You may not need a large down payment to buy a home in Colorado.

The Colorado Housing and Finance Authority (CHFA) offers mortgage programs that can help qualified homebuyers with their down payment and closing costs.

Whether you're buying your first home or you've owned a home before, CHFA may help make homeownership more affordable.

I help Colorado buyers compare CHFA with FHA, conventional, VA and other loan options so you know exactly what you qualify for, what your payment could look like and how much money you'll need at closing.

Get a personalized CHFA loan review and see your estimated payment, down payment assistance and cash to close.

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CHFA stands for the Colorado Housing and Finance Authority.

CHFA works with approved participating mortgage lenders throughout Colorado to offer home loans along with down payment and/or closing cost assistance. CHFA does not make mortgage loans directly to consumers. 

CHFA programs can work with several common mortgage types, including:

• FHA 
• Conventional 
• VA 
• USDA 

And here's something many buyers don't realize:

You do not always have to be a first-time homebuyer to use CHFA. 

👉 New to buying a home? Visit my Colorado First-Time Homebuyer Guide

This is usually the first question buyers ask.

CHFA currently offers two primary forms of down payment assistance.

Eligible borrowers may receive:

Up to the lesser of $25,000 or 3% of the first mortgage loan amount.

The grant does not have to be repaid.

Eligible borrowers may receive:

Up to the lesser of $25,000 or 4% of the first mortgage loan amount.

This is generally structured as a 0% deferred second mortgage with no monthly payments.

The second mortgage generally becomes due when you:

• Sell the home 
• Refinance 
• Pay off the first mortgage 
• No longer occupy the property as your primary residence 

It depends.

A grant sounds automatically better because it doesn't require repayment, but the entire mortgage structure matters, including the interest rate, monthly payment and upfront assistance.

I'll compare the options side by side so you can see the actual numbers before choosing.

Here's a simple example of why CHFA can make such a difference.

Suppose you're purchasing a $500,000 home and your first mortgage is approximately $482,500.

A 3% CHFA assistance amount would be approximately:

A 4% CHFA assistance amount would be approximately:

That money could potentially help cover eligible down payment and/or closing costs, depending on the CHFA program and your transaction.

Instead of simply asking:

“Can I afford a $500,000 home?”

we can determine:

Your estimated payment

Your CHFA assistance

Your estimated closing costs

Your estimated cash to close

That's much more useful when deciding whether you're ready to buy.

Example is for illustration only and is not a commitment to lend or guarantee of eligibility.

CHFA has several general requirements for homebuyers.

According to CHFA's current guidelines, borrowers generally need:

CHFA generally requires a 620 or higher mid credit score, subject to the requirements of the underlying mortgage program. 

Your income must fall within the applicable CHFA program's income limits.

The exact limit depends on the program you're using, so don't assume you make too much without checking.

CHFA generally requires at least a $1,000 borrower financial contribution toward the purchase.

Depending on the program, that contribution may be permitted to come from an eligible gift. 

Borrowers must complete a CHFA-approved homebuyer education course before closing. CHFA recommends completing the class early in the homebuying process. 

You'll still need to qualify for the FHA, conventional, VA, USDA or other first mortgage being used with your CHFA program.

This is one of the biggest misconceptions about CHFA.

CHFA has programs available to first-time and non-first-time homebuyers. Certain specialized programs may have additional first-time buyer requirements. 

So even if you've owned a home before, CHFA may still be an option.

If this will be your first home, I've also built a complete guide explaining the buying process:

👉 Colorado First-Time Homebuyer Guide

Some buyers may qualify for additional assistance through CHFA FirstGeneration.

CHFA currently advertises up to $25,000 in down payment assistance for eligible first-generation homebuyers.

Repayment is deferred until certain events occur, such as selling or refinancing the home, paying off the first mortgage or no longer using the property as your primary residence. 

FirstGeneration has additional eligibility requirements, so we'll review your situation to determine whether you qualify.

CHFA also has a dedicated Schools To Home program for eligible Colorado public school employees.

If you're a teacher or work for a Colorado public school, tell me that before we choose your loan program.

We'll determine whether Schools To Home or another CHFA option gives you the better financing structure.

This is exactly why I don't recommend choosing a mortgage program based solely on something you saw advertised online.

Your occupation, income and personal circumstances can change which assistance programs are available to you.

CHFA programs can be paired with eligible FHA financing.

FHA + CHFA can be especially useful for buyers who:

• Have limited savings 
• Want a low down payment 
• Have moderate credit 
• Need help with upfront costs 

However, FHA isn't automatically your best option just because you're using CHFA.

We'll compare it against conventional financing when appropriate.

Eligible CHFA programs can also be paired with conventional financing, including qualifying Fannie Mae and Freddie Mac loans. 

Depending on your credit and financial profile, conventional financing may provide a different payment or mortgage insurance structure than FHA.

We'll compare both before deciding.

Certain CHFA programs can be paired with eligible VA financing. 

However, eligible veterans already have access to one of the strongest mortgage programs available: the VA home loan, which can provide 100% financing.

So if you're VA eligible, we'll compare the options rather than automatically adding CHFA.

👉 Learn More About VA Home Loans

This is the number I want you to understand before you start shopping for homes.

Your total cash to close can include:

• Down payment 
• Closing costs 
• Prepaid property taxes 
• Homeowners insurance 
• Escrows 
• Other applicable costs 

Then we subtract things such as:

CHFA assistance

Earnest money you've already paid

Eligible seller concessions

Applicable lender credits

Other eligible credits

The result is your estimated cash to close.

That's the number that matters.

I'll help you understand both your monthly payment and estimated cash needed at closing before you start making offers.

Depending on your first mortgage and transaction, seller concessions may also be available.

This can potentially allow us to combine:

to reduce the amount of cash you need at closing.

But more isn't automatically better.

The goal is to determine how much assistance you actually need and structure the offer accordingly.

👉 Read More Colorado Mortgage & Homebuying Strategies

We'll review your income, credit, employment, assets and homebuying goals.

We'll determine whether CHFA, FHA, conventional, VA or another program gives you the best overall financing structure.

You'll receive an estimate of your:

Home price

Monthly payment

CHFA assistance

Cash to close

Once your financing is structured, you'll know your buying power before you start making offers.

You and your real estate agent can shop with a clear understanding of your price range and financing.

We'll make sure applicable CHFA requirements, including homebuyer education, are completed before closing.

Once the mortgage and CHFA requirements are complete, you'll close on your new Colorado home.

No. CHFA has options available to both first-time and repeat homebuyers, although individual programs may have additional eligibility requirements.

CHFA generally requires a 620+ mid credit score, subject to the requirements of the specific CHFA and mortgage program. 

CHFA's standard assistance options currently include a grant of up to the lesser of $25,000 or 3% of the first mortgage amount, or a second mortgage of up to the lesser of $25,000 or 4% of the first mortgage amount. 

It depends on which assistance you receive. CHFA's standard grant does not require repayment. Its standard DPA second mortgage is generally deferred with no monthly payment but must eventually be repaid after certain events such as sale, refinance or payoff. 

Yes. Your applicable income limit depends on the specific CHFA program.

CHFA generally requires a minimum $1,000 financial contribution toward the purchase. Your actual cash to close will depend on your entire transaction. 

Yes. CHFA-approved homebuyer education is required for borrowers using applicable CHFA purchase programs and must be completed before closing. 

Yes. CHFA's assistance programs may be used toward eligible down payment and/or closing costs. 

CHFA operates through a statewide network of participating lenders, subject to the requirements of the individual program, mortgage and property. 

You don't need to figure out CHFA on your own.

I'll help you determine:

✓ Whether you qualify for CHFA

✓ Which assistance options are available

✓ How much assistance you may receive

✓ Your estimated monthly payment

✓ Your estimated cash to close

✓ Whether CHFA or another mortgage program is the better option

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