Connecticut First Time Home Buyer Programs



Connecticut First Time Home Buyer Programs

Are you thinking of buying your first home in Connecticut? Would you like information on the various programs and incentives available in CT to help you purchase that first home? If so, you’ll find what you are looking for here. The state of Connecticut provides many state and local programs – including free grant money – for its residents who need help with the down payment and closing costs. There is also Federal Grant money available as well as grants from private foundations. Details of the programs are listed below. This is free money that shouldn’t be passed up! The value of the assistance provided by these programs can be in the thousands of dollars. It will be well worth your time to educate yourself about the programs in CT that are available to you.


At DECD, they want to help build quality housing, not only because everyone deserves a comfortable home – and they do – but because they know that housing is a key ingredient in promoting the vitality of every neighborhood, every community, and every city and town in the state. Their motto is, “When we build better housing, we’re building a better Connecticut.”

The Office of Housing and Community Development (OHCD) is the agency’s principal point of contact for financial assistance to local housing authorities and other non-profit and for-profit housing developers in the planning and development of new single and multi-family housing units as well as the preservation of existing multi-family housing developments. This office maintains a staff of housing specialists who are knowledgeable of the many local, state and federal housing programs and services in Connecticut. OHCD is also responsible for long-term compliance monitoring to assure adherence to statutes, regulations and financial assistance agreements for housing development and preservation activities funded by the agency.

The contact info for the Connecticut Department of Economic and Community Development is:

State of Connecticut
Department of Economic and Community Development
505 Hudson Street
Hartford, CT 06106-7106
Office of Housing Development and Finance Phone: 860-270-8183


Connecticut Housing Finance Authority Downpayment Assistance Program (860) 571-3502

“The Downpayment Assistance Program (DAP) offers supplementary loans at below-market interest rates to eligible borrowers of home loans who are unable to raise sufficient funds to pay the upfront expenses associated with purchasing a home.

Please note: A DAP loan is not intended to finance the purchase of a home.  Because CHFA recognizes that the foremost obstacle to homeownership is a potential homebuyer’s inability to cover the down payment and closing costs of a home purchase, DAP loans can be used in conjunction with CHFA home loans.  An eligible borrower must show his or her ability to repay the primary mortgage and the DAP loan in order to qualify for assistance under this program.”

Local Programs in Cities and Counties

In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides home buyer assistance and grants in every state. There are multiple grant programs designed specifically for people that meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available. For your convenience, simply go to this page.

Here is the contact information for the HUD office in Connecticut:

Hartford Field Office
One Corporate Center
20 Church Street
10th Floor
Hartford, CT 06103-3220
Phone: (860) 240-4800
Fax: (860) 240-4850

There are also these local programs:

Fairfield Homeownership Assistance Program (203) 256-3120

“The Town’s Homeownership Assistance Program is funded by a grant from the U.S. Department of Housing & Urban Development (HUD).  The program is intended to expand homeownership opportunities for income-eligible, first-time homebuyers who qualify to purchase a home but may not have sufficient financing on their own to complete the purchase transaction.

Assistance may be used toward the purchase of any owner-occupied, single-family, two-family or condominium unit in Fairfield.  The program is not available for the purchase of non-owner occupied, investment properties. The Town provides two forms of assistance under the program.

Downpayment Assistance: The Town will provide 50% of the required down-payment up to a maximum of $30,000 toward the purchase of a home through a no-interest loan, payable when the owner re-finances, transfers the property or passes away.

Closing Costs: The Town will help pay reasonable closing costs up to a maximum of $2,500.  Funds are provided as a grant and need not be re-paid.  Funds may be used toward attorney fees, the cost of appraisals and/or pre-paid interest and other financing charges.”

Farmington Cooperative Home Ownership Program (860) 675-2300

“In order to increase its affordable housing stock, the Town of Farmington began a program in 1981 known as the Plan for Cooperative Ownership. To make the purchase of single-family homes more affordable to home-buyers of low and moderate income, the Town of Farmington enters into a partnership with the individual in which the Town would own the land and the individual would own the home on the land. This partnership would enable the individual to pay a mortgage only on the home (not the land) making it much more affordable. Individuals whom are selected for the program are responsible for their own financing and have the responsibility of choosing a realtor to help find an existing home in Farmington.”

Hamden Economic and Community Development Down Payment Assistance Program (203) 287-7030

“The Town of Hamden Office of Housing and Neighborhood Development offers applications for a First-Time Homebuyer Down Payment Assistance Grant. The program is designed to assist low and moderate income first-time homebuyers with the purchase of their first home. Qualified applicants can receive up to $5,000 in matching funds to help with their down payment.”

Hartford Homebuyers Homeownership Assistance Programs (860) 757-9005

“The Housing and Property Management Division is working to help Hartford’s citizens achieve the goal of homeownership. We currently offer loan programs that primarily serve low-income and moderate-income households seeking to purchase a home in the City.

Our HouseHartford and Homeownership Appraisal Gap Financing programs have contributed to the livability and stability of Hartford’s housing stock by providing financial assistance to potential homebuyers. HouseHartford is a mortgage program offering mortgage interest rate buy-downs or downpayment and closing cost assistance, and the Homeownership Appraisal Gap Financing program promotes the affordability of newly developed or rehabilitated homes. Both programs have played a significant role in helping citizens become first time homebuyers, and sparking the revitalization of Hartford’s neighborhoods.”

Hartford Homeownership Appraisal Gap Financing (HAGF) (860) 588-4888

“The primary purpose of the Homeownership Appraisal Gap Financing Program is to provide financing for the new construction, and or rehabilitation of vacant, deteriorated homes in order to increase the rate of homeownership in Hartford.

The Homeownership Appraisal Gap Financing Program commits financing to the developer (for-profit and non-profit), which is then made available to the homebuyer. The “Gap” is the difference between the total project costs and either the appraised value of the property at closing or the actual purchase price. Substantial efforts must be made by the developer to sell the property at or above the appraised value.”

Hartford House Hartford Down payment and Closing Cost Assistance Program (HHP) (860) 757-9005

“1. Is HouseHartford assistance available to buy homes outside of Hartford?
No, HouseHartford is a City of Hartford program providing assistance to citizens that want to purchase a home within the City of Hartford.

2. Is HouseHartford available to Hartford residents only?
No, residents from other towns can apply for assistance to purchase a home in Hartford.

3. What types of properties are eligible for assistance?
One-four (1-4) family homes and condominium units.

4. Who can apply?
Generally speaking low & moderate income potential homebuyers can apply.

5. What is the maximum amount of homebuyer assistance that I could receive?
Depending on buyer’s total annual household income, the program maximum is $14,999.”

Housing Development Fund, Inc. First-Time Homebuyers Program (203) 969-1830

“HDF’s First-Time Homebuyers Program can help you get ready to buy your first home with our following services: FREE Mortgage Readiness Assessment, One-on-One Counseling, Financial Coaching Services, and Homebuyer Education Classes.* Our process will help you develop action steps to correct credit problems, increase your savings, reduce debt, and move towards homeownership.

Our First-time homebuyer counseling process begins with a 30-minute orientation session. Orientations are offered seven times a week in three locations (in both English and Spanish). At orientation, a counselor gathers the documentation needed to assess a client’s mortgage-readiness and provides an overview of the FTHB program, loan products, and what to expect along the route to homeownership. If you are a resident of Litchfield County, click here.”

Manchester Downpayment Assistance and/or Closing Cost Program (860) 647-3106

“Pilot Downpayment Assistance and/or Closing Cost Program for Manchester Interest Rates

Currently, the Pilot Downpayment Assistance and/or Closing Cost Program for Manchester is providing mortgages at the following rate:

Interest rate: 2.500%** (APR range 2.6 – 3%)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term: 30 years, fixed rate”

Meriden Housing Authority Homeownership Program (203) 235-0157

“The Section 8 Homeownership Program (SEHOP) is available for participants who are a part of the FSS program.  Homeownership allows first-time homeowners to use voucher subsidy to meet monthly homeownership expenses.  To participate in homeownership families must be eligible under HUD’s Section 8 regulations, they must meet any discretionary requirements and the Meriden Housing Authority elects, and they must be first-time homebuyers.  Additionally, participants must not have received homeownership assistance in the past or defaulted on the mortgage.  The families are also required to engage in homeownership counseling.  Lastly, the participant must satisfy both the minimum income requirement and the employment requirement.”

New Haven Livable City Initiative Down Payment/Closing Cost Loan Program (ALP) (203) 946-8389

“Financial assistance for first-time homebuyers for down payment and closing costs. The amount of assistance provided to any low-income family cannot exceed the greater of six percent (6%) of the purchase price of a single family (1-4) housing unit or $10,000. The City will provide a zero (0%) interest forgivable loan that is forgiven at the rate of 20% per year, as of each anniversary of the loan’s execution date. At the end of the five-year loan period the loan is fully forgiven. The applicant may sell or transfer the property at any time during the monitoring time period; provided the balance of the loan is repaid to the City of New Haven or the property is sold /transferred to an individual who is willing to assume the balance and the terms and conditions of the loan. The deferred loan can be used for: down payment, closing cost or the combination of both down payment and closing cost.”

Stamford HOME Program (203) 977-4140

“The City of Stamford makes available its annual allocation of funding from the United States Department of Housing and Urban Development (HUD) under their HOME Investment Partnerships Program.  Owner occupants may apply for funds at any time during the year.  Funds are also available for rental projects or new development which enter a competition and are rated relative to City priorities.”

Windsor Down payment Assistance Program (860) 298-9060

Yale New Haven Hospital Homebuyer Program (203) 946-8200

In July, 2006 Yale-New Haven Hospital (YNHH) announced a new program offering assistance to hospital employees who are first-time home buyers. The new Home Ownership Made Easier (H.O.M.E.) program provides eligible full-time employees up to $10,000 in forgivable five-year loans, as well as other incentives and home buying support, when they purchase a home in the city of New Haven. The hospital will pay down the amount of the loan if the employee continues to work at YNHH and live in the home for five years. If hospital employees purchase a home in one of four New Haven neighborhoods.


About Jennifer Cribsly

I'm a former real estate broker who specialized in helping first time buyers be able to purchase a home. Now full time mom, part time real estate owner/investor.
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