Lift Up Homeownership

Lift Up Homeownership is a forgivable loan for homebuyers in Statewide, Connecticut, administered by Federal Home Loan Bank of Boston (FHLBank Boston). Lift Up Homeownership is an FHLBank Boston down-payment and closing-cost grant for income-eligible first-generation, first-time homebuyers purchasing a primary residence in New England, including Connecticut. Eligible buyers earning up to 120% of area median income receive a 0% grant (forgiven over a 5-year retention period) delivered through participating member banks and credit unions. Funds may be used for down payment, customary closing costs, and up to a 2-point interest-rate buydown. Down-payment & closing-cost grant (per-round cap; up to ~$50,000 in recent rounds). 0% forgivable over a 5-year retention period. First-generation first-time buyers up to 120% AMI. Up to 2-point rate buydown. Statewide in CT through FHLBank Boston member lenders. Funding comes from FHLBank Boston voluntary, board-approved Special Purpose Credit Program (separate from the AHP-regulated set-aside).

Lift Up Homeownership offers up to $50,000 in assistance. Award tiers: Per-homebuyer grant cap is announced each annual funding round; member enrollment cap up to $400,000 ($200,000 for first two releases). Two-pool allocation: 60-day state pool, then general first-come pool. Homebuyer contribution: Each assisted household must contribute $1,000 of their own funds (cannot be a gift or gift of equity); may include earnest money deposit, cash to close, and paid-outside-closing fees. The contribution must remain in the transaction. Amounts are the program's published maximums, not an offer — Federal Home Loan Bank of Boston (FHLBank Boston) determines any individual award.

Lift Up Homeownership is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Pro-rata subsidy repayment if sold/transferred/refinanced (and not subordinated)/foreclosed during the 5-year retention period; fully forgiven after 5 years. Obligation terminates on foreclosure, deed-in-lieu, or death of the assisted homeowner. The assistance is recorded in Subordinate (second) lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Lift Up Homeownership is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer per 42 U.S.C. 12704(14): neither the borrower nor spouse may have owned a home in the 3 years prior to purchase. A homebuyer education course is required, through At least one borrower must complete FHLBank Boston-approved homebuyer education/counseling within 24 months of enrollment approval or closing. Approved organizations are listed by New England state on FHLBank Boston's Homebuyer Education/Counseling list; online options include eHome America, Fannie Mae HomeView, Finally Home!, Framework, or Home Trek (post-counseling required). CURRENT program (Procedures effective April 2026) serves FIRST-GENERATION first-time homebuyers (parents/legal guardian of at least one borrower never owned a U.S. home, or a borrower aged out of foster care) - it is NOT race/ethnicity restricted (prior 'people of color' framing has been superseded; the catalog's NH Lift Up row should be re-checked). Apply only through an FHLBank Boston member institution. Per-homebuyer grant amount is set each annual funding round; ~$50,000 in recent rounds - CONFIRM current round amount. Requires $1,000 of buyer's own funds; asset cap $150,000; front-end ratio over 37% requires compensating factors; max $250 cash back at closing. Eligible property types not enumerated in the procedures (primary residence only) - left blank pending confirmation.

Lift Up Homeownership limits household income to 120% of the area median income, which varies by county and household size. Household income up to 120% of HUD AMI based on the property's location; income of all adult (18+) household members is counted. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Lift Up Homeownership caps the purchase price as follows: No standard purchase-price limit; IRS Mortgage Revenue Bond Average Purchase Price Limits apply only in the asset-cap exception scenario.

Lift Up Homeownership names first-generation homebuyers among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Lift Up Homeownership serves homebuyers purchasing in Statewide, Connecticut.

Applications for Lift Up Homeownership go through Federal Home Loan Bank of Boston (FHLBank Boston), which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served via FHLBank Boston Community Lending online system through approved member institutions. Enrollment submitted 15 business days before closing; funds reserved 90 days. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.