CHFA Time To Own Forgivable Loans ($25,000 to $50,000) and DAP in 2026 — CT Home Field Guide
Updated October 2026
A Connecticut buyer can afford a monthly mortgage payment yet still struggle with the down payment and closing costs. CHFA financing addresses those separate hurdles through eligible first mortgages and assistance programs. The key is understanding which funds must be repaid, which can be forgiven, and which combinations your purchase qualifies to use.
Separate the first mortgage from assistance
HFA Advantage and HFA Preferred are CHFA conventional mortgage options. They finance the purchase itself; they are not interchangeable names for down payment assistance. A participating lender checks borrower qualifications, property eligibility, household income, purchase price, and required homebuyer education.
CHFA’s Down Payment Assistance Program, commonly called DAP, provides separate financing for eligible upfront costs. Do not assume DAP carries the same forgiveness terms as Time To Own. Ask for its current rate, payment, lien position, and repayment schedule in writing.
Review current offerings with the Connecticut Housing Finance Authority before building an offer around assistance proceeds.
Understand Time To Own forgiveness
Time To Own provides up to $25,000 in normal areas or $50,000 in qualifying high-opportunity locations. The program carries 0% interest, with 10% of the original assistance forgiven annually over ten years while program conditions remain satisfied.
For a $25,000 award, that schedule means $2,500 forgiven per completed qualifying year. A $50,000 award corresponds to $5,000 annually. These are maximum award tiers, not an automatic entitlement to the full amount.
- Verify the property address against the program’s opportunity-area designation.
- Confirm funding availability and reservation timing with a participating lender.
- Ask how occupancy, sale, refinancing, or transfer affects the unforgiven balance.
- Obtain written confirmation before assuming DAP and Time To Own can be combined.
A town’s reputation or a listing description does not establish the property’s assistance tier.
Build a complete cash-to-close plan
List the deposit, inspection, appraisal, attorney charges, prepaid insurance, and initial tax escrow separately. Some expenses come due before closing, so assistance approval does not eliminate the need for accessible cash.
Use our closing cost estimator and mortgage options comparison to organize lender quotes. Connecticut’s July and January property-tax installments can change escrow funding requirements depending on the closing date.
The Consumer Financial Protection Bureau explains Loan Estimates and Closing Disclosures. Compare those documents with each assistance agreement so the first-mortgage payment, separate obligations, and remaining cash requirement are all visible.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
CHFA Time To Own Forgivable Loans ($25,000 to $50,000) and DAP in 2026 — Choose a mortgage by comparing eligibility, upfront cash and total monthly costs, not the advertised rate alone. Conventional, FHA, VA and USDA serve different borrowers. Confirm county limits, taxes, insurance and lender requirements before comparing personalized Loan Estimates for your household.
Historical 2025 one-unit comparison: conforming $832,750; FHA floor $541,287. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
- Connecticut Housing Finance Authority — state housing finance and property tax authority.
- Connecticut Office of Policy and Management — state housing finance and property tax authority.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.