The "Homes for CT" loan program is being revised through General Assembly Raised Bill No. 5314, which introduces several key changes to the existing law. Notably, the bill stipulates that loans made by eligible financial institutions must bear interest at a rate that does not exceed the prime rate published by The Wall Street Journal, replacing the previous reference to the applicable rate from the Federal Home Loan Bank of Boston. Additionally, the bill allows for a loan-to-value ratio that exceeds typical underwriting standards and clarifies the terms under which loans can be secured by a mortgage deed on residential buildings.

Furthermore, the bill modifies the provisions related to loans and grants-in-aid issued by the Connecticut Housing Finance Authority. It allows the authority to make loans or issue grants-in-aid to eligible borrowers, which can be amortizing, deferred, or forgivable regarding principal and interest. These loans will be subordinate to those made by eligible financial institutions and will be subject to terms established by the authority, including loan amounts and interest rates. The changes are set to take effect on July 1, 2026.