We are lucky in Colorado to have a great down payment assistance program offered by the Colorado Housing and Financing Authority, or CHFA, that can allow you to put as little as $1000 down to purchase a home, if you meet their qualifications. These are their two down payment assistance options and their general requirements.
Grant Program
- The Grant program will cover up to 3 percent of your first mortgage loan to help cover some of your down payment and/or closing costs
- You will not have to repay this grant.
- Higher interest rate on your mortgage then with the Silent Second option.
- Total household income and the purchase price must be within their income limits.
- You have to complete a CHFA homebuyer education class (in-person or online) prior to loan closing
- There is a minimum contribution of $1,000 toward the purchase of a home
- You must have a mid-credit score of 620 or higher
Silent Second
- Can use FHA or Conventional first loan
- This option will provide up to 4% of first mortgage
- Lower interest rate than the Grant program
- You must have a mid-credit score of 620 or higher
- Repayment of loan balance deferred until certain events, such as payoff of your first mortgage, or the sale or refinance of the home.
- Total borrower income must not exceed CHFA’s income limits
- Clients must take class (in-person or online) prior to loan closing
- Min $1000 contribution to contract
- 35 days to close average
Click Here to Speak with a CHFA Participating Lender
More Programs
There are also many other down payment programs that may work for you and your situation. Here are a few additional resources to help you find other down payment or buyer assistance programs in Colorado:
HSH.com – A state-by-state guide to the available buyer assistance programs
Downpaymentresource.com – A website where you input answers to questions about you and your situation and it will tell you what programs are available for you.
Once you have spoken with a lender and found out which down payment assistance program is right for you, make sure to review our guide The Home Buying Process for the next steps towards becoming a homeowner!
