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Get Matched Free →Milford, CT Down Payment Assistance Programs & Homebuyer Grants (2026)
Milford homebuyers have access to several programs that can significantly reduce the upfront costs of purchasing a home. The city offers its own Direct Home Ownership Program providing up to $30,000 in 0% interest deferred assistance, and Connecticut state programs add thousands more in potential savings. Whether you are buying your first home on the shoreline or relocating to one of Milford's many family-friendly neighborhoods, these programs can make homeownership more affordable.
Top Homebuyer Programs in Milford
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Milford Direct Home Ownership Program | Deferred Loan | Up to $30,000 | Yes | View → |
| 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
| Habitat for Humanity of Greater New Haven Homeownership Program | Zero-Interest Loan | No down payment required ($600 contribution); 0% interest 25-year mortgage | Yes | View → |
| 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:
- Deferred Loan
- Amount:
- Up to $30,000
- First-time only:
- Yes
- 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
- Type:
- Zero-Interest Loan
- Amount:
- No down payment required ($600 contribution); 0% interest 25-year mortgage
- First-time only:
- Yes
- 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
How to Apply
Applying for down payment assistance in Milford involves a few straightforward steps. Here is how to get started:
- 1. Check Your Eligibility:
Review the income limits and requirements for each program. Most programs require that your household income falls at or below 80% of the Area Median Income.
- 2. Complete a Homebuyer Education Course:
Most programs require completion of a HUD-approved homebuyer education course before you can receive assistance. Contact the Milford Community Development Office or visit HUD's website for approved providers in your area.
- 3. Contact the Program Administrator:
For the Milford Direct Home Ownership Program, contact Lauren Kelly, CDBG Administrator, at (203) 701-4479 at Milford City Hall. For state programs, reach out to CHFA at (860) 571-3502.
- 4. Gather Documentation:
Prepare proof of income (pay stubs, tax returns), identification, bank statements, and any other documents the program requires.
- 5. Work with an Approved Lender:
For CHFA programs, you must work with a CHFA-approved lender who can help you apply for state-level assistance alongside your mortgage.
- 6. Submit Your Application:
Complete and submit all required forms and documentation. The Milford program requires a minimum $2,000 contribution from your own funds.
- 7. Close on Your Home:
Once approved, the assistance is applied at closing to cover your down payment and eligible closing costs.