Since 1974, Coloradoans have been able to take advantage of CHFA to get into their new home. This organization helps low- and moderate-income earners accomplish the American Dream. And it does it all without using State tax dollars.
Owning your home is something everyone can accomplish. Programs like the Colorado Housing and Financing Authority are in the business of getting home deals done. Quite simply, this program makes down payment assistance possible. And more.
How Do I Get Started With A CHFA Loan?
Taking a home buyer education course is a good starting point with CHFA. The program will teach you all about the home buying process. You’ll learn about the terminology and what to expect. It’s also a good opportunity to introduce you to the right mortgage lender. It’s important to have a lender familiar with CHFA loan program requirements.
How Does CHFA Work?
Your CHAFA participating lender can offer a fixed rate mortgage program. Additionally, qualifying candidates can receive down payment assistance and possibly even have some of their mortgage closing costs covered. This is really a great program for Coloradoans.
Traditionally, home buyers use cash (about 1/4th to 1/3rd of all transactions are cash) or a down payment plus a loan to buy a home. It’s not at all uncommon to see borrowers putting 20% down on their first home purchase. This can be daunting for some people who otherwise would be ideal home buying candidates.
That’s where a down payment assistance program like CHFA can make such a huge impact.
Borrowers in this program do need to be aware there are income limitations. And participants must have a credit score of at least 620. Don’t worry, if your credit score is lower, I know plenty of mortgage professionals that can help you to improve your credit score. This home buying program has been around since 1974, it’s not going anywhere!
Secret Added Benefit Of Chfa Financing
Actually, it’s not a secret at all. Home buyers taking advantage of this down payment assistance program will never have to repay the down payment assistance portion of your financing. Let me restate that.
CHFA buyers are not required to repay the down payment assistance. Again, there are some restrictions, and your mortgage lender will be able to explain all the rules when you make your application. Or visit the official state website.
So you are probably wondering what’s the catch. How much do you have to bring to the table? Well, in 2023 The Minimum Financial Investment is a thousand bucks. Not too shabby.
Real Life CHAFA Success Story
A few years ago, I was able to help a client get into a townhouse style condo. Adam took advantage of the Colorado Housing Finance Authority program. He literally just scraped together a thousand bucks to cover the MFI. The home seller was willing to even pay his closing costs (we wrote a better than full price offer).
Today that home has really appreciated. Heck, everything along the Front Range has been appreciating the last several years. That increase in home equity is a future retirement fund for Adam’s family. You see, since he bought his first home ever, his financial outlook has improved. He met a great girl and just got married. Do I think it’s all because he had an amazing Realtor and the CHFA financing, probably not, but who can be sure.
Are you ready to write the next chapter in your life? Let’s talk about your home buying opportunity and discover if CHFA is the right loan for you.