How current CHFA assistance is structured
As of August 2026, the Colorado Housing and Finance Authority states that eligible buyers using a CHFA first mortgage may have access to down-payment and/or closing-cost assistance. Its grant option is described as up to the lesser of $25,000 or 3% of the first mortgage, with no repayment required.
CHFA also describes a second-mortgage option of up to the lesser of $25,000 or 4% of the first mortgage. Repayment is generally deferred until specified events such as payoff, sale, refinance, or when the property is no longer the borrower's primary residence. CHFA notes that higher interest rates apply.
Assistance should be compared with the complete mortgage
The amount of assistance is only one part of the decision. Compare the first-mortgage rate, payment, mortgage insurance, assistance repayment, cash remaining after closing, seller credits, closing costs, and expected time in the home.
Program availability and funding can change. Denver Lending can help evaluate the overall scenario, but CHFA programs must be originated through an eligible participating lender and remain subject to current CHFA and lender requirements.
Prepare before shopping
- Review income, assets, credit, debts, household and occupancy requirements.
- Complete required homebuyer education early when applicable.
- Understand whether assistance is a grant or repayable second mortgage.
- Build a complete-payment budget rather than focusing only on cash to close.
- Coordinate the assistance and first mortgage before writing an offer.