Down Payment Assistance Program (DAP) Loans

If you can afford monthly mortgage payments but don’t have enough saved for the down payment, a DAP loan can help you make the switch from renting to owning a home.

CHFA recognizes that saving enough money to pay the down payment is the main barrier to homeownership for many first-time homebuyers. If you have the monthly income to pay mortgage payments, but not enough money to pay the upfront costs, you may qualify for a low-interest loan to help you cover the down payment. Borrowers can finance the down payment with a DAP loan.  A DAP loan is a second mortgage on your home. In most cases, the interest rate on a DAP loan will be the same as the interest rate on your CHFA first mortgage.

Benefits

• Home purchase with down payment assistance
• Low-interest rate second mortgage
• Financing to cover down payment

Eligibility Requirements

• You must first apply and qualify for a CHFA mortgage.
• You will be required to use any household savings above $10,000 towards your down payment – excluding your retirement account. CHFA will waive this requirement for qualified programs.
• An eligible borrower must show his or her ability to repay the CHFA first mortgage and the DAP loan in order to qualify for assistance under this program.

Additional Considerations

• Your DAP loan must be at least $3,000, but no more than the minimum down payment required for your home, usually between 3% and 3.50%. We will work with you to determine the amount of down payment required for your mortgage loan and verify your ability to repay both your first mortgage and the DAP loan.
• You will be required to attend a free Homebuyer Education class prior to closing. The class will help you understand the home-buying process and offer tips for maintaining a home. Classes are held online and at locations across Connecticut.