Connecticut First-Time Homebuyer Programs: Time To Own, DAP and Next Move

Connecticut first-time homebuyer programs can help eligible buyers cover some of the upfront cost of purchasing a home. However, the programs do not all work the same way.

The Connecticut Housing Finance Authority, or CHFA, offers several mortgage and down payment assistance options. Some assistance can be forgiven over time. Other assistance must be repaid.

Three programs worth understanding are Time To Own, the Down Payment Assistance Program (DAP), and Next Move with Deferred DPA.

The important question is not simply which program provides the most assistance. Buyers also need to understand eligibility, repayment terms, monthly payments, and what happens if they later sell or refinance.

Quick take: Connecticut first-time homebuyer programs

Here are the main differences.

• Time To Own: Offers eligible buyers up to $25,000. The loan has a 0% interest rate and no monthly payment. CHFA reduces the original principal by 10% each year if program conditions continue to be met.
• DAP: Provides up to $15,000. It is a second mortgage that the borrower repays.
• Next Move with Deferred DPA: Provides deferred assistance at 0% interest. The assistance is not forgivable and can be used by qualifying first-time or repeat buyers.

Because the repayment terms differ, two buyers receiving “down payment assistance” may have very different financing.

How CHFA defines a first-time homebuyer

A first-time homebuyer does not always mean someone who has never owned a home.

CHFA generally considers a buyer eligible under its first-time homebuyer rules if the person has not owned a primary residence during the previous three years.

There are also exceptions for some buyers purchasing homes in federally designated Targeted Areas. In those areas, CHFA may waive the first-time buyer requirement. However, the buyer generally cannot own another property at closing.

Income limits, property requirements, sales-price limits, credit standards, and underwriting rules can also apply depending on the mortgage and assistance program.

Therefore, past homeownership does not automatically mean a buyer is ineligible.

Connecticut first-time homebuyer programs: Time To Own

Time To Own receives considerable attention because eligible buyers can receive up to $25,000 toward their down payment and closing costs.

The assistance comes as a subordinate loan with a 0% interest rate and no required monthly payment.

CHFA reduces the original principal balance by 10% each year on the anniversary of the loan. As a result, the loan can become fully forgiven after ten years if the borrower continues to meet the program requirements.

However, this is not the same as receiving $25,000 with no conditions.

CHFA’s current applicant notice states that the remaining Time To Own balance can become due when certain events occur. These include selling or transferring the property, refinancing or paying off the first mortgage, or no longer using the property as a primary residence.

In addition, Time To Own cannot be obtained by itself. The buyer must qualify for an eligible CHFA first mortgage and meet Time To Own requirements.

Applicants must also currently live in Connecticut and demonstrate Connecticut residency for the most recent three years.

Therefore, the better question is not, “How do I get $25,000?” It is, “Do I qualify, and what conditions come with the assistance?”

DAP: a second mortgage that buyers repay

CHFA’s Down Payment Assistance Program, usually called DAP, can provide up to $15,000 toward eligible down payment and closing costs.

The major difference is repayment.

DAP is a second mortgage. Unlike Time To Own, the assistance is not gradually forgiven.

The current DAP interest rate is the lower of the borrower’s CHFA first-mortgage interest rate or 5%. Buyers must also demonstrate that they can repay both the first mortgage and the DAP loan.

CHFA determines the allowable DAP amount under its program rules. Therefore, a borrower does not simply choose any amount up to $15,000.

This distinction matters when comparing Connecticut first-time homebuyer programs. The amount of assistance is only one part of the financing decision. Repayment terms can affect both the monthly housing cost and the buyer’s long-term finances.

Next Move: deferred assistance for first-time and repeat buyers

Next Move with Deferred DPA provides another option for buyers who meet its requirements.

Unlike many CHFA mortgage programs, Next Move is available to both qualifying first-time buyers and repeat buyers.

CHFA currently lists no maximum sales price for the program. However, borrowers must meet income, credit, occupancy, and underwriting requirements.

The deferred down payment assistance carries a 0% interest rate. Current CHFA program guidance provides assistance equal to 3% of the first-mortgage amount with conventional financing and 3.5% with government-backed financing.

There are no regular monthly payments on the deferred assistance.

However, the balance is not forgiven. CHFA states that the deferred loan becomes due when the home is sold or transferred, the borrower stops occupying the property, or the first mortgage is paid off.

That makes Next Move different from both Time To Own and DAP.

Comparing Connecticut first-time homebuyer programs

The three programs can be summarized this way:

Time To Own: Potentially forgivable over ten years, subject to program conditions.

DAP: A second mortgage that the borrower repays.

Next Move: A 0% deferred loan with no regular monthly payment, but the balance is not forgiven.

For that reason, choosing a program based only on the maximum assistance amount can leave out an important part of the decision.

The first mortgage, monthly payment, cash needed at closing, repayment rules, and expected length of homeownership can all affect how the financing works.

Will CHFA financing affect a home offer?

CHFA financing comes with underwriting and property requirements. However, those requirements vary based on the first-mortgage program.

CHFA recommends that buyers obtain an independent home inspection. CHFA financing also involves an appraisal, while FHA, VA, USDA, Fannie Mae, and Freddie Mac programs can have their own appraisal or property standards.

Therefore, buyers should understand the financing before submitting an offer.

A CHFA-participating lender can explain the mortgage program, down payment assistance, appraisal requirements, and any conditions that could affect the transaction.

CHFA also allows buyers to become pre-qualified before beginning their home search.

That can help establish a realistic price range and identify the assistance programs that may actually be available.

Where to start before looking at homes

For buyers interested in Connecticut first-time homebuyer programs, financing is a practical place to start.

CHFA requires borrowers using these programs to work through participating lenders.

Before deciding on a home price range, a lender can review:

• Household and qualifying income
• Credit and existing debt
• Available cash
• Estimated mortgage payment
• Property location
• First-time buyer status
• Potential CHFA assistance programs

After that review, the buyer can compare the complete financing options.

Time To Own may fit one buyer. DAP may fit another. Next Move may work for a first-time or repeat buyer. In other cases, a different mortgage may provide the better overall structure.

The purpose of down payment assistance is to reduce an upfront financing obstacle. It does not automatically make a particular mortgage the best option.

Final takeaway

Connecticut offers several legitimate programs that can help eligible homebuyers with down payment and closing costs.

Time To Own can provide up to $25,000 and may become fully forgiven over ten years if its requirements are met.

DAP can provide up to $15,000, but it is a second mortgage that must be repaid.

Next Move provides 0% deferred down payment assistance for qualifying first-time and repeat buyers. However, that assistance is not forgivable.

The programs are not interchangeable.

Before including any assistance amount in a home-buying budget, confirm eligibility and repayment terms with a CHFA-participating lender. Program funding, limits, and requirements can change.

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Image: Simple three-column comparison graphic showing Time To Own, DAP and Next Move.

ALT TEXT: Connecticut first-time homebuyer programs comparison showing Time To Own, DAP and Next Move assistance.

Sources & links (for posting)

Connecticut Housing Finance Authority — Time To Own Forgivable Down Payment Assistance
https://www.chfa.org/homebuyers-homeowners/homebuyers/time-to-own-down-payment-assistance-program-loan/

CHFA — Time To Own Applicant Notice, August 2026
https://www.chfa.org/assets/1/19/028_Time_to_Own_(TTO)-_Applicant_Notice__TTODiscl_Rev._8-10-26.pdf?15399=

Connecticut Housing Finance Authority — Down Payment Assistance Program (DAP)
https://www.chfa.org/homebuyers-homeowners/homebuyers/downpayment-assistance-program-dap-loan/

Connecticut Housing Finance Authority — Next Move with Deferred DPA
https://www.chfa.org/homebuyers-homeowners/homebuyers/next-move-with-deferred-dpa-program-/

CHFA — Next Move with Deferred Down Payment Assistance Program Manual
https://www.chfa.org/assets/1/19/Next_Move_(Non-_Bond)_Home_Program_Manual_5.13.26_FINAL5.pdf?15078=

Connecticut Housing Finance Authority — First-Time Homebuyer Guide
https://www.chfa.org/homebuyers/chfa-first-time-homebuyer-guide/

Connecticut Housing Finance Authority — Resource Map and Targeted Areas
https://www.chfa.org/homebuyers/chfa-resource-map-target-areas/

Connecticut Housing Finance Authority — Participating Lenders
https://www.chfa.org/realestateagents/chfa-approved-lenders/