Homeownership Program

This program is designed to ease the transition from renting to homeownership by offering below-market interest rate loans to qualified tenants of public housing. This program is available to participants in rental assistance programs and tenants of rental housing supported by CHFA, the U.S. Department of Housing and Urban Development, and local housing authorities.


  • Low interest rate
  • Down payment assistance available

Eligible Properties

  • Single-family homes, Townhouses, and Planned Unit Developments (PUDs)
  • FHA Approved or Fannie Mae-eligible Condominiums
  • Two- to-four unit homes that have been used as residences for the past five years

Eligibility Requirements

  • You must be a tenant of public housing or receive rental assistance. Residents of properties managed or financed by CHFA, subsidized by HUD, or managed by a local housing authority also qualify.
  • You must meet minimum credit, income, and employment standards.
  • You must be a first-time homebuyer or have not owned a home in the past three years.
  • The home must be your primary residence.  Investment or vacation properties are not allowed.
  • The sales price of the home must be within the CHFA Sales Price Limits, and your gross income must be within the CHFA Statewide Income Limits.

Targeted Area Exception 

If you have owned a home in the past three years, you may still be eligible if you plan to purchase a home in an area of the state targeted for revitalization. CHFA will waive the income limit for eligible applicants purchasing in Targeted Areas who are not applying for a Downpayment Assistance Program loan.

Additional Considerations

  • You must attend a free Homebuyer Education class prior to closing. The class will help you understand the home-buying process and offer tips for maintaining your new home. Classes are held online and at locations across Connecticut.
  • Federal mortgage insurance through the Federal Housing Administration (FHA), the Veterans Administration, USDA Rural Development or Private Mortgage Insurance may be required. Insurance may not be required for borrowers with a down payment of 20% or more.
  • In rare cases, you could be required to pay a Federal Recapture Tax if you sell your home within the first nine years, AND earn a profit, AND your income exceeds the designated Federal Recapture Tax Income at the time of sale. Should you fall into this category, you may be reimbursed by CHFA for the taxes paid if you complete and file the required forms. Consult a tax professional if you have questions on the Recapture Tax.
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DISCLAIMER: This is not an offer to make a loan or to make a loan on any particular terms. All loan applicants must qualify under underwriting requirements and satisfy all contingencies of loan approval. Rates and terms subject to change without notice. Norcom Mortgage NMLS ID # 71655 (www.nmlsconsumeraccess.org)