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
- Th 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.
- Your total household income and the purchase price must be within their income limits.
- You must complete a CHFA homebuyer education class (in-person or online) prior to loan closing
- You must contribute a minimum 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