Overview
Connecticut's proximity to New York City and Boston creates a housing market with significant price variation. Fairfield County, closest to NYC, has median home prices well above $500,000, while more affordable options exist in the eastern and northern parts of the state. The Connecticut Housing Finance Authority provides essential assistance for first-time buyers navigating these costs.
The Time to Own program is CHFA's primary assistance offering, providing up to $20,000 for down payment and closing costs as a second mortgage with a low interest rate. This program requires first-time buyer status and completion of a homebuyer education course. The assistance can be combined with CHFA's first mortgage products for a comprehensive financing package.
State Programs
Time to Own
Down payment and closing cost assistanceCHFA Downpayment Assistance Program (DAP)
Down payment assistanceFederal Programs Available in Connecticut
These nationwide programs can be combined with Connecticut state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Connecticut
CHFA also offers the standard Downpayment Assistance Program, providing up to $10,000 for buyers who may not qualify for the full Time to Own benefit. Both programs require working with a CHFA-approved lender and meeting income limits that vary by county.
Connecticut's graduated income tax ranges from 2% to 6.99%, and property taxes are among the highest in the nation, averaging about 2.14%. However, the state offers property tax credits of up to $300 for qualifying homeowners and has expanded the Earned Income Tax Credit, which can benefit lower-income homebuyers.
Towns like Hartford, New Haven, and Waterbury offer significantly more affordable housing than the coastal communities, with median prices often below $250,000. Many of these areas also qualify for targeted assistance programs with enhanced benefits for buyers purchasing in underserved communities.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.