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Homebuyer Programs in Groton, CT (2026)

Last updated April 2, 2026 | Population: 39,000 | Median home price: $385,000 | Est. closing costs: $7,500 - $11,500

Skyline of Groton, CT

Groton is a southeastern Connecticut town in New London County, home to the U.S. Naval Submarine Base and a median home price of approximately $385,000. While Groton does not currently offer a city-funded down payment assistance program, buyers here benefit from several strong state programs including CHFA Time To Own (up to $50,000 forgivable), CHFA DAP (up to $15,000), HDF CT Forever (up to $28,000), and HDF Live Where You Work (up to $25,000 at 0% interest for those buying in the town where they work). Habitat for Humanity of Eastern Connecticut also serves Groton with its affordable homeownership program. By combining state and nonprofit resources, eligible buyers in Groton can access significant assistance toward their home purchase.

Top Homebuyer Programs in Groton

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Habitat for Humanity of Eastern Connecticut Homeownership Program
Type:
Zero-Interest Loan
Amount:
No down payment required; affordable 0% interest mortgage
First-time only:
Yes
CHFA Down Payment Assistance Program (DAP)
Type:
Repayable Loan
Amount:
$3,000 to $15,000
First-time only:
Yes
CHFA Time To Own Forgivable Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to $50,000 in high-opportunity areas; up to $25,000 in other areas
First-time only:
Yes
HDF CT Forever Down Payment Assistance
Type:
Repayable Loan
Amount:
Up to $28,000
First-time only:
Yes
HDF Live Where You Work
Type:
Zero-Interest Loan
Amount:
Up to $25,000
First-time only:
Yes
HDF SmartMove Connecticut
Type:
Repayable Loan
Amount:
Up to 25% of the purchase price
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. Review income limits for New London County under the CHFA programs. Household income must fall within program guidelines, which vary by family size and area median income.

  2. Step 2:

    Complete homebuyer education. Attend a free CHFA-approved homebuyer education course. Locally, contact the New London Homeless Hospitality Center's Housing Counseling Agency at (860) 501-9900 ext. 103 to find classes in southeastern Connecticut.

  3. Step 3:

    Get pre-approved for a mortgage. Work with a CHFA-approved lender such as Chelsea Groton Bank to get pre-approved for a CHFA first mortgage, which is required to qualify for the Time To Own and DAP down payment assistance programs.

  4. Step 4:

    Explore additional assistance. Contact the Housing Development Fund (HDF) at (203) 388-0830 to learn about CT Forever, Live Where You Work, and SmartMove programs that can be layered with your CHFA mortgage.

  5. Step 5:

    Find a home within program limits. Search for properties in Groton that meet CHFA purchase price limits for New London County. Your lender can confirm the current maximum.

  6. Step 6:

    Submit your application and close. Once you have a signed purchase contract, your lender will submit your CHFA mortgage and DPA applications together. Expect the process to take 45 to 60 days from application to closing.

Frequently Asked Questions

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