What 'Forgivable' Actually Means
Stay in your first Connecticut home for ten years and the state forgives the entire $25,000 it gave you toward the down payment. That's not a promotion. That's a real program - currently active, currently funded, and currently invisible to most of the people who qualify for it.
The Connecticut Housing Finance Authority runs it. Time to Own. Up to $25,000 in forgivable down payment assistance. Zero percent interest. No monthly payment. And every year on the anniversary of your closing date, another ten percent of the balance disappears - so by year ten, you owe nothing.
Most people hear "forgivable loan" and go looking for the catch.
There is one, and I'll get to it. But the basic structure is exactly what it sounds like: Connecticut is helping residents get into homes and betting that people who stay put will contribute more to the state than the assistance cost. As of late May 2026, over $22 million remains in the current program pool. That's real money - but it's a finite pool. When it runs out, it runs out. Programs like this don't always get renewed on the same terms.
What the Program Covers - and How the Forgiveness Works
Time to Own isn't just for the down payment. The assistance can cover up to 20% of the purchase price toward the down payment, plus an additional 5% toward closing costs. Buyer closing costs in Connecticut typically run 2-5% of the purchase price - knowing that a chunk of that is covered changes what a first-time buyer actually needs to bring to the table.
$25,000 maximum Time to Own assistance ($3,000 minimum) - forgivable over 10 years at 10% per year
The 0% interest, no monthly payment structure is what makes this different from a regular second mortgage. You pair the Time to Own loan with a CHFA first mortgage through a CHFA participating lender. While you're living in the home, the assistance isn't generating interest charges or touching your monthly payment. It sits there, quietly shrinking by 10% each year.
One thing worth understanding before you get excited: if you sell, refinance, or move before year ten, the unforgiven portion is due at that closing. Stay five years - half is already forgiven, you owe the other half. Stay eight years - you owe the remaining 20%. Stay the full decade - you owe nothing. The math is clean. And it rewards the thing most first-time buyers plan to do anyway: stay in their first home for a while and get established.
Worth knowing: The Time to Own pool had over $22 million remaining as of late May 2026. Funds are reserved on a first-come basis through CHFA participating lenders. There's no guarantee the program will be refunded at the same level when this pool depletes.
Who Qualifies - Three Things to Check
Three gates. Pass all three and you're in range for a conversation with a CHFA lender.
Connecticut residency. You must have been a CT resident for the past three years. Not just planning to buy here - actually living here. This is separate from the first-time buyer question.
First-time buyer status - or a targeted area. CHFA defines first-time buyer the same way most programs do: you're not currently owning a primary residence. But here's the piece I'd say most people miss: the Time to Own program is also open to non-first-time buyers if you're purchasing in a CHFA-designated targeted area. If you've owned before but are looking at homes in certain CT markets, it's worth asking a CHFA lender whether the area you're targeting qualifies. You might not be locked out of this the way you think.
You also cannot own any other properties at the time of closing. One home, this home.
Income and purchase price limits. These are set based on the Area Median Income for the specific geography and change periodically. Don't trust a figure from an old blog post or a Reddit thread. Call a CHFA participating lender and ask directly: given my income, my household size, and the area I'm targeting, do I qualify right now? If you're still narrowing down where to look, the breakdown of the best CT towns for first-time buyers under $400K maps well against where CHFA purchase price limits tend to work. That one conversation with a lender will tell you more than hours of research will.
Getting This Done in CT's Actual Market
Approval is not the same as being competitive. Those are two different problems.
CHFA offers can win in multiple-offer situations - I've seen it happen, and it's not rare. But only when the offer is put together correctly. A lot of buyers, and honestly a fair number of agents, treat CHFA financing as weaker by default. That's not accurate. What is accurate is that how the offer gets presented to the listing agent matters, and an agent who has never submitted a CHFA offer reads differently to a seller's side than one who does it regularly.
I'd tell you right now: if you're using Time to Own, make sure your agent has actually done this before. Ask directly. This isn't the offer to learn on.
CHFA approvals take longer than conventional loans. Not dramatically - but build the extra time into your plan. If a seller wants to close in 30 days, the timeline is going to be tight. Know your financing window before you fall in love with a house that has a hard deadline.
And get fully pre-approved before you tour anything. Sellers in Meriden, Southington, Glastonbury - anywhere in CT that moves fast - expect full pre-approval, sometimes with full underwriting already done. Pre-qualification is not enough. I've watched buyers lose houses they wanted because the sellers chose a cleaner offer at the same price. Get your financing in order first. That's for sure.
What to Do Before You Start Searching
Call a CHFA participating lender before you look at a single listing. Before you schedule a tour. Before you do anything else.
Ask one specific question: am I eligible for the Time to Own program? Give them your income, your household size, how long you've lived in CT, and the area you're targeting. That conversation takes twenty minutes and answers more than six hours of online research will. If Time to Own is in play, it changes how you think about your budget entirely. If it isn't - income, residency, area - you still have options.
Other programs that exist for CT first-time buyers:
FHA loans: 3.5% minimum down payment with a 580+ credit score
USDA Rural Development: zero down in eligible rural CT areas - more towns qualify than people expect
VA loans: zero down for eligible veterans and active-duty service members
Local programs: some CT municipalities have their own assistance - ask the town directly
Not everything stacks. A CHFA participating lender can map out exactly which combination works for your situation. Basically, what you want to know before you do anything else is what tools are actually in play for you.
The buyers I've watched struggle most aren't the ones who couldn't find a house. They're the ones who showed up without knowing what they had available - and lost months figuring it out mid-search. When you do close, the checklist nobody hands you at closing is worth having ready before that day comes.
Bottom line: Call a CHFA participating lender before you tour a single home. Ask specifically about Time to Own eligibility. Get fully pre-approved. The money is there, the pool is active - find out if your name belongs on it.
Frequently Asked Questions
Does the Time to Own assistance ever need to be paid back?
Only if you sell, refinance, or move before the ten years are up. The loan forgives at 10% per year on the anniversary of your closing date. If you stay the full ten years, the entire balance is forgiven and you owe nothing. If you leave early, the unforgiven portion is due at that closing. Stay five years and you owe half. Stay eight years and you owe 20%. The longer you stay, the less you owe.
What is the maximum and minimum amount for Time to Own assistance?
The program provides a minimum of $3,000 and a maximum of $25,000. It can be used toward both the down payment (up to 20% of the purchase price) and closing costs (up to an additional 5%). The exact amount depends on your purchase price, what you need, and program eligibility. A CHFA participating lender will work out the specific numbers based on your situation.
Do I have to be a first-time buyer to use Time to Own in Connecticut?
Not necessarily. The program is open to first-time buyers, but it's also available to non-first-time buyers purchasing in CHFA-designated targeted areas. You do need to have been a Connecticut resident for the past three years, and you cannot own any other properties at the time of closing. If you've owned a home before, ask a CHFA participating lender whether the area you're targeting qualifies - you may still be eligible.
How do I apply for the Time to Own program in Connecticut?
You apply through a CHFA participating lender - not your regular bank unless it's on the CHFA list. The Time to Own loan is paired with a CHFA first mortgage, and the process runs through the same lender. Start at CHFA's website to find participating lenders, or call the CHFA Homeownership Department at (860) 571-3541. Do this before you start seriously touring homes, not after.
Is the Time to Own program still accepting applications?
As of late May 2026, the program is active with over $22 million remaining in the current funding pool. Funds are reserved on a first-come basis through CHFA participating lenders. The pool is finite - it depletes as loans are reserved and isn't guaranteed to be refunded at the same level when it runs out. If you're eligible, sooner is better than later.