NEW HAVEN, Conn. (WTNH) — Governor Ned Lamont announced on Monday the launch of a new program offering down payment assistance to low and moderate-income homebuyers in the state.

The program is now accepting applications. According to the governor’s office, it provides a new source of funds for down payment and closing costs for those applying to the Connecticut Housing Finance Authority’s (CHFA) First-Time Homebuyer Program.

“We all know one of the greatest obstacles to homeownership is having a down payment and covering closing costs,” Lamont said. “This program breaks new ground, offering homebuyers the opportunity to secure their first home with help of an innovative, forgivable loan program. It will bring the dream of homeownership to life for thousands of Connecticut residents.”

The program is available to eligible applicants securing a CHFA first mortgage loan to purchase their first home. Applicants can access CHFA’s existing down payment assistance program concurrently.

“The Time to Own loan is structured as a ten-year, 0% non-amortizing loan, with one-tenth of the principal amount forgiven on the anniversary of the loan closing each year until the loan is fully forgiven,” the governor’s office said.

The loan is based on multiple eligibility requirements, including a borrower’s financial needs, their ability to repay mortgage obligations and their eligibility under CHFA’s First-Time Homebuyer Program, open to new homebuyers or people who have not owned a home in the last three years.

To learn more about Time to Own, click here or call CHFA’s homeownership hotline at 1 (844) 281-4663.