CHFA Down Payment Assistance Grant

What is CHFA Down Payment Assistance Grant?

CHFA Down Payment Assistance Grant is a grant for homebuyers in Statewide, Colorado.

• CHFA's Down Payment Assistance Grant provides up to 3 percent of the CHFA first mortgage loan amount as a non-repayable grant to assist with down payment, closing costs, and prepaids. The grant is paired with a CHFA first mortgage and does not require repayment as long as program rules are followed. Note: CHFA's tax-exempt bond first-mortgage products are subject to a 9-year IRS Recapture Tax provision that may affect the borrower's tax liability if all three federal triggers (sale within 9 years, net gain, and household income above the federally-prescribed limit) are met.
• Non-repayable grant of up to 3% of the CHFA first mortgage loan amount (capped at $25,000 in practice for most products) to assist with down payment, closing costs, and prepaids. No retention period for the grant component (grant is fully forgiven at closing).
• Funding comes from State and Bond.

How much assistance does it provide?

CHFA Down Payment Assistance Grant provides assistance worth 3% of the purchase price, as set by the program.

• The program asks buyers to contribute $1,000 minimum borrower cash contribution from own funds.
• 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?

CHFA Down Payment Assistance Grant is structured as a grant, so it is not repaid.

• Repayment is triggered by None — grant is non-repayable. (Underlying CHFA bond first mortgage may carry IRS recapture tax if home is sold within 9 years with net gain and income above federal threshold.).
• The assistance is recorded in 0 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

CHFA Down Payment Assistance Grant is open to buyers who will live in the home as their primary residence.

What are the income limits?

CHFA Down Payment Assistance Grant limits household income to $174,440.

• The limit applies to total household income, not only the borrower’s.
• 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?

CHFA Down Payment Assistance Grant caps the purchase price at $806,500.

• 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?

CHFA Down Payment Assistance Grant serves buyers purchasing in Statewide, Colorado.

• The program targets specific areas: IRS-designated targeted areas in Colorado allow waiver of first-time-homebuyer requirement (where applicable) and offer higher income/purchase-price limits under the bond program.

How do you apply?

Applications for CHFA Down Payment Assistance Grant go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through CHFA-sponsored homebuyer education (online via eHomeAmerica or Framework, or in-person via CHFA-approved housing counseling agencies). At least one borrower must complete a CHFA-approved homebuyer education class prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lender reservation through CHFA's HomeConnection loan reservation system, and are subject to availability.

3. 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.