# Buying Your First Home in CT or MA: Down Payment Assistance Guide By Lynnell J. Veilleux (@lynnelljveilleux) · Published 2026-11-11 Canonical: https://voce.com/@lynnelljveilleux/buying-first-home-down-payment-assistance-guide-u9niyp --- The down payment is the biggest single barrier between you and a first home in Connecticut or Massachusetts — but in both states, the state housing agencies and local programs can erase much of it. In 2025 alone, more than **2,700 Connecticut buyers used Time To Own**, a forgivable grant program that requires no repayment, and Massachusetts offers up to **$30,000 in down payment assistance** in every city and town. Here's how each state's flagship programs work, what you'll need to qualify, and how to decide where your money goes further. #### Key Takeaways - Connecticut's Time To Own gives first-time buyers forgivable grants up to $25,000 that never need repayment - Massachusetts offers fixed down payment assistance of $25,000–$30,000 across every city and town - Both states cap eligibility by Area Median Income (AMI), credit score, and first-time-buyer status - You must pair DPA with a state-backed first mortgage — and complete approved homebuyer education - Local grants from cities like Boston, Hartford, and Worcester stack on top of state programs ## Why down payment assistance matters in 2026 Down payment assistance (DPA) is money — a grant or a low-interest second loan — that a government agency gives you to cover part or all of your down payment and closing costs. In a market where a median Connecticut home costs around **$309,000**, a 20% down payment would demand more than $60,000 in cash; even the 3% many first-time buyers put down runs into the thousands. DPA closes that gap for households whose income meets program limits. Both New England states run the assistance through their housing finance authorities. Connecticut's CHFA (Connecticut Housing Finance Authority) administers the Department of Housing's Time To Own program, and Massachusetts' MassHousing runs its own statewide DPA products. The rules, income ceilings, and forgiveness terms differ enough that where you buy can meaningfully change what you pay. ## Connecticut: the forgivable Time To Own grant Connecticut's strongest tool is **Time To Own**, a forgivable down payment assistance grant administered by CHFA for the state's Department of Housing. In 2025 CHFA helped more than **2,700 first-time homebuyers** use Time To Own toward their purchase, out of nearly 3,800 buyers assisted overall ([CHFA](https://www.chfa.org/assets/1/6/2025_Annual_Report_-_Final.pdf)). The headline figure: the grant can reach **$25,000**, with no repayment as long as you stay in the home. The amount is scaled to your income — households at or below **80% of Area Median Income (AMI)** qualify for up to the full $25,000, while those earning between 80% and 100% of AMI can receive up to **$18,750** ([CHFA program outlines](https://www.chfa.org/assets/1/19/000_LPO_Bond_Final_Rev_10.5.2026_FINAL2.pdf)). Borrowers above 100% of AMI are not eligible for Time To Own. Time To Own covers up to **20% of the down payment and up to 5% of closing costs**, and it pairs only with a CHFA first mortgage. The loan itself must sit junior to that first mortgage, and the minimum grant is $3,000 ([CHFA program outlines](https://www.chfa.org/assets/1/19/000_LPO_Bond_Final_Rev_10.5.2026_FINAL2.pdf)). ![A grey shingled house with a blue door](https://images.unsplash.com/photo-1787602420662-a3852449e402?crop=entropy&cs=tinysrgb&fit=crop&fm=jpg&ixid=M3w5Mzk0NDN8MHwxfHNlYXJjaHwxfHxjaGFybWluZyUyME5ldyUyMEVuZ2xhbmQlMjBzdWJ1cmJhbiUyMGhvbWUlMjBhdXR1bW58ZW58MHwwfHx8MTc5NDI2ODU3MXww&ixlib=rb-4.1.0&q=80&w=1200&h=630) ### Who qualifies and what else to know To use Time To Own, you must be a first-time homebuyer, a Connecticut resident for at least the three consecutive years before closing, and buying within CHFA's sales-price limits for the town where the property sits ([CHFA program outlines](https://www.chfa.org/assets/1/19/000_LPO_Bond_Final_Rev_10.5.2026_FINAL2.pdf)). A homebuyer education certificate through a CHFA-approved counseling agency is required, and a spouse of an existing CHFA borrower generally cannot use the program on a separate purchase ([CHFA bulletin](https://www.chfa.org/assets/1/19/Bulletin_286_-_Time_to_Own_Guideline_Updates3.pdf?14855=)). Because CHFA revised its policy in early 2024, you cannot combine Time To Own with CHFA's separate Down Payment Assistance Program (DAP) loan — in 2025, **818 borrowers** used that amortizing DAP loan instead, with a median amount of **$11,674** ([CHFA](https://www.chfa.org/assets/1/6/2025_Annual_Report_-_Final.pdf)). If you don't qualify for Time To Own's income cap, DAP is the fallback. ## Massachusetts: fixed statewide assistance up to $30,000 Massachusetts takes a different approach: instead of one forgivable grant, MassHousing offers fixed-dollar down payment assistance available in **every city and town** in the state. The headline is **up to $30,000** of help for qualified first-time buyers, delivered as a second mortgage with a 0% deferred interest rate — meaning you make no payments on it until you sell, refinance, or pay off your first mortgage (MassHousing). ![A MassHousing down payment assistance program graphic](https://convex.voce.com/api/storage/cbc3ba83-cda8-4f46-a14d-bb7de41c75cc) The current standard is a fixed **$25,000** 0%-deferred loan for borrowers earning up to **135% of Area Median Income** ([MassHousing announcement](https://www.masshousing.com/wp-content/uploads/Emasshousing/Announcements/memo_03-27-2026.pdf)). A separate Workforce Advantage product pairs a deferred DPA loan with a discounted-rate first mortgage, reserved for the lowest-income households ([MassHousing product matrix](https://www.masshousing.com/wp-content/uploads/Emasshousing/MassHousing-HO-Product-Matrix.pdf)). Because the DPA is a **second mortgage** rather than a grant, it's repaid when you sell or refinance — but at 0% interest and deferred payment, it costs you nothing while you own the home. The tradeoff vs. Connecticut: your assistance is a loan you eventually return, not money you keep. ### Qualifying in Massachusetts Every MassHousing DPA loan requires a MassHousing first mortgage and an approved homebuyer education course. MassHousing's credit score requirements vary by loan type, property type, and loan-to-value ratio, with minimums ranging from **640 to 700** ([MassHousing FAQ](https://www.masshousing.com/buy-a-home/homebuyer-faqs)). Household income drives which product you get: up to 80% of AMI unlocks the cheaper 2% amortizing loan, while 80–135% of AMI lands the 3% version or the 0%-deferred $25,000 option ([MassHousing product matrix](https://www.masshousing.com/wp-content/uploads/Emasshousing/MassHousing-HO-Product-Matrix.pdf)). MassHousing's reach in 2025 was substantial: **3,123 loans totaling $529.3 million** in financing, with 68% of total loans going to borrowers below 100% of AMI ([MassHousing training](https://www.masshousing.com/wp-content/uploads/Emasshousing/Emasshousing-Training/emh-product-training.pdf)). ## Connecticut vs. Massachusetts: where does your dollar go further? The two states reward different buyer profiles, so the better program depends on your income and how long you plan to own. Connecticut's Time To Own is the rare grant that **never needs repayment** — up to $25,000 of free money, as long as your household earns no more than **100% of AMI** ([CHFA program outlines](https://www.chfa.org/assets/1/19/000_LPO_Bond_Final_Rev_10.5.2026_FINAL2.pdf)). Massachusetts trades that forgiveness for higher income ceilings and a larger reach: its 0%-deferred DPA lets you earn up to **135% of AMI** and still get $25,000, but that money is a second mortgage you repay when you sell or refinance. Feature Connecticut Time To Own Massachusetts DPA Maximum assistance Up to $25,000 Up to $30,000 (Workforce Advantage) Forgiveness Forgivable — no repayment Second mortgage, repaid on sale/refinance Income ceiling Up to 100% of AMI ([CHFA](https://www.chfa.org/assets/1/19/000_LPO_Bond_Final_Rev_10.5.2026_FINAL2.pdf)) Up to 135% of AMI Rate 0% deferred 0%–3% depending on product Best for Buyers below 100% AMI who want free money Higher earners who can repay later If you're a household near the median income for your Connecticut town, Time To Own is almost certainly the better deal — free money you keep. But if your income pushes past 100% of AMI, Massachusetts is the more realistic path, because its ceiling is higher and its assistance is far more generous than Connecticut's DAP loan fallback ([MassHousing product matrix](https://www.masshousing.com/wp-content/uploads/Emasshousing/MassHousing-HO-Product-Matrix.pdf)). ## Local grants that stack on top Before you settle on one program, ask three questions: Does your city run a local grant or forgivable loan? Does it combine with the state program you're eyeing? And does your income land you in the lower or higher AMI band, which changes both the amount and the interest rate? An approved lender who works with CHFA or MassHousing daily can run your numbers against both state and local options in one conversation. ## Steps to apply The path is consistent in both states. **First**, pick a lender that participates in CHFA or MassHousing programs — the agencies publish approved lender lists, and not every mortgage company handles these loans. **Second**, complete a state-approved homebuyer education course; it's mandatory in both states and typically takes a few hours. **Third**, gather your tax returns, pay stubs, and asset statements — Connecticut requires three years of tax returns and proof of three years of residency for Time To Own ([CHFA](https://www.chfa.org/assets/1/6/2025_Annual_Report_-_Final.pdf)). **Fourth**, have the lender run your income against the AMI limits and sales-price caps for the town you want, because those determine the exact grant or loan you qualify for. ![A MassHousing down payment assistance program graphic](https://www.mhp.net/assets/graphics/program-differences-EDITED.png) ?Frequently Asked Questions3 questions 1Can I use down payment assistance with a low down payment? Yes, in both states. You can typically receive assistance even when putting down as little as 3%, and the DPA covers part of the down payment plus a share of closing costs — in Connecticut, Time To Own pays up to 20% of the down payment and up to 5% of closing costs. 2Do I have to use a state-approved lender? No. DPA in both states is tied to a CHFA or MassHousing first mortgage, so you must use one of their participating lenders and financing products. A conventional lender that doesn't work with the state agency cannot originate these loans. 3How do I know which AMI band I'm in? Check your household income against your town's Area Median Income. In Connecticut, Time To Own cuts off at 100% of AMI; in Massachusetts, MassHousing assistance extends to 135% of AMI. Your lender runs this calculation as part of your application. ## The bottom line The gap between renting and owning in Connecticut and Massachusetts is narrower than it looks once you know the programs. Connecticut's Time To Own gives qualifying first-time buyers **up to $25,000 that never has to be repaid**, and Massachusetts matches that with **up to $30,000** in 0%-deferred assistance available statewide. For households under the income ceilings, the question isn't whether help exists — it's which state's terms fit your income and how long you plan to stay. Start the conversation with a CHFA- or MassHousing-approved lender this week. Bring your income, your target town, and your three years of tax returns, and ask directly which grant or loan you qualify for. The education course, the income check, and the paperwork take time — but they're the difference between a mortgage you stretch for and a home you can actually afford.