Would you like to use down payment assistance to buy your next home in Colorado but prefer to use Conventional instead of FHA, VA or USDA? CHFA Preferred may be perfect for you…
CHFA Preferred is a 97% LTV (loan to value), or 3% down payment, Conventional loan option. Just like CHFA Smart Step, there is no first time home buyer requirement to use the program.
You can use CHFA Preferred without down payment assistance or use the CHFA Preferred Plus which provides down payment assistance in the form of a second mortgage.
The second mortgage is for 4% of the first mortgage amount and has no monthly payments and 0% interest. Just pay it off when you sell, refinance or reach a $0 balance.
Income limits do apply and vary by county along with adjustments each year. Right now, for those purchasing in the Denver metro area, all borrowers on the loan must have qualifying income of $80,000 or less.
Loan limits are set at $510,400.
To be eligible you must purchase a single family home, townhome, condo or manufactured home that you plan to occupy as your primary residence.
All CHFA programs require a homebuyer education class to be taken by all borrowers. Right now classes are being offered online for free (normally online classes have a cost) due to COVID-19.
Helpful Links & Related Videos:
Top 3 CHFA Programs
CHFA FirstStep First Time Home Buyer Program
CHFA SmartStep Down Payment Assistance Program
CHFA Purchase Price Limits
CHFA Income Limits
CHFA Homebuyer Education
FHA vs Conventional 2020
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This is not a commitment to lend. Program restrictions apply.