Hamden Economic & Neighbordhod Development logo

Down Payment Assistance Program

Down Payment Assistance Program is designed to assist low and moderate first time homebuyers.  The Down Payment Program will assist with matching funds up to $5,00 to support closing costs and down payment


  • Applicants must purchase a house in the target areas of Hamden - i.e., Highwood, State Street or Hamden Plains.  Click here to see listing for specific streets.
  • No corporate or commercial entity is eligible
  • The purchase must be a single family (detached) or tow to four-family dwelling intended for owner occupancy.  Investment properties are not eligible.
  • Applicants cannot exceed income and asset limits as established by the U.S. Department of Housing and Urban Development.  Click link to see Income Requirements.
  • Applicants must not have ownership in any residential property within three (3) years of submitting an application.
  • All taxes owned by applicant (including motor vehicle registered in the Town of Hamden) must be current at the time of application submittal.
  • The Town of Hamden does not discriminate on the basis of race, color, creed national origin, gender or disability.


  • Property must be covered by homeowner's insurance (i.e., hazard, property, fire and liability) and flood when applicable.
  • Title to the property must be in the name of the applicant(s)
  • Applicants must repay the interest free loan/second mortgage upon sale or transfer of the property, subject to terms and conditions of the grant commitment.
  • Grant will not be used for repayment of loans, liens, attachments, judgements or other debt
  • Applicants must provide proof of participation in an approved homeownership counseling program
  • All documentation for priority consideration must be submitted with application.  The Department of Community Development will not consider applications without supporting documents.


Applicants approved for funding who are purchasing a house built prior to 1978 must arrange for a VISUAL LEAD ASSESSMENT of the property by a CERTIFIED LEAD PAINT INSPECTOR.  The Officer of Housing and Neighborhood Development will pay for this inspection.  Where there is evidence of defective paint surfaces (chipping, peeling, flaking, etc.), the applicant is responsible for its correction in accordance with HUD approved standards.

All properties built before 1978 must be granted a LEAD CLEARANCE by a CERTIFIED LEAD PAINT INSPECTOR and a copy of the notification must be received by the Department of Community Development in order for the release of funds. Failure to comply with this requirement and any other LEAD and housing code regulations will void the Town's grant commitment. Click link for Brochure - Protect Your Family From Lead In our Home - EPA


  • Income of all persons, related or otherwise living in the applicant's household will be included in determining gross income.  Total income must not exceed 80% of the median family adjusted gross income (AGI) for the New Haven/Meriden MSA as adjusted for family size and illustrated below.

  • Income includes employment wages, unemployment benefits, annuity, pension, disability payments, all forms of social security payments, welfare, alimony, child support, military, stipend, interest income, dividends from investments and savings, rental income, workers' compensation, income from family, friends, roomers and boarders, and any other income source not mentioned..
  • Gross income shall be verified at time of application via the most recent tax return filed with the Internal Revenue Service (IRS).  However, other documentation may be requested..
  • Income of full-time students will be excluded from the AGI if acceptable documentation of student status is provided at the time of application.
  • The following credits will be awarded to the AGI:
    • $500 for each minor child (under age 18)
    • $500 for elderly household member (62 years and over)
    • $500 for each disabled household member (those declared disabled under Social Security Standards)
    • $500 for veteran or military status
  • Applicants liquid assets after closing must not exceed $20,000 in the aggregate.  Assets include, but are not limited to:
    • Cash held in savings and checking accounts, safety deposit box, etc.
    • Trusts, except irrevocable trusts outside any family members control
    • Equity in real estate or other capital investments.  (Equity is determined by the current market value as determined by the Department of Community Development less the unpaid balance of loan(s) against the property.)
  • Assets do not include approved and dedicated pension funds, life insurance, IRAs, 401Ks, or other form of retirement accounts
  • The applicant shall provide such documentation of all items requested for processing the application.  The receipt of a signed application authorizes the Town of Hamden to verify any information provided, including but not limited to credit history.


  • Qualified applicants are informed in writing via a Pre-approval Notification
  • Pre-approval Notifications are valid for 6 months from the date of which the document is signed.
  • Applicants are required to submit a Real Estate Purchase and Sales agreement before the expiration of the Pre-approval Notification.  (It is the applicant's responsibility to locate an eligible property and secure his/her mortgage from a reputable lending institution)
  • Qualified applicants may then be granted a commitment upon meeting the requirements of the Pre-approval Notification.