Mortgage Assistance Loans (Downpayment and CLosing Costs)

CHAC provides low interest, flexible loans to low and moderate income first time home buyers (see stated income limits for up to date figures) for down payment and closing cost assistance throughout Colorado. The loan is recorded as a second mortgage (lien) on the property being purchased. All of the loans require repayment, usually monthly payments, although the start date of those payments may vary. All borrowers are required to have a minimum contribution of 1% of the sales price (minimum for the disability program is $750.00) that must be from their own funds and cannot be a gift.  Other exceptions may apply. Limits are posted in the Lender Forms.

For FHA, CHAC is considered an Instrumentality of Government for financing purposes (see Lender Forms). For conventional products, CHAC’s programs meet the requirements for “Community Seconds.” For all first mortgage products, lenders, please check with your underwriters and investors for additional overlays or requirements. If you need additional information please contact [email protected].

General Information

  • The first mortgage lender will submit the application on the borrower’s behalf, after a property is under contract and the first mortgage product type selected. Specific rules of the first mortgage may affect the amount and terms of the CHAC assistance available.
  • The buyer must complete a CHFA/CHAC approved first time homebuyer class, before the CHAC application can be approved. The on-line course work by E-Home and Framework will be accepted for downpayment assistance applicants only if the borrower registers through the CHAC website.
  • Once the CHAC loan is committed, the buyer will be required to sign certain legal disclosures and complete a CHAC borrower counseling session. This is DIFFERENT from the first time home buyer class and provided only by CHAC. This is a phone session set up once a loan has been committed.
  • The CHAC loan will close in conjunction with the real estate and first mortgage closing.

Statewide – COLORADO

Basic Conditions

  • Sales Price limits may apply
  • Demonstrated need required
  • CHAC funds may NOT be used for Buydowns/Discount Points or Appraisal Gaps (these costs must be paid from Borrowers own funds
  • Loan Amount: 6% of the Lesser of Sales Price or Appraised Value up to $12,000 (whichever is less)
  • Nonresident co-borrowers are not allowed
  • All household residents must provide proof of lawful presence in the United States
  • Property must NOT have been tenant occupied for the previous 90 days prior to purchase unless the tenant is the buyer
  • A standard home inspection is required
  • No cash back allowed. No exceptions
  • All health and safety issues must be repaired
  • All properties must have functioning Smoke and                                                            Carbon Monoxide detectors properly installed
  • All borrowers must complete a CHFA approved First Time Homebuyer Class
  • All borrowers must ALSO complete the CHAC Borrower Counseling Session (Prior to closing but following CHAC conditional commitment)

Additional conditions may be required and will be listed as part of the Conditional Commitment package when it is sent to the lender.

Loan Amounts, Rates, Terms

  • Loan amounts, rates, terms and fees vary depending upon the geographic location of the property being purchased and the program/funding available.
  • Loan amounts range from $5,000 to $12,000 (as of July 1, 2023)
  • Rates: 0% to 5% APR: 0% to 5.5%
  • Terms: 12.5 years — 30 years


CHAC Borrowers MUST

    1. Be low to moderate income homebuyers by family size  (see most recent income limits posted).
    2. Be considered FIRST TIME HOMEBUYERS: (Have not had an ownership interest in residential property for the previous 3 years)
    3. Will include an assessment of NEED- Borrower can retain up to 2 months of PITI.


These are CHAC guidelines. The application will be underwritten based on all parts of the file, including compensating factors:

  • Ratios: 35%-45%
  • Credit: Overall credit history will be reviewed. All collections and judgments must be cleared or have established payment plans. Please submit a letter of explanation for any negative items.
  • No Credit: Submit 3 sources of alternative credit with initial application
  • Payment Shock: New housing costs should not exceed 150% of current rental costs.
  • Savings: CHAC's program is need based. There is no minimum amount of reserves required . The borrower should show a history of monthly savings. Savings of more than two months PITI should be used towards the borrower's contribution towards the purchase.
  • Job/Income stability: There is no minimum amount of time, but overall income stability will be considered when the file is underwritten

Please direct further questions to [email protected].