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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
- $510k loan limit (2020)
Click here to view CHFA’s website for more information or to register for the class
Click here to view CHFA’s current income limits
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!