Getting into your first home with less out-of-pocket cash might sound too good to be true, but it’s the central benefit of Connecticut’s Time to Own program. This initiative provides a major financial lift, offering a loan of up to $25,000 to help you cover the down payment and closing costs. What makes it so powerful is that it’s designed to be forgiven. The Time to Own forgivable down payment assistance essentially becomes a grant over a decade, rewarding you for making your house a long-term home. This allows you to start building equity from day one without the stress of a second monthly payment. Let’s explore the financial perks and show you how this program can make your home purchase more affordable and secure.
Key Takeaways
- Earn Your Down Payment Back Over Time: The program provides up to $25,000 as a 0% interest loan for your down payment and closing costs. With no monthly payments required, 10% of the loan is forgiven each year you live in the home, completely disappearing after ten years.
- Qualifying is More Flexible Than You Think: To be eligible, you must first secure a CHFA mortgage. While the program is aimed at first-time homebuyers, previous owners can still qualify if they purchase a home in one of Connecticut’s designated “targeted areas.”
- Understand the 10-Year Commitment: Full loan forgiveness depends on you living in the home as your primary residence for a full decade. Selling, refinancing, or transferring the title early will require you to repay the remaining loan balance, so it’s crucial to understand this long-term condition from the start.
What is Connecticut’s Time to Own Program?
Buying your first home is an incredible milestone, but the upfront costs of a down payment and closing fees can feel like a huge hurdle. That’s where Connecticut’s Time to Own program comes in. Think of it as a helping hand from the state, designed to make homeownership more accessible for first-time buyers. It provides significant financial assistance in the form of a forgivable loan, tackling those initial expenses so you can focus on finding the perfect place to call home.
This isn’t just another loan; it’s a unique opportunity to get into a home with less out-of-pocket cash. The program is structured to reward you for putting down roots in your community. If you’re dreaming of owning a home in Connecticut but are worried about saving enough for the down payment, this program could be the key that opens the door for you. Let’s break down exactly how it works and what makes it such a powerful tool for new homebuyers.
How It Works
The Time to Own program offers a loan to cover your down payment and closing costs, provided by the Connecticut Housing Finance Authority (CHFA). This assistance can be a game-changer, offering up to 20% for your down payment and up to 5% for closing costs. The best part? The loan is forgivable. For every year you live in the home as your primary residence, 10% of the loan is forgiven. After you’ve lived in your home for 10 years, the entire loan balance is completely wiped away. You won’t owe a penny of it back. This structure makes the Time To Own program a fantastic way to build equity from day one without the burden of a second monthly payment.
The Role of CHFA
To get the Time to Own loan, you first need to secure a CHFA first mortgage. The two loans work together as a package deal. The Connecticut Housing Finance Authority (CHFA) doesn’t issue these loans directly to borrowers. Instead, they partner with a network of trusted, CHFA-approved lenders across the state to handle the application and approval process. Your first step is to connect with a lender from the CHFA Participating Lender List—like us here at UDL Mortgage. We can confirm your eligibility, guide you through the paperwork, and manage the entire process to ensure everything goes smoothly from start to finish.
Understanding the 0% Interest Loan
Let’s talk about the numbers, because this is where the Time to Own program really shines. The assistance you receive comes as a loan with a 0% interest rate. That means the amount you borrow will never grow—what you see is what you get. On top of that, there are no monthly payments required. You won’t have to budget for an extra bill each month, which frees up your cash flow for other homeownership costs. Because the loan is forgiven over a decade, it essentially becomes a grant to help you buy your home, as long as you stay for the full 10 years. It’s a straightforward and powerful way to make your homeownership dream a reality.
Do You Qualify for the Time to Own Program?
So, you’re interested in the Time to Own program—that’s fantastic! It’s a powerful tool for Connecticut homebuyers, but like any great program, it has a few requirements. Before you start picturing where to put the sofa, it’s important to see if you check the right boxes. Think of it less like a test and more like a checklist to make sure the program is the right fit for you and your financial situation. The good news is that the criteria are straightforward, covering things like your homebuying history, income, and residency.
We’ll walk through each one together so you can get a clear picture of where you stand. Understanding your eligibility is the first real step toward securing this assistance, and we’re here to help you figure it out. The Connecticut Housing Finance Authority (CHFA) sets these guidelines to ensure the funds go to the residents who can benefit most. Let’s break down exactly what you need to qualify.
First-Time Homebuyer Status
First things first, the Time to Own program is primarily designed for first-time homebuyers. If you’ve never owned a home before, you’re in a great position to qualify. This is the main group the program aims to support on their journey to homeownership. But what if you have owned a home in the past? Don’t count yourself out just yet. The program has an important exception that we’ll cover in more detail below. For now, just know that being a first-time buyer is the most direct path to eligibility, but it’s not the only one.
Meeting the Income Requirements
Your eligibility for the Time to Own loan is directly tied to your ability to secure a primary mortgage. Specifically, you must qualify for a CHFA mortgage loan to be considered. This means you’ll need to meet CHFA’s income limits and credit requirements, just as you would for any standard mortgage application. This step ensures that you’re in a stable financial position to handle homeownership. Our team at UDL Mortgage is experienced with all types of loan programs and can help you determine if you meet the financial criteria needed to move forward with both your primary loan and the Time to Own assistance.
Connecticut Residency Rules
This program is all about supporting Connecticut residents, so there’s a clear rule about how long you’ve called the state home. To qualify for the Time to Own program, you must have been a resident of Connecticut for at least the last three years. This requirement helps ensure that the state’s resources are invested back into the community and benefit long-term residents who are looking to plant even deeper roots. It’s a straightforward requirement with no exceptions, so be prepared to provide documentation that confirms your residency history during the application process.
Exceptions for Previous Homeowners
Remember that exception we mentioned for previous homeowners? Here are the details. You may still be eligible for the Time to Own program even if you’ve owned a home before, provided you meet two specific conditions. First, the home you’re purchasing must be in a designated “targeted area” of the state. These are specific census tracts identified by the government. Second, you cannot own any other property at the time of your closing. This exception is designed to encourage investment in certain communities, so it’s worth checking if the neighborhood you’re interested in is on the list of targeted areas.
The Financial Perks of Time to Own
Let’s talk about the best part of the Time to Own program: the money. This isn’t just a small grant; it’s a significant financial leg-up that can make the difference between renting for another year and finally getting the keys to your own place. The program is designed to tackle the biggest financial hurdles homebuyers face, from the down payment to the closing costs. Think of it as a powerful partner in your homebuying journey, giving you the resources you need to make your dream a reality. Here’s a closer look at exactly how it helps your wallet.
Up to $25,000 in Assistance
The Time to Own program offers a major financial cushion with an assistance loan of up to $25,000. This isn’t a one-size-fits-all deal; the loan amounts start at $3,000, providing flexibility for buyers with different needs. Whether you need a little help to get over the finish line or a more substantial amount to make your purchase possible, this program can adapt. This forgivable down payment assistance is structured to make homeownership in Connecticut more accessible, giving you a strong start without the immediate burden of repayment. It’s a straightforward way to get the funds you need to secure your new home.
Covering Your Down Payment
Saving for a down payment is often the biggest challenge for aspiring homeowners. The Time to Own program directly addresses this by allowing you to cover up to 20% of your down payment. This is a game-changer, as it can drastically reduce the amount of cash you need to bring to the table. For many, this support is what makes buying a home possible in the first place. By easing this initial financial strain, the program opens doors for many first-time buyers who have steady income but haven’t had the years to save up a large lump sum.
Help with Closing Costs
Beyond the down payment, closing costs can be an unexpected and hefty expense. These fees cover everything from attorney services to title insurance and can add up quickly. The Time to Own program recognizes this and offers additional support for closing costs, covering up to 5% of these expenses. This extra layer of financial help ensures you aren’t caught off guard by last-minute costs. It provides peace of mind and makes the final steps of your home purchase feel much more manageable, letting you focus on the excitement of getting your keys.
Eligible Property Types
Worried that your dream home might not qualify? The Time to Own program is surprisingly flexible when it comes to the types of properties you can buy. It covers a wide range of homes, so you aren’t limited in your search. Eligible properties include single-family homes, townhouses, and units in planned unit developments (PUDs). Even better, the program extends to FHA- or Fannie Mae-approved condos and multi-family homes with two to four units. This inclusivity means you can find a home that truly fits your lifestyle, whether you’re looking for a quiet suburban house or a property with rental potential.
How Loan Forgiveness Works
This is where the Time to Own program really shines. Unlike a traditional loan that you have to pay back in full, this down payment assistance is forgivable. This means that over time, the amount you owe can completely disappear, as long as you meet certain conditions. Think of it as a gift from the state to help you build equity and settle into your new home without the long-term burden of a second loan. The forgiveness happens gradually, rewarding you for making the home your primary residence. It’s a powerful feature designed to support long-term homeownership in Connecticut. Let’s break down exactly how this process works, year by year.
The 10% Annual Forgiveness
The best part about this loan is that it’s “forgivable.” So, what does that actually mean for you? It means 10% of the loan is erased each year on the anniversary of your loan closing. For example, if you received $20,000 in assistance, $2,000 of that loan balance is forgiven after your first year in the home. After the second year, another $2,000 is forgiven, and so on. You don’t have to make any payments on this loan; you just have to live in the house. This incremental forgiveness makes it easier to build equity from day one and reduces your financial obligation over time without you having to do a thing.
Your Path to 100% Forgiveness
The annual forgiveness continues for a full decade. After 10 years, the entire loan is forgiven, and you don’t owe anything back. That initial assistance for your down payment or closing costs becomes a true grant, with no strings attached. This is a huge financial win for homebuyers. It allows you to benefit from the initial help without the stress of repaying a second mortgage down the line. The key is simply to remain in the home as your primary residence for those 10 years. It’s Connecticut’s way of investing in residents who are committed to putting down roots in their communities.
How to Stay Eligible for Forgiveness
To keep the loan forgiveness on track, you have to follow a few key rules. The most important one is that the home must remain your primary residence for the entire 10-year forgiveness period. You also cannot own any other property when you close on your CHFA mortgage. If you sell the house, transfer the title, or refinance your primary mortgage before the 10 years are up, you’ll likely have to repay the remaining balance of the assistance loan. These requirements are in place to ensure the program benefits genuine homebuyers who plan to live and stay in Connecticut.
Common Myths About the Time to Own Program
Down payment assistance programs can feel like a maze of rules and requirements, so it’s no surprise that some myths have popped up around the Time to Own program. Let’s clear the air and separate fact from fiction. Understanding how this program really works is the first step toward using it to get into your dream home. We’ll walk through some of the most common misconceptions so you can move forward with confidence.
Myth: The Loan is Forgiven Immediately
It’s easy to hear “forgivable loan” and think the money is yours free and clear from day one, but that’s not quite how it works. The Time to Own loan is forgivable over time, which is still a fantastic deal. Here’s the breakdown: every year, on the anniversary of your closing date, 10% of the loan is forgiven. This happens for ten consecutive years. Once you hit that 10-year mark, the loan is 100% forgiven, and you owe nothing back. Think of it as a reward for putting down roots in your home and community.
Myth: It’s Impossible to Qualify
Many potential homebuyers assume they won’t qualify for assistance programs, but you might be surprised. While the Time to Own program is designed primarily for first-time homebuyers, that doesn’t automatically count you out if you’ve owned a home before. The key exception is for those purchasing a home in one of the state’s designated “targeted areas.” If you’re buying in one of these communities, you may still be eligible even if you’re not a first-timer. Don’t let assumptions stop you from exploring your options.
Myth: You Have to Make Monthly Payments
This is a big one, and the truth is a huge relief for many new homeowners. The Time to Own loan comes with a 0% interest rate, and you are not required to make any monthly payments on it. Zero. This isn’t a second mortgage that adds another bill to your pile each month. Instead, it’s designed to make homeownership more accessible without adding to your monthly financial burden. The loan simply decreases on its own each year until it disappears, as long as you continue to own and live in the home.
Myth: It Replaces Your Primary Mortgage
Think of the Time to Own program as a powerful partner to your main mortgage, not a replacement for it. This loan is specifically for down payment and closing cost assistance. To receive these funds, you must first qualify for and secure a CHFA first mortgage loan. The Time to Own loan works in tandem with your primary mortgage to bridge the financial gap that often keeps people from buying a home. It’s a helping hand that makes the entire purchase possible.
Selling Your Home Before the Loan is Forgiven
Life is full of surprises, and your plans might change after you buy your home. While the Time to Own program is designed to help you stay in your home long-term, you might find yourself needing to sell sooner than you expected. If that happens, it’s important to understand how it affects your forgivable loan. Because the assistance is forgiven over a 10-year period, leaving early means you’ll likely have to pay back the portion that hasn’t been forgiven yet.
This isn’t meant to be a roadblock or a penalty. It’s simply how these programs ensure the funds are used for their intended purpose: to promote stable, long-term homeownership in Connecticut communities. Think of it as a partnership. The state provides a significant financial lift to get you into a home, and in return, you commit to being part of the community for a set period. The key is to go in with a clear picture of your obligations. Before you even sign the papers, you should know the specific terms of your loan agreement, particularly the forgiveness schedule and any conditions that could trigger a repayment. Understanding these details upfront empowers you to make the best financial decision for your future, no matter what it holds.
Understanding Your Repayment Duty
When you receive a forgivable loan like the Time to Own assistance, you agree to certain conditions. The most important one is a residency requirement. The loan is forgiven gradually as long as you live in the home as your primary residence. If you decide to sell, refinance, or transfer the title of your home before the loan is fully forgiven, you’ll most likely have to repay the remaining balance. For the Time to Own program, this means any portion of the loan that hasn’t been forgiven yet will become due at closing. Think of it as a safety net that comes with a commitment—if you uphold your end of the deal by staying in the home, the assistance is yours to keep.
Rules for Transferring Your Property
The term “transferring your property” covers more than just selling it. Actions like refinancing your primary mortgage or adding a new person to the home’s title can also trigger the repayment clause in your loan agreement. Each down payment assistance program has its own specific rules, so it’s crucial to read the fine print. For the Time to Own loan, the official guidelines are managed by the Connecticut Housing Finance Authority (CHFA). Before making any major changes to your mortgage or homeownership status, your best bet is to consult your loan documents or speak directly with a CHFA-approved lender. This proactive step can save you from an unexpected bill down the road.
How to Apply for the Time to Own Program
Ready to make your move? Applying for the Time to Own program is a clear, step-by-step process. Think of it less like a mountain of paperwork and more like a clear path to your front door. The key is to be prepared and to work with a team that knows how to guide you through it. With the right partner, you can confidently handle each step, from your initial education course to gathering your final documents.
The entire process is managed by the Connecticut Housing Finance Authority (CHFA), so you’ll be working with lenders and resources they’ve approved. This ensures that everyone involved is an expert on the program’s specific requirements. It’s a structured system designed to help serious buyers succeed. We’ll walk you through exactly what you need to do to put together a strong application and get one step closer to owning your home. Let’s get started.
Step 1: Take the Homebuyer Education Course
First things first: you’ll need to complete an approved homebuyer education course. This is a mandatory first step for the Time to Own program, and for good reason. The course is designed to equip you with the knowledge you need to be a confident and successful homeowner, covering everything from budgeting to understanding the mortgage process. Think of it as your homebuying playbook. Completing this requirement is common for many down payment assistance programs, so the information you learn will be valuable no matter what.
Step 2: Find a CHFA-Approved Lender
Once you have your course certificate, your next move is to find a lender. This is a crucial step because only lenders on the official CHFA Participating Lender List can process your Time to Own application. You can’t simply go to any bank or mortgage company. Working with an experienced, CHFA-approved lender like UDL Mortgage means you have a partner who understands the program’s requirements inside and out. We can help you confirm your eligibility and ensure your application is submitted correctly, saving you time and potential headaches.
Step 3: Gather Your Documents
With your lender on board, it’s time to get your financial documents in order. Being prepared here will make the entire process run much more smoothly. Your lender will provide a specific list, but you can generally expect to need items like recent pay stubs, the last two years of your tax returns, and bank statements. Having these documents ready to go shows you’re an organized and serious buyer. If you’re ready to see what’s required, you can start your application with us to get a clear checklist of everything you’ll need.
What to Expect from the Timeline
After you submit your application and all your documents, you can typically expect to hear back about your eligibility within a few weeks. This timeline can vary depending on your lender and how complete your application is, which is why preparation is so important. A thorough, well-organized application can lead to a faster approval. Your lender should keep you updated throughout this period so you’re never left guessing. At UDL Mortgage, we pride ourselves on clear communication, ensuring you know exactly where you stand every step of the way.
Time to Own vs. Other CT Homebuyer Programs
The Time to Own program is a fantastic resource, but it’s helpful to see how it fits into the bigger picture of homebuyer assistance in Connecticut. The Connecticut Housing Finance Authority (CHFA) offers several programs, and understanding your options can help you build the strongest financial foundation for your new home. Think of these programs as different tools in a toolkit—sometimes you need just one, and other times, you can use a few together to get the job done. Let’s look at how Time to Own compares and works with other assistance available to you.
Exploring Other CHFA Programs
The Time to Own program isn’t a standalone offer; it’s a key part of the support system provided by the Connecticut Housing Finance Authority (CHFA). It’s specifically designed as a forgivable loan to help with your down payment and closing costs. One of the most important things to know is that to qualify for the Time to Own loan, you also need to secure a CHFA first mortgage loan. This requirement ensures the program is fully integrated with CHFA’s main home financing options, creating a streamlined process for buyers. It’s one of several tools CHFA offers to make homeownership more accessible across the state.
Can You Combine Assistance Programs?
One of the best features of the Time to Own program is its flexibility. You can absolutely use this loan alongside other down payment assistance programs, which can significantly increase your purchasing power. This “stacking” of benefits is a game-changer for many first-time buyers. What if you’ve owned a home before? You might still be in luck. CHFA allows previous homeowners to qualify for the Time to Own program if they are buying in one of Connecticut’s designated “targeted areas.” In some of these cases, CHFA may even waive the income limits, as long as you aren’t receiving another down payment assistance loan. It’s always worth exploring all your loan program options to see what combination works best for you.
Partner with UDL Mortgage for Your Application
Navigating the Time to Own program requires working with a CHFA-approved lender, but your choice of partner can make all the difference. You need a team that not only understands the program’s rules but is also dedicated to making your homebuying journey smooth and successful. At UDL Mortgage, we combine deep expertise with a commitment to exceptional service, ensuring you get the support you need every step of the way.
The UDL Elite Partner Advantage
To apply for the Time to Own loan, you must work with a lender from the CHFA Participating Lender List. While this ensures a basic level of qualification, our team offers something more. Through our Elite Partner Program, we provide a white-glove service experience that goes beyond the standard application process. We act as your dedicated guide, proactively managing deadlines and paperwork so you can focus on finding your perfect home. Our clients get exclusive access to preferred rates and programs, giving you a distinct advantage in a competitive market.
A Simpler, Faster Application
The Time to Own program’s features—like its 0% interest rate and no monthly payments—are incredible benefits, but securing them involves a detailed application. We simplify this entire process. Our experienced loan officers know exactly what CHFA requires, helping you gather the right documents and avoid common pitfalls that can cause delays. We use our industry-leading speed to move your application forward efficiently, keeping you informed at every stage. When you’re ready to take the next step, you can start your application with a team that’s committed to getting you to the closing table faster.
Expert Support and More Loan Options
Remember, the Time to Own loan is a second mortgage; you must first qualify for a primary CHFA mortgage. This is where our comprehensive support truly shines. We don’t just process your down payment assistance—we help you find the best primary mortgage for your financial situation. Our team will walk you through our full suite of loan programs to find a solution that fits your budget and long-term goals. We look at the complete picture to ensure your homeownership journey starts on the strongest possible financial footing.
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Frequently Asked Questions
What’s the catch with the loan forgiveness? There really isn’t a “catch,” but there is a commitment. The loan forgiveness is tied directly to you living in the home as your primary residence. Each year you live there, 10% of the loan is forgiven. If you sell the home, refinance, or it stops being your main home before the 10-year mark, you will have to pay back the remaining, unforgiven portion of the loan.
What if I’ve owned a home before? Can I still qualify? Yes, you might still be able to qualify. The program makes an exception for previous homeowners if the property you’re buying is located in one of Connecticut’s designated “targeted areas.” These are specific communities the state aims to support. As long as you don’t own any other property at the time of closing, this exception could be your path to eligibility.
Do I have to use the full $25,000, or can I get a smaller amount? You don’t have to take the maximum amount. The program is flexible, offering assistance that starts at $3,000 and goes up to $25,000. The amount you qualify for will depend on your specific financial situation and needs for the down payment and closing costs. The goal is to provide the right amount of help to make your home purchase possible.
What happens if I need to sell my home before the 10 years are up? Life happens, and plans can change. If you sell your home before the loan is fully forgiven, you will be responsible for repaying the remaining balance. For example, if you sell after six years, 60% of the loan would have been forgiven, and you would need to repay the remaining 40% at the time of the sale.
Is the homebuyer education course really necessary before I talk to a lender? Yes, completing an approved homebuyer education course is a required first step. It gives you a strong foundation of knowledge for the entire homebuying process and provides you with a certificate you’ll need for your application. Completing it beforehand shows you’re a serious buyer and ensures you’re ready to move forward once you connect with a CHFA-approved lender like us.
