Down Payment Assistance

The Best-Kept Secret in Real Estate Financing

Many homebuyers are surprised to learn that 2,746 down payment assistance programs exist across the country, and most aren’t limited to low‑income households. In fact, 62% of programs serve incomes above $100,000, making them accessible to a wide range of buyers who simply want to reduce upfront costs and move into a home sooner.

Available Programs

Loan Terms

  • Forgivable Loans (forgiven over 5-20 years)
  • Deferred Payment Loans (due at sale/refinance)
  • Repayable Second Mortgages
  • Matched Savings Programs

Rate Type Options

  • Programs that charge no interest on the assistance
  • Reduced-rate options — ask for current APRs
  • Grant Programs (No Repayment Required)

Specialized Programs

  • First-Generation Homebuyer Programs
  • Community Hero Programs (Teachers, Healthcare, Public Safety)
  • Military and Veteran Assistance
  • Manufactured Housing Programs
  • Multi-Family Investment Property Programs

Refinance

  • Some programs allow refinancing while maintaining assistance
  • Transfer programs for job relocations
  • Rate modification options for qualifying circumstances

The Sooner You Buy, the More You Gain

Down payment assistance isn’t a handout, it’s fiscal genius. The sooner you buy, the sooner you start building equity and benefiting from appreciation, while eliminating the years of delay trying to save. It works a lot like compounding interest in a retirement plan: getting in earlier creates more long‑term growth. Assistance programs help buyers preserve their savings, shorten the path to ownership, and step into the market now instead of an unknown date in the future.

Basic Qualifications Framework

Credit Requirements

  • Varies by program (some as low as 580 credit score)
  • Most programs require standard mortgage-qualifying credit
  • Credit counseling often provided through programs

Down Payment Requirements

  • Amounts vary widely by program — Connecticut's Time To Own runs $3,000 to $25,000, while HDF's SmartMove CT can reach 25% of the purchase price
  • Some programs cover 100% of required down payment
  • Combined with low-down payment first mortgages
  • Buyer contribution requirements vary by program

Income & Employment

  • Income limits based on Area Median Income (AMI)
  • Many programs serve up to 120% of AMI (solidly middle-class)
  • Limits are often higher than expected — Time To Own allows $129,500 for a 1–2 person Connecticut household, and more in target areas
  • Employment verification typically required

Property Eligibility

  • Primary residences primarily, some investment properties allowed
  • Single-family homes, condos, townhomes, manufactured homes
  • Multi-family properties supported by 962 programs — 35% of the national total
  • Geographic restrictions apply to most local programs

Mortgage Insurance

  • Many programs reduce or eliminate PMI through higher equity positions
  • Grant programs provide immediate equity without monthly costs
  • Forgivable loans build equity over time
  • Combined benefits often superior to traditional financing

Knowledge is Power.....and a faster path to homeownership

Used wisely, assistance programs can strengthen your entire mortgage profile. They can lower your loan‑to‑value ratio, reduce or eliminate mortgage insurance, and increase your buying power in competitive markets. Some programs even support multi‑family purchases, allowing buyers to combine homeownership with rental income from day one.

Here's a MortgageFun fact — municipalities run more assistance programs than any state agency does, about 39% of the national total, ahead of nonprofits at 22% and state housing finance agencies, like CHFA, at 18%. The largest single category of help available to you is the local kind almost nobody markets. Finding it is part of my job.

Ready to discover available assistance programs? Call me and I'll identify what you qualify for, how each program is structured, and which combination actually fits your circumstances.

**Time To Own and the CHFA first mortgage programs referenced on this page are programs of the Connecticut Housing Finance Authority (CHFA). MortgageFun with Mike and Harbour Mortgage Group are not affiliated with, endorsed by, or acting on behalf of CHFA, the Connecticut Department of Housing, or any government agency. Down payment assistance described here is generally a repayable second mortgage loan. Nothing on this page is a commitment to lend, an offer of credit, or a determination that you qualify. Down payment assistance subject to program-specific eligibility requirements, income limits, and property restrictions. Forgivable loans may require repayment if program conditions not met. Geographic and occupancy requirements apply to most programs. Program terms change without notice

***National program counts and percentages: Down Payment Resource, Homeownership Program Index, Q2 2026 (data as of July 1, 2026).

***Time To Own figures: CHFA, verified August 2026. SmartMove CT: Housing Development Fund, verified August 2026.