Down Payment Assistance Connecticut  ·  FHA DPA & CHFA  ·  NMLS #1630225

Down Payment Assistance in Connecticut — The 3.5% and 5% Programs

Two FHA assistance tiers and the state CHFA program can cover your down payment, your closing costs, or both. Which one you can actually use usually comes down to your credit score: only the 3.5% tier will take a manually underwritten file.

Last updated July 2026 · reviewed by a licensed mortgage broker

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★★★★★ 5.0 on GoogleNMLS #1630225 · verify on NMLS Consumer AccessLicensed in NJ · CT · FL (FL MLB 1987)Family owned since 2017 · Ridgefield, NJ
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120 Mo5% Tier Lien
Repayable Term
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On FHA DPA


Your Answer Right Here

Down payment assistance in Connecticut can cover your down payment and closing costs through CHFA and other programs. Below is every Connecticut down payment assistance option and who qualifies.

Your Connecticut DPA Options — Answered Right Here

Connecticut home buyers have two strong paths to down payment assistance: wholesale FHA DPA programs available through licensed mortgage brokers like Mortgage-World.com and Connecticut Housing Finance Authority (CHFA) state programs designed for income-qualified first-time buyers. Here is what you need to know before you ever speak with a lender.

The FHA DPA programs available through Mortgage-World.com pair a 30-year fixed FHA first mortgage with a second lien worth either 3.5% or 5% of the purchase price. That second lien covers your FHA minimum down payment in full, and in many cases it also extends to closing costs. There is no income cap on these programs — any borrower in Connecticut who qualifies for FHA financing can use them — and the minimum credit score is 580. The 3.5% second lien can be structured as a forgivable lien that disappears after 36 consecutive on-time payments. Alternatively, it can be structured as a repayable second at the first mortgage note rate plus 2%, amortized over 10 years.

The Connecticut Housing Finance Authority (CHFA) Down Payment Assistance Program (DAP) provides a second mortgage of up to $20,000 for income-qualified first-time buyers purchasing a primary residence in Connecticut. The DAP loan carries a low fixed interest rate, has its own monthly payment, and pairs with a CHFA first mortgage. Income limits and purchase price caps apply by location across Connecticut. The Connecticut Housing Finance Authority publishes current income limits, purchase price caps, and lender lists on their official website. The U.S. Department of Housing and Urban Development also maintains a full directory of approved DPA programs and HUD-approved housing counseling agencies for Connecticut buyers.

A free mortgage review with Mortgage-World.com shows you both options side by side so you can choose the program that puts the most assistance in your pocket. Call 888.958.5382 or apply online and we will walk you through your Connecticut DPA options.


Program Comparison

FHA DPA vs CHFA — Connecticut Program Comparison at a Glance

Compare the main Connecticut home buyer assistance programs available through Mortgage-World.com (NMLS #1630225), a licensed Connecticut mortgage broker.

Program DPA Amount Min FICO Income Limit DPA Structure First-Time Buyer Required
FHA 3.5% DPA 3.5% of purchase price or appraised value 580 None Forgivable after 36 payments or repayable 10-yr No
FHA 5% DPA 5% of purchase price or appraised value 580 None Repayable over 10 years at Note Rate + 2% Yes
CHFA DAP Up to $20,000 second mortgage 620 Yes — varies by location Low fixed rate, monthly payment required Yes
CHFA Homebuyer Mortgage DAP combined with CHFA 1st mortgage 620 Yes — income-qualified Below-market rate first mortgage + DAP second Yes

Down Payment Assistance Connecticut – Mortgage-World.com NMLS 1630225DOWN PAYMENT ASSISTANCE CONNECTICUT  ·  MORTGAGE-WORLD.COM  ·  NMLS #1630225FHA 3.5% DPACONNECTICUTManual underwriting OK at 600Forgivable after 36 paymentsor repayable over 10 years580 FICO minimumNo income cap1st & repeat buyers eligibleFHA 5% DPACONNECTICUTCovers down payment + costsRepayable 10-yr at Note+2%101.5% CLTV available580 FICO minimumNo income capAutomated approval onlyCHFA DAPSTATE PROGRAM CTUp to $20,000 second mortgageLow fixed rate, monthly pmtIncome limits by location620 FICO minimumPairs with CHFA 1st mortgageStatewide CT coverageWHO QUALIFIESCT BUYERS580+ FICO (FHA DPA)Primary residence CT1st-time & repeat buyersUS Citizens & Perm ResNon-occ co-borrowers OKCounseling on the 5% tier
Down Payment Assistance Connecticut — Mortgage-World.com NMLS #1630225 | Licensed CT Mortgage Broker | FHA DPA · CHFA Programs | 888.958.5382


How It Works

How the Second Lien Structure Works in Connecticut

When you use an FHA DPA program in Connecticut, two loans close on the same day. The first is a standard FHA mortgage at 96.5% LTV. The second is the DPA lien covering the 3.5% minimum FHA down payment. Together they reach a combined loan-to-value of 100% on the 3.5% program, or up to 101.5% on the 5% program — meaning you can buy a Connecticut home with no down payment out of pocket. Before closing, at least one borrower on the loan must complete a course from a HUD-approved Connecticut housing counseling agency. After closing, 36 consecutive on-time first mortgage payments qualifies you to request the forgivable DPA second lien be discharged with no remaining balance. The repayable DPA adds a second monthly payment for 10 years at the Note Rate plus 2%, then drops off entirely.

Hartford, Bridgeport, and New Haven: What to Know About Purchase Price Caps

Connecticut is a diverse real estate market. Fairfield County buyers in Greenwich, Westport, and Darien face some of the highest home prices in New England, while buyers in Waterbury, Meriden, and New Britain will find considerably more affordable options. The wholesale FHA DPA program has no purchase price ceiling beyond the current FHA conforming loan limit for each Connecticut county. For buyers in Fairfield County or the Greater Hartford metro whose target purchase price exceeds the CHFA county cap, the FHA DPA program delivers a higher dollar benefit without income restrictions. In more affordable markets across the state, CHFA’s DAP second mortgage at up to $20,000 is a compelling option for income-qualified buyers looking to minimize out-of-pocket costs at the closing table.


Who Qualifies in CT

Qualifying for Connecticut Home Buyer Assistance: Credit, Income & Property

Borrower Requirements (FHA DPA)
  • Minimum 580 FICO for AUS-approved FHA DPA loans (3.5% and 5%)
  • Minimum 600 FICO if using manual underwriting on the 3.5% DPA
  • First-time and repeat home buyers are both eligible on FHA DPA
  • U.S. Citizens and Permanent Resident Aliens
  • Non-occupant co-borrowers allowed on FHA DPA programs
  • No income cap on qualifying income for FHA DPA programs
  • At least one borrower must complete HUD-approved housing counseling
Borrower Requirements (CHFA DAP)
  • First-time home buyer (no primary residence ownership in past 3 years)
  • Minimum 620 FICO for CHFA DAP and CHFA Homebuyer Mortgage programs
  • Income at or below CHFA income limits for household size and location
  • Purchase price must fall within CHFA county purchase price caps
  • Must purchase and occupy the property as primary residence in Connecticut
  • CHFA-approved homebuyer education completion required before closing
Eligible Property Types in Connecticut
  • Owner-occupied primary residence in Connecticut
  • Single family detached and attached homes (1 unit)
  • Two-unit (duplex) properties with FHA DPA program
  • Planned Unit Developments and townhouses
  • FHA-approved condominiums without active litigation
  • Manufactured homes (double-wide): 620 FICO, 20-yr repayable DPA term
  • Investment properties and second homes are not eligible
Loan Structure & Terms
  • FHA first mortgage: 96.5% LTV, 30-year or 25-year fixed rate
  • Standard and high-balance Connecticut FHA loan limits both eligible
  • Forgivable DPA: no monthly payment; forgiven after 36 on-time payments
  • Repayable DPA: Note Rate + 2%, amortized over 10 years
  • 2-1 buydown allowed on 3.5% DPA (seller/builder paid only)

CT Broker Advantage: Mortgage-World.com (NMLS #1630225) compares wholesale FHA DPA programs and CHFA state options for every Connecticut buyer. The FHA DPA programs have no income cap — a key advantage for Fairfield County and Greater Hartford buyers whose income may exceed CHFA limits. We find the program that delivers the most down payment assistance for your purchase price and credit profile.

Choosing Between Them

3.5% or 5%? The Answer Usually Comes Down to Your Credit Score

Connecticut buyers can reach two FHA down payment assistance tiers, and the bigger one is not automatically the better one. They differ in three ways that matter. The first rules out the 5% tier for a lot of the people who would most like to use it.

The 5% tier will not take a manually underwritten file

This is the difference that decides it. The 3.5% tier allows manual underwriting. You need a 600 score to go that route, against 580 with an automated approval. The 5% tier does not allow it at all. It requires an automated approval.

Below a 640 score, every FHA file is read by a person. So for most of the buyers asking about this, the 3.5% tier is the only one actually on the table. Better to know that at the first conversation than three weeks into a file.

One can be forgiven. The other is a payment you qualify on

The 3.5% second lien can be forgivable or repayable. The forgivable version has no monthly payment at all. You request forgiveness once you have made 36 consecutive on-time payments on your first mortgage.

The 5% second lien is repayable only. It amortizes over 120 months at your first mortgage rate plus 2%, and that payment sits inside your debt-to-income ratio. It is a monthly obligation you have to qualify around, not just a bigger number at closing. More assistance, less borrowing room. For some Connecticut buyers that trade is worth making. For others it is exactly what pushes the ratio over.

What is the same on both

Both sit behind an FHA first mortgage to 96.5% of the price, on a 30- or 25-year fixed. Both can cover your down payment, your closing costs, or both. Neither has an income cap, which is usually what separates these from the state program. Both allow a non-occupant co-borrower. Both are for a home you will live in. Neither carries a lender fee on the second lien.

The 5% tier adds one requirement. At least one borrower has to complete a HUD-approved homebuyer counseling course. That is not hard, but it takes calendar time, so it belongs at the start of the file rather than the week before closing.

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Frequently Asked Questions

Frequently Asked Questions: Down Payment Assistance Connecticut

What down payment assistance programs are available in Connecticut?
Connecticut home buyers have two main paths to down payment assistance: wholesale FHA DPA programs through Mortgage-World.com (NMLS #1630225) offering 3.5% or 5% of the purchase price with no income cap and a 580 minimum FICO, and the CHFA Down Payment Assistance Program (DAP) providing up to $20,000 for income-qualified first-time buyers pairing with a CHFA first mortgage. Call 888.958.5382 to compare both options.
How much down payment assistance can I get in Connecticut?
FHA DPA programs provide 3.5% or 5% of the purchase price. On a $350,000 Connecticut home that is $12,250 to $17,500 toward your down payment and closing costs. The CHFA DAP provides up to $20,000 for income-qualified first-time buyers. Because FHA DPA programs have no income cap and no purchase price ceiling beyond FHA loan limits, they often deliver a higher dollar amount for Fairfield County and Greater Hartford buyers.
Do I have to be a first-time home buyer to get Connecticut down payment assistance?
No. Both the FHA 3.5% and 5% DPA programs available through Mortgage-World.com are open to first-time and qualified repeat buyers who meet credit and property guidelines. The CHFA DAP and CHFA Homebuyer Mortgage programs do require first-time buyer status — defined as no primary residence ownership in the past three years. If you do not qualify under CHFA’s first-time buyer definition, the wholesale FHA DPA program through Mortgage-World.com (NMLS #1630225) is your path to Connecticut down payment help.
What is the minimum credit score for down payment assistance in Connecticut?
The minimum credit score for FHA 3.5% and 5% DPA programs in Connecticut is 580 FICO. Manual underwriting on the 3.5% DPA requires a 600 minimum FICO. CHFA DAP and CHFA Homebuyer Mortgage programs generally require a 620 minimum FICO. If your score is between 580 and 619, the wholesale FHA DPA program through Mortgage-World.com is your primary path to Connecticut down payment help. Call 888.958.5382 to review your options — we work with buyers across the credit spectrum.
Does Connecticut down payment assistance have to be repaid?
It depends on the program. The FHA 3.5% DPA forgivable structure carries no monthly payment and is forgiven after 36 consecutive on-time first mortgage payments. The repayable DPA amortizes the second lien over 10 years at the first mortgage rate plus 2%. The 5% DPA is always repayable. The CHFA DAP second mortgage carries a monthly payment at a low fixed rate for the life of the loan. Our team at Mortgage-World.com walks every Connecticut buyer through the repayment terms for each option before you commit.
Is there an income limit for down payment assistance in Connecticut?
The FHA DPA programs through Mortgage-World.com (NMLS #1630225) carry no income cap — any Connecticut buyer who qualifies for FHA financing can use them regardless of income. This is especially valuable for buyers in Fairfield County, Stamford, Greenwich, and the Greater Hartford metro whose income may exceed CHFA income thresholds. The CHFA DAP applies income caps that vary by household size and municipality. We compare both programs for every buyer so you always know which one puts the most assistance in your pocket. Call 888.958.5382.
Can Connecticut down payment assistance cover closing costs?
Yes. The 5% FHA DPA program provides up to 101.5% CLTV, allowing DPA funds to cover the full down payment plus a portion of closing costs. On the 3.5% program, excess DPA can also be applied toward closing costs where the purchase price is below the appraised value. A seller or builder-paid 2-1 buydown is permitted on the 3.5% program within FHA’s 6% interested party contribution limit. The CHFA DAP’s up to $20,000 can be applied toward both down payment and eligible closing costs for CHFA-eligible Connecticut buyers.
Can I use Connecticut down payment assistance if my loan has to be manually underwritten?
On the 3.5% tier, yes — it allows manual underwriting with a minimum 600 credit score, against 580 if your file gets an automated approval. On the 5% tier, no. That program requires an automated approval and will not take a manually underwritten file at all. This matters more than it sounds, because every FHA loan at or below a 640 score is manually underwritten. For a lot of the Connecticut buyers asking about assistance, the 3.5% tier is the only one genuinely on the table, and it is worth establishing that at the first conversation.
Does the 5% assistance payment count against me when I qualify?
Yes, and this is the trade at the heart of the choice. The 5% second lien is repayable only. It amortizes over 120 months at your first mortgage rate plus 2%, and that monthly payment sits inside your debt-to-income ratio like any other debt. So the larger assistance comes with less borrowing room. The 3.5% tier’s second lien can instead be forgivable, with no monthly payment at all, forgiven on request once you have made 36 consecutive on-time payments on your first mortgage. More help at closing is not automatically the better outcome.
Can I use down payment assistance in Connecticut if I have owned a home before?
On the FHA assistance programs, yes. Both the 3.5% and the 5% tiers are open to first-time and repeat buyers, and neither carries an income cap. The state CHFA Down Payment Assistance Program is the one with the restriction: it is for first-time buyers, defined as not having owned a primary residence in the past three years, and it applies income limits that vary by location. So a repeat buyer in Connecticut is usually looking at the FHA route rather than the state one.

Related down payment pages: Down payment assistance overview · New Jersey down payment assistance · Florida down payment assistance.

Related Resources

Comparing Your Connecticut Options?

CT down payment helpBoth FHA tiers and the state program, side by sideYou are hereFHA in ConnecticutLimits by planning region, and how to applyCompareLow credit scoreIf your score is what decides the tierCompareFirst-time buyerThe Connecticut programs together in one placeCompare
Related Down Payment Assistance ProgramsFHA in ConnecticutCT first-time buyerLow credit score CTCT requirementsFHA down paymentCT conventionalGet pre-approved
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What You Need
✓3.5% tier accepts a manual underwrite at 600
✓5% tier requires an automated approval
✓No income cap on either FHA tier
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Down Payment Assistance Connecticut guide by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225

Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author

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