Colorado public school employees face the same housing affordability challenges as everyone else — but now there is a program built specifically for them. CHFA Schools to Home provides up to 25% of your first mortgage loan amount as down payment assistance, funded by the Public School Permanent Fund and requiring just $1,000 of your own money to close.

What is CHFA Schools to Home?

CHFA Schools to Home is a Colorado down payment assistance program created by the Colorado General Assembly and administered by the Colorado Housing and Finance Authority (CHFA). The program is funded by an investment from the Public School Permanent Fund (PSPF) — meaning the money helping you buy your home today gets recycled back into a fund that helps the next teacher do the same thing tomorrow.

The program pairs a fixed-rate Fannie Mae first mortgage with a CHFA DPA second mortgage of up to 25% of your first mortgage loan amount. The second mortgage carries 0% interest and requires no monthly payments. Instead of monthly bills, you repay the second mortgage — plus a share of your home’s appreciation — when you sell, refinance, or pay off the loan.

Who Qualifies as a Public School Employee?

At least one borrower on the loan must be a full-time employee of a qualifying Colorado educational institution. The employer must designate the borrower as full-time at the time of both application and loan closing. There is no minimum tenure requirement — you do not need to have worked there for a set number of years.

How the CHFA DPA Second Mortgage Works

The down payment assistance comes in the form of a silent second mortgage — meaning it sits behind your first mortgage with no monthly payment required. Here is exactly how it works:

• ✓Amount: Up to 25% of your first mortgage loan amount. You do not have to use the full 25% — you can request 15%, 20%, or 25% based on your needs.
• ✓Interest rate: 0% — the second mortgage accrues no interest ever.
• ✓Monthly payments: None. You make your regular first mortgage payment only.
• ✓Use of funds: Can be applied toward down payment, closing costs, prepaids, and/or principal reductions.
• ✓No prepayment penalty: You can pay off the second early with no penalty.
• ✓Repayment triggers: Full repayment is due when you pay off the first mortgage, sell or refinance the home, or the home is no longer your primary residence.

Understanding Shared Appreciation — Interactive Calculator

When you repay the CHFA DPA second mortgage, you also owe a shared appreciation payment. This is a percentage of the increase in your home’s value since you purchased it. The shared appreciation percentage can never exceed the DPA percentage you received. If your home’s value did not increase, or went down, your shared appreciation owed is $0.

Use the calculator below to see how this works with your numbers. Adjust your loan amount, select your DPA percentage, and enter an estimated future home value.

Borrower Requirements Checklist

To qualify for CHFA Schools to Home, every borrower on the loan must meet the following requirements. Your lender will verify each item during the underwriting process.

• 1Public school employment: At least one borrower must be a full-time employee of a qualifying Colorado public school, district, charter school, BOCES, or innovation zone — verified by employer designation at application and closing.
• 2Minimum credit score: A mid-credit score of 620 or higher is required for all borrowers.
• 3Income limit: Household income must be at or below the statewide Area Median Income (AMI) for Colorado. Your lender will calculate qualifying income per CHFA guidelines.
• 4Minimum borrower contribution: You must contribute at least $1,000 of your own funds toward the home purchase. This can be counted as part of the down payment or toward closing costs.
• 5CHFA-approved homebuyer education: All borrowers must complete a CHFA-approved homebuyer education class before closing.
• 6“Understand Your Financial Commitment” course: All borrowers must also complete this CHFA-created course, available at chfainfo.com/homeownership/chfa-schools-to-home-program. A certificate of completion is required with your loan file.
• 7Underwriting approval: You must qualify under Fannie Mae HFA Preferred conventional guidelines and receive a DU Approve/Eligible result. Interest rate buydowns are not permitted.
• 8Primary residence only: The home must be your primary residence. The program is not available for investment properties or second homes.

The Lender Process — What to Expect

Once you find a home and go under contract, your CHFA-approved lender manages the lock and purchase review process. Here is how it works from contract to close:

1. 1
   Lock the loan Your lender locks your rate in HomeConnection once you have a fully accepted contract. Locks are good for 60 days with up to six 10-day extensions available at 0.125% per extension. Locking is available Monday through Friday, 9:30am to 10:00pm MT.
2. 2
   Submit the purchase review file Your lender submits the complete CHFA Program Purchase Review Package to CHFA, including your “Understand Your Financial Commitment” certificate of completion and homebuyer education certificate.
3. 3
   CHFA purchases the loan CHFA purchases your loan within 60 days of the rate lock. From that point, CHFA services the loan directly — you make your mortgage payments to CHFA.
4. 4
   Final documents submitted After closing, your lender submits the final closing documents to CHFA to complete the purchase process.

Frequently Asked Questions