What is CHFA & How Can YOU Benefit From It?

What is CHFA & How Can YOU Benefit From It?

By Claren Walker

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CHFA (Colorado Housing and Finance Authority) invests in programs to support affordable homeownership and affordable rental housing.  CHFA offers 30-year fixed rate home loan products at competitive rates, with options for down payment assistance.   In addition to down payment assistance grants, in 2017, CHFA launched down payment assistance in the form of a second mortgage!  CHFA also offers Mortgage Credit Certificates (MCCs) which can save homeowners 20 percent of their mortgage interest each year.

It is important to find a CHFA Participating Lender if you are looking to use CHFA’s benefits.  Your lender can confirm how much you may qualify for and can also recommend the best program for your needs.  CHFA can help with both down payment assistance and closing costs.  Your lender can assist in utilizing savings with CHFA’s loan programs which may offer:

  • Low 3 percent down payment
  • Programs without mortgage insurance
  • Fixed interest rates and 30 year terms

If you are a first-time homebuyer, you may qualify for CHFA’s First-Step program.   (A first-time homebuyer is defined by CHFA as one who has not had an ownership interest in a primary residence for the three years prior to the mortgage loan closing.)   This program may make your upfront costs more affordable!  To qualify:

  • Your income and total loan amount must be within limits (as specified on income & purchase price limit chart found on CHFA’s website)
  • You must complete a CHFA homebuyer education class (online or in-person) prior to your loan closing
  • You must contribute a minimum of $1,000 toward the purchase of the home
  • You must have a credit score of 620 for borrowers with credit scores (borrowers with no credit score are permitted).
  • In addition to qualifying for the CHFA program guidelines, you must also qualify according to the mortgage underwriting guidelines as determined by your CHFA Participating Lender

Arm yourself with the information you need to find your future home!  There are several different programs offered, and one of the programs may benefit you!  CHFA sponsors statewide homebuyer classes, online for $99 or free in-person.  You will receive a certificate of completion upon completing the class that is valid for up to one year.  These classes fill quickly so act fast to ensure you gain a spot in one of their upcoming classes!

All in all, CHFA is one of the many housing partners who help make Colorado a more affordable place to live.  If you are planning to purchase a home in the near future, be sure to check out the CHFA website www.chfainfo.com to understand the loan programs offered to Colorado residents.

Adriana Johnson