See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 2, 2026
Homebuyer Programs in Groton, CT (2026)
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.
State Programs in Connecticut
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| CHFA Down Payment Assistance Program (DAP) | Repayable Loan | $3,000 to $15,000 | Yes | View → |
| CHFA Time To Own Forgivable Down Payment Assistance | Forgivable Loan | Up to $50,000 in high-opportunity areas; up to $25,000 in other areas | Yes | View → |
| HDF CT Forever Down Payment Assistance | Repayable Loan | Up to $28,000 | Yes | View → |
| HDF Live Where You Work | Zero-Interest Loan | Up to $25,000 | Yes | View → |
| HDF SmartMove Connecticut | Repayable Loan | Up to 25% of the purchase price | Yes | View → |
- Type:
- Repayable Loan
- Amount:
- $3,000 to $15,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $50,000 in high-opportunity areas; up to $25,000 in other areas
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to $28,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Up to $25,000
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to 25% of the purchase price
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity of Eastern Connecticut Homeownership Program | Zero-Interest Loan | No down payment required; affordable 0% interest mortgage | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- No down payment required; affordable 0% interest mortgage
- First-time only:
- Yes
How to Apply
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.
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.
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.
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.
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.
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
How much down payment assistance can I get in Groton?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay using these programs?+−
What homebuyer education is required?+−
Does Habitat for Humanity serve Groton?+−
Are there programs for buyers with disabilities?+−
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