Connecticut First-Time Home Buyer: 2025 Programs and Grants

What to know about buying a house in Connecticut

With rising home prices, being a Connecticut first-time home buyer might feel like an uphill battle. But don’t despair! Connecticut has special, affordable mortgages for first-time buyers.

You may also be able to get financial help, bridging the gap between your savings and your down payment needs. Here’s how to get started.

In this article (Skip to ...)

• CT home buyer overview
• Home loan options
• CT home buyer programs
• First-time buyer grants
• Buying in Connecticut’s cities
• Resources
• CT mortgage rates

Connecticut home buyer overview

The median list price in Connecticut was $416,300 in October 2024. That increased 4.8% from the previous year, according to Redfin. But, in more affluent cities, prices can be astronomical.

Connecticut home buyer stats

Down payment amounts are based on the state's most recently available average home sale price. “Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620.

If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the US Department of Agriculture), you may not need any down payment at all.

First-time home buyer loans in Connecticut

First-time home buyers with a 20% down payment in the state of Connecticut can get a conventional loan with a low interest rate. And you never have to pay for private mortgage insurance (PMI).

Of course, few first-time buyers have saved enough for 20% down. But the good news is that you don’t need that much. Not by a long shot. Borrowers can often get into a new home with as little as 3% or even 0% down using one of these low-down-payment mortgage programs:

• Conventional 97: From Freddie Mac or Fannie Mae. 3% down payment and 620 minimum credit score. You can usually stop paying mortgage insurance after a few years
• FHA loan: Backed by the Federal Housing Administration. 3.5% down and a 580 minimum credit score. But you’re on the hook for mortgage insurance premiums (MIP) until you refinance to a different type of mortgage, move, or pay off your loan
• VA loan: Only for veterans, active-duty military members, reservists, and National Guard. Zero down payment is required. Minimum credit score varies by lender but often 620. No ongoing mortgage insurance after closing. These are arguably the best mortgages available, so apply if you’re eligible
• USDA loan: For those on low-to-moderate incomes buying in designated rural areas. Zero down payment required. Credit score requirements vary by lender but often 640. Low mortgage insurance rates
• Connecticut Housing Finance Authority: May include competitive mortgage interest rates and can be used with down payment assistance. More information below

Note that government loan programs (including FHA, VA, and USDA home loans) require you to buy a primary residence. That means you can’t use these loans for a vacation home or investment property.

In addition, most programs let you use gifted money or down payment assistance (DPA) to cover your down payment and closing costs. Depending on the mortgage loan you choose, you could potentially get into your new house with minimal cash out of pocket.

If you’re unsure which program to choose for your first mortgage, your lender or real estate agent can help you find the right match based on your finances and home buying goals.

CT first-time home buyer programs

The Connecticut Housing Finance Authority (CHFA)⁴ offers two main home loan options, though there are others for those with specialized needs. The two big CHFA loans are:

1. HFA Advantage and HFA Preferred mortgage programs⁵: These provide lower mortgage insurance premiums than normal, which can reduce your monthly payments
2. Homebuyer Mortgage Program⁶: Offers below-market interest rates and access to down payment assistance. If you can afford monthly mortgage payments but need help with your upfront home buying costs, this first-time home buyer program might be for you

Both are mainly available to Connecticut first-time home buyers, including those who haven’t owned a home within the previous three years. However, someone buying in a targeted area may be in line for help even if they’re not a first-time buyer.

As is usual with home buyer assistance programs, there are purchase price and income limits based on household size and county. But the CHFA resource map will show you what those figures are for the place where you want to buy.

Additionally, you’ll have to complete a home buyer education course and use a CHFA-approved lender to qualify for one of these mortgages.

Unfortunately, homeowners looking to refinance their current mortgages will need to look elsewhere. CHFA loans are only available for home purchases.

Special interest rate discounts

Select home buyers may find even more assistance in the Constitution State. Eligible borrowers can qualify for a 0.125% discount on the published interest rates when they are a:

• U.S. military service member or veteran
• State trooper or police officer
• Teacher
• Disabled person (or have a disabled person living in your household)
• Public housing resident buying a home

Connect with a CHFA-approved lender to find out whether you qualify for these special programs and discounted mortgage rates.

CT first-time home buyer grants

Connecticut Housing has two main down payment assistance programs, DAP and Time To Own. Here’s what you can expect with both programs.

CHFA Down Payment Assistance Program (DAP)

The CHFA DAP doesn’t offer grants. Instead, eligible applicants can get second mortgage loans with an interest rate of just 1% (valid through at least December 31, 2023). These low-interest loans have to be repaid in parallel with your mortgage. So expect to show that you can comfortably afford both monthly payments.

CHFA lets you borrow up to $20,000 toward your down payment. However, your loan amount can’t exceed the required down payment for your loan program: 3%-3.5% of the purchase price, depending on which mortgage you use.

Time To Own Forgivable Down Payment Assistance

The Time To Own loan offers eligible applicants up to 20% for down payment and up to 5% for closing costs. However, the loan amounts are capped at $50,000 for homes located in “high-opportunity areas” and $25,000 in other areas. See the program’s map to determine what you qualify for.

Assistance comes in the form of a 0% interest loan with no monthly payments. This is a second mortgage that is forgiven at a rate of 10% each year. But you’ll have to pay the current balance back if you sell or refinance before it’s fully forgiven at year 10.

What’s more, qualifying buyers can combine this program with the CHFA DAP to further maximize their home buying potential.

Need to know more? Get in touch with a local CHFA-approved lender⁷ or call the CHFA Single Family Department at (860) 571-3502. The email address is sfaminquiry@chfa.org.

Also note that CHFA is not the only down payment assistance in town. Below, you’ll find a list of organizations providing help for first-time home buyers in individual cities and counties across Connecticut. And be sure to check out any that serve your area. Because they may offer a down payment assistance program that suits you better than the statewide option.

Buying a home in Connecticut’s major cities

Median home prices in Connecticut’s biggest cities vary enormously. Stamford was by far the most expensive of the big three, while New Haven still offers affordable home prices in The Constitution State.

The good news for a Connecticut first-time home buyer is that each of those cities has its own down payment assistance loans, two of which are forgivable. So, provided you’re eligible and stay in your next home long enough, you could be in line for some free money to help with your down payment and closing costs.

Bridgeport first-time home buyers

The median list price in Bridgeport was $322,500 in October 2024. That grew 11.6% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $9,675 for 3% down payment
• $64,500 for 20% down payment

The City of Bridgeport has a good down payment program. The program “aids low-and moderate-income home buyers” by providing them with a forgivable loan to cover their down payment and closing cost needs. Because the loan is forgivable, you don’t make monthly payments.

If you borrow less than $15,000 this way, the loan will be fully forgiven after five years — at the end of which you’ll owe nothing on that loan. But the more you borrow, the longer the period you have to wait for it to be forgiven: 10 years for $15,000-$40,000 and 15 years for more than $40,000.

Note that you’ll have to repay the loan in full or in part if you sell, refinance, or move before the time when it’s forgiven.

If that guide is too full of dense legal language for you, ask for advice from Bridgeport’s Department of Housing and Community Development at (203) 576-8144 or via email at hcd@bridgeportct.gov.

Stamford first-time home buyers

Due to its modern small-town vibe and proximity to New York, real estate in Stamford tends to be more expensive than the rest of Connecticut.

The median list price in Stamford was $649,000 in October 2024. That decreased 2.7% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $19,470 for 3% down payment
• $129,800 for 20% down payment

The city’s Stamford HOME program is administered by Housing Development Fund, Inc. (HDF) Eligible applicants can get an interest-free loan of up to $20,000 toward their down payment and closing costs.

However, you must repay that in full when you sell the home, refinance your first mortgage, transfer the title, or finish paying off that main mortgage.

The website says: “To be eligible for HOME funds, the total household income must not exceed 65% of the Area Median Income as adjusted for family size. All buyers will need to complete the HDF homeownership counseling program requirements. There is a $2,000 fee for this loan, payable to HDF at closing.”

There’s very little other information. But you can get in touch with HDF through an online contact form on its website.

New Haven first-time home buyers

The median list price in New Haven was $282,500 in October 2024. That grew 2.7% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $8,475 for 3% down payment
• $56,500 for 20% down payment

The City of New Haven has a decent down payment and closing cost assistance program. You can borrow up to 6% of the purchase price of a single-family home, up to a maximum of $10,000.

That takes the form of an interest-free loan, with no monthly payments. It’s forgiven at a rate of 20% each year. At the end of the fifth year, you owe nothing. If you move, sell or refinance before then, you’ll have to repay the portion of the no-interest loan that remains unforgiven.

Want to know more? Email DGolia@newhavenct.gov

Where to find home buying help in Connecticut

All the organizations we’ve listed above should provide advice freely to any first-time home buyer in Connecticut or their local area.

In addition to our selection, the U.S. Department of Housing and Urban Development (HUD) provides lists for statewide, regional, and local resources:

Statewide and regional first-time home buyer resources in CT:

• Connecticut Housing Finance Authority: Homebuyer assistance programs, including down payment and closing cost assistance
• CHIF/USDA Rural Services Homeownership Program: State and federal partnership that provides mortgage assistance to first-time homebuyers
• Housing Development Fund, Inc.: Homebuyer programs, including down payment assistance, for residents in Fairfield, New Haven and Litchfield counties
• Habitat for Humanity: Through volunteer labor, builds and rehabilitates houses for families in need
• U.S. Department of Agriculture Rural Housing: Homebuyer programs in rural communities

First-time home buyer programs by city/town in Connecticut:

• Bridgeport
• Fairfield
• Farmington
• Greenwich
• Hamden
• Hartford
• Manchester
• Meriden
• Middletown
• New Haven
• Norwalk
• Stamford

What are today’s mortgage rates in Connecticut?

You can see today’s live mortgage rates in Connecticut here.

When you’re ready to start the home buying process, experiment with a mortgage calculator to see how down payment and interest rates will affect your mortgage payment. Then make sure you get personalized rate quotes from at least three to five mortgage lenders.

Don’t just look at advertised rates online. Actually apply for preapproval and compare the interest rates and fees you’re offered. Because that’s the only way to know you’re getting the best deal possible on your new home loan.

¹Source: Redfin Connecticut Housing Market report

²Source: Experian.com study of 2021 and 2020 data

³Based on a review of the state's available DPA grants at the time this was written

⁴Connecticut Housing Finance Authority (CHFA)

⁵HFA Advantage and HFA Preferred mortgage programs

⁶Homebuyer Mortgage Programs

⁷CHFA-approved lenders