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CHAC Statewide Program - 5 Year Deferral

Statewide, Colorado

Last verified
See what you qualify forOfficial program site →
Assistance

$10,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Deferred

No payments until the home is sold or refinanced

What is 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.

How much assistance does it provide?

CHAC Statewide Program - 5 Year Deferral offers up to $10,000 in assistance.

  • The program asks buyers 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.

Do you have to pay it back?

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.

Who qualifies?

CHAC Statewide Program - 5 Year Deferral is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer (no ownership of principal residence in prior 3 years) with HUD HOME displaced-homemaker / single-parent exceptions
  • The home is occupied as a primary residence
  • On credit: Subject to underlying first-mortgage lender requirements (typically 620+); CHAC does not publish a standalone CHAC FICO floor
  • A completed homebuyer education course, through CHFA/CHAC-approved First Time Homebuyer education class required prior to application
  • Residency: 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.

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

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.

  1. Take a homebuyer education course

    Required by the program, through CHFA/CHAC-approved First Time Homebuyer education class required prior to application.

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application submitted by first-mortgage lender via CHAC's online portal after homebuyer education completion, and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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