CHFA SmartStep

What is CHFA SmartStep?

CHFA SmartStep is a repayable second loan for homebuyers in Colorado.

• CHFA SmartStep provides a zero-percent interest second mortgage of up to the lesser of $25,000 or 4% of the first mortgage loan amount. Available to first-time and repeat homebuyers in Colorado through CHFA-approved lenders. Repayment deferred until sale, refinance, or no longer primary residence. Compatible with FHA, VA, and USDA-RD first mortgage products.
• Zero-percent interest second mortgage up to $25,000 or 4% of first mortgage (whichever is less).
• no monthly payments on the second mortgage. Repayment deferred until sale, refinance, or home is no longer primary residence. Available statewide through CHFA-approved lenders. Compatible with FHA, VA, and USDA-RD first mortgage loans.
• Funding comes from State.

How much assistance does it provide?

CHFA SmartStep offers up to $25,000 in assistance.

• The program asks buyers to contribute $1,000.
• 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 SmartStep is a repayable second loan and is repaid under the terms set by the administering agency.

• Repayment is triggered by Sale, Refinance, and No Longer Primary.
• The assistance is recorded in 2nd Lien 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 SmartStep is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

CHFA SmartStep limits household income to 100% of the area median income, which varies by county and household size.

• Income limits vary by county and household size. Contact a CHFA-approved lender for current limits in your area.
• 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 SmartStep caps the purchase price as follows: Purchase price limits vary by county and align with conforming loan limits. Contact a CHFA-approved lender for current limits in your area.

• Eligible property types include Single Family, Condo, Townhouse, and New Construction.
• New construction is eligible.

Where does it apply?

CHFA SmartStep serves buyers purchasing anywhere in Colorado.

How do you apply?

Applications for CHFA SmartStep 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 before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-Come-First-Served, 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.