CHAC Statewide Program - 5 Year Deferral

CHAC Statewide Program - 5 Year Deferral is a deferred second loan for homebuyers in Statewide, Colorado. CHAC's Statewide 5 Year Deferral program is a 30-year second-mortgage DPA loan from a nonprofit CDFI. The borrower pays no principal or interest for the first 5 years (full deferral at 0% interest). After the 5-year deferral period, the loan amortizes at 5% interest over the remaining term (typically 25 years). The loan is for first-time homebuyers earning at or below 80% AMI by household size and county. Statewide DPA second mortgage of up to 6% of the lesser of sales price or appraised value, capped at $12,000 (range $5,000-$12,000). 5-year deferral at 0% interest, then 5% interest amortized over remaining term of the 30-year loan. Borrower minimum cash contribution of $1,000. Funding comes from Nonprofit, CDFI, HOME, and Federal.

CHAC Statewide Program - 5 Year Deferral offers up to $10,000 in assistance. The program asks homebuyers to contribute $1,000 minimum borrower contribution (standard CHAC programs). The program can be combined with other assistance, subject to the rules of each. Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

CHAC Statewide Program - 5 Year Deferral is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by No payments for first 60 months. Beginning month 61, monthly principal-and-interest payments at 5% amortizing over remaining term. Full balance due at sale, refinance, transfer, or end of owner-occupancy. The assistance is recorded in 2 position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

CHAC Statewide Program - 5 Year Deferral is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer (no ownership of principal residence in prior 3 years) with HUD HOME displaced-homemaker / single-parent exceptions. On credit, the program states: Subject to underlying first-mortgage lender requirements (typically 620+); CHAC does not publish a standalone CHAC FICO floor. A homebuyer education course is required, through CHFA/CHAC-approved First Time Homebuyer education class required prior to application. Residency requirement: Property must be located in Colorado and used as borrower's primary residence. Citizenship or immigration status: U.S. citizen or qualified non-citizen per HUD HOME / CHAC program rules. First-time homebuyer (no homeownership in prior 3 years) with household income at or below 80% AMI for Colorado statewide. Must complete CHFA/CHAC-approved homebuyer education prior to submitting an application. Application submitted by first mortgage lender. Borrower minimum contribution of $1,000 from own funds. Property must be primary residence within Colorado.

CHAC Statewide Program - 5 Year Deferral limits household income to 80% of the area median income, which varies by county and household size. Per CHAC Statewide Program Income Limits effective April 7, 2025: 1 person $48,750 / 2 person $55,700 / 3 person $62,650 / 4 person $69,600 / 5 person $75,200 / 6 person $80,750 / 7 person $86,350 / 8 person $91,900. Higher-balance counties scale up to approximately $124,950 (8-person in highest AMI counties). Limits set at 80% HUD AMI by county and household size. The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 8. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

CHAC Statewide Program - 5 Year Deferral caps the purchase price as follows: Subject to underlying first-mortgage product purchase-price limits (FHA, VA, USDA, conventional); CHAC does not publish a separate standalone purchase-price cap. Eligible property types include Single-family detached, Townhome, Condominium (warrantable), 2-4 unit (per first-mortgage overlays), and Manufactured (real property, per product). New construction is eligible. Manufactured homes are eligible.

CHAC Statewide Program - 5 Year Deferral serves homebuyers purchasing in Statewide, Colorado.

Applications for CHAC Statewide Program - 5 Year Deferral go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application submitted by first-mortgage lender via CHAC's online portal after homebuyer education completion. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.