CHFA Down Payment Assistance Second Mortgage Loan

CHFA Down Payment Assistance Second Mortgage Loan is a deferred second loan for homebuyers in Statewide, Colorado. CHFA's Down Payment Assistance Second Mortgage Loan is a 0% interest, deferred-payment second mortgage equal to up to 4% of the CHFA first mortgage loan amount (capped at $25,000 in practice for most products). No monthly payments are required. The full principal balance is due upon sale, refinance, payoff of the first mortgage, or when the home is no longer the borrower's primary residence; otherwise repayment is deferred to month 361 of the first mortgage. The Second Mortgage option is an alternative to the CHFA Grant — borrowers select one or the other, not both. Up to 4% of the CHFA first mortgage loan amount (capped at $25,000) as a 0% interest, deferred-payment second mortgage. No monthly payments — full balance is due upon sale, refinance, payoff of first mortgage, or when the home ceases to be the primary residence. otherwise deferred to month 361 of the first mortgage. Funding comes from State and Bond.

CHFA Down Payment Assistance Second Mortgage Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Full principal balance due at sale, refinance, payoff of first mortgage, or when home is no longer primary residence. Otherwise deferred to month 361 of the first mortgage. No monthly payments and no interest accrual. 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.

CHFA Down Payment Assistance Second Mortgage Loan is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 620 minimum FICO for FHA/VA/USDA; 660 for Conventional. A homebuyer education course is required, through CHFA-sponsored homebuyer education (online via eHomeAmerica or Framework, or in-person via CHFA-approved housing counseling agencies). Residency requirement: Property must be located in Colorado and used as borrower's primary residence. Citizenship or immigration status: U.S. citizen, permanent resident alien, or qualified non-permanent resident alien per first-mortgage product overlays. Must be paired with an eligible CHFA first mortgage (CHFA Preferred, CHFA Preferred Plus, CHFA SmartStep, CHFA SmartStep Plus, CHFA FirstStep, CHFA FirstStep Plus, or CHFA HomeAccess). Borrower must have minimum mid-FICO of 620 (Government/USDA) or 660 (Conventional). Maximum DTI 50%. At least one borrower must complete CHFA homebuyer education. Borrower minimum cash contribution of $1,000 from own funds.

CHFA Down Payment Assistance Second Mortgage Loan 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.

CHFA Down Payment Assistance Second Mortgage Loan 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.

CHFA Down Payment Assistance Second Mortgage Loan serves homebuyers 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.

Applications for CHFA Down Payment Assistance Second Mortgage Loan go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Lender reservation through CHFA's HomeConnection loan reservation system. 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.