It goes without saying that home ownership is a key component in the American way of life. It provides equity and lets us enjoy the American dream while at the same time giving us peace of mind. Although it’s often recommended to purchase property as an investment, there’s no denying that the home loan qualification process can be a bit challenging. And that’s where the CHFA or Colorado Housing and Finance Authority can help, especially if you’re a first-time home buyer.
What does the CHFA do?
The mission of the CHFA is to make housing more affordable and promote economic development across Colorado. They provide financial resources that help to strengthen home ownership as well as businesses and rental housing. Furthermore, they strive to make home ownership a reality for first-timers by offering education classes as well as technical assistance.
The CHFA was established in 1973 and since that time, they have invested over $10 billion in the Centennial State. The resources they’ve provided have helped:
- 3,670 businesses to access enough capital to create nearly 50,000 jobs
- 84,472 Coloradoans purchase a home
- 97,761 households throughout the state with home buyer education classes
- to develop or preserve 58,628 affordable rental homes
CHFA Finance Programs
Although individual borrower qualifications vary based on the type of program, certain ones can be applied in all or most cases. These include:
- Borrower contribution of $1,000 minimum required on most programs (this may be in the form of a gift)
- Home buyer education required with CHFA MCC’s (CHFA Mortgage Credit Certificates) and home purchase programs
- NO requirements for first-time home buyers on most home loan programs
Closing Costs and/or Down Payment Assistance Options
Prospective buyers that use one of the CHFA’s first home mortgage programs for home purchase eligibility can take advantage of other assistance options that can help with closing costs and/or down payments. Even if you contribute to the down payment on your home, you can still use one of the following options:
- Down Payment Assistance Grant – NO pre-payment required; receive up to 3% of your first home mortgage loan. In other words, with this program, you could receive up to $6k on a $200k home.
- Second Mortgage Loan – repayment is deferred until your mortgage is paid, you refinance your home, or you sell your home. Receive up to 4% of your first home mortgage loan. In other words, you would receive up to $8k on a $200k home.