How to Get a CHFA Colorado Loan
CHFA offers home purchase loan programs, grants, second mortgage loans, and other help for closing cost and down payment assistance. To qualify for a CHFA loan potential homeowners:
- Cannot have an income that exceeds limits
- Must have a credit score of 620 or higher
- Must attend CHFA-approved homebuyer education course prior to closing on loan. Classes can be taken in-person and online.
- Must contribute a minimum payment of $1000 toward home purchase
- Qualifications vary by program, housing size, income, and more. Contact The Meissner Group directly to find out what you qualify for, and what programs would work best for your situation.
CHFA Participating Lenders
CHFA loans are available through their network of qualified participating lenders. CHFA’s participating lenders work with Colorado residents and CHFA to help determine the best program and housing options for applicants. Participating lenders can further explain your loan process, unique qualifications, and what type of loan you might qualify for. The lenders help make the process much easier on potential homeowners.
If you’re looking for a specific lender , want to browse lenders by region, or need an overview of different lender options please visit CHFA’s participating lender page.
CHFA is more than a money lender, they’re an overall resource for potential homebuyers. A large part of CHFA is their homebuyer education classes to help potential homeowners learn about their programs, and about purchasing Colorado real estate.
CHFA hosts both in-person and online classes. In-person classes are required for all borrowers but don’t cost anything and are available throughout the state. Online classes are intended for borrowers and cost $99 per borrower and $50 for co-borrowers. Online classes require a post-class housing counseling session which is completed by phone once the course is complete.
After completing the CHFA education course and post-class housing counseling session participants will receive a certificate of completion. The homebuyer education certificate is mandatory for closing CHFA loans. Homebuyers must go under contract within 12 months of completing the education course for full benefits.
Though classes are mandatory to qualify for a loan, the financial health tips and other recommendations you learn in your class will give you a financial leg-up to make healthy financial choices with your home. You’ll know much more about your loan and home than any of your friends making traditional real estate purchases.
CHFA Income Limits
Various programs have different income limits by county. The full list of income limits for different programs by county in available at the CHFA income limits page. We’ve provided a basic overview of income limits by program below:
- CHFA Preferred: Very Low Income: $34 – $56,000
- CHFA Preferred: $54 – $74,000
- CHFA SmartStep: $120,100 Income limits for the CHFA Smartstep program are the same across all Colorado counties.
- CHFA FirstStep: $82-$120,100
- CHFA FirstStep is the most varied of CHFA loan programs dependent on household size, targeted income limits, non-targeted income limits, and more.
If you want to know the exact income limits for a program or household size, it’s a recommended you reach out to CHFA directly by phone or email.
CHFA Down Payment Assistance
Homebuyers utilizing first time homebuyer programs are eligible for assistance on down payments. The Down Payment Assistance Grant loans up to 3% of your first mortgage and is not required to be repaid.
For a second mortgage, eligible participants can receive up to 4% of your first mortgage. The repayment of a second mortgage loan can be deferred until certain criteria is met like payoff of first mortgage or refinance of the home.
CHFA Affordable Renting Options
CHFA encourages affordable housing and rentals across the state. CHFA offers tax credits, loans, and other programs to help developers build new or renovate existing affordable housing. CHFA also offers technical assistance to property residents, staff, and landlords who own low-income multi-family housing units.
CHFA Foreclosure Prevention
Foreclosure is bad for homeowners and bad for the local economy, which is why CHFA has been on the forefront of foreclosure prevention since its founding. As part of CHFA’s foreclosure prevention efforts, the organization has been awarded close to $13 million in its efforts to combat foreclosure.
With the help of funding CHFA has partnered with nonprofit counseling outfits across the state to provide free professionally led foreclosure mitigation counseling. To date CHFA’s foreclosure prevention efforts have helped thousands of Colorado families avoid the disaster of foreclosure.
If you are at risk of foreclosure, you’re encouraged to connect to one of CHFA’s foreclosure prevention partners before the situation becomes unmanageable. You can find a full list of housing partners on the foreclosure prevention resource page.