Three Point Mortgage is not a CHFA Participating Lender, and neither Chris Cartwright nor Three Point Mortgage is affiliated with, endorsed by, or representing the Colorado Housing and Finance Authority.
CHFA is a separate public entity. Its program names and materials belong to CHFA. This page explains CHFA programs independently so buyers can understand them. CHFA loans are originated through wholesale lenders that hold agreements with CHFA. Confirm all program terms directly with CHFA at chfainfo.com, the official source, before making a decision.
If you've been researching mortgages in Colorado, you've probably seen CHFA mentioned somewhere. Maybe your agent brought it up, maybe you saw it in a search result, or maybe someone told you to look into it without explaining what it actually is.
CHFA stands for the Colorado Housing and Finance Authority. It's a state agency that helps Colorado residents buy homes by offering below-market mortgage rates combined with money to help cover your down payment and closing costs. Here's a plain-language breakdown of how it works.
What CHFA actually is
CHFA is not a lender in the traditional sense. You don't apply directly to CHFA the way you'd apply to a bank. Instead, CHFA works through a network of approved lenders who originate the loans on CHFA's behalf.
When you get a CHFA loan, the process looks like a normal mortgage application. You work with a CHFA-approved lender, go through underwriting, and close like any other home purchase. The difference is that your lender sells the loan to CHFA after closing, which is what allows them to offer the program's benefits.
CHFA gives Colorado buyers a first mortgage plus down payment and closing cost assistance, capped at the lesser of $25,000 or 3 percent of the first mortgage as a grant, or the lesser of $25,000 or 4 percent as a second mortgage.
The two parts of a CHFA loan
Part 1: The first mortgage
CHFA offers a fixed-rate first mortgage. CHFA sets and publishes the rate itself rather than having it priced by the lender, and it changes periodically based on CHFA's funding sources. Any lender working in the program can tell you what CHFA is publishing on a given day.
Part 2: The down payment assistance
On top of the first mortgage, CHFA offers assistance for down payment and closing costs, capped at the lesser of $25,000 or 3 percent of the first mortgage for the grant, or the lesser of $25,000 or 4 percent for the second mortgage. This assistance comes in two forms depending on the program:
- Grant: Money that does not need to be repaid. Some CHFA programs offer the assistance as an outright grant.
- Second mortgage: A low or zero interest second loan that is either deferred or has very low payments. This adds a lien to the property but is structured to be manageable.
Who qualifies for a CHFA loan: the actual requirements
Most buyers who ask me about CHFA assume they won't qualify. Most of them are wrong. Here are the actual requirements:
- Credit score: Minimum 620 for most CHFA programs
- First-time buyer: You have not owned a primary residence in the past three years. Exceptions exist for buyers purchasing in federally designated targeted areas.
- Income limits: Vary by county and household size. See current CHFA income and purchase price limits. In the Denver metro, limits are higher than most buyers expect. A household earning well into six figures can still qualify in many cases.
- Purchase price limits: Vary by county. Denver metro limits accommodate current market prices.
- Primary residence: The home must be your primary home, not a rental or investment property.
- Homebuyer education: All CHFA buyers must complete an approved online course, typically 6-8 hours, before closing.
Want to talk through your situation?
A 15-minute call gives you a clear picture of your options and what actually makes sense for your goals.
CHFA vs a conventional loan: which one is right for you?
| CHFA Loan | Conventional Loan |
|---|---|
| Assistance capped at the lesser of $25,000 or 3% (grant) or 4% (second) | No built-in assistance available |
| Competitive rate through CHFA's funding | Access to lowest available market rates |
| Requires homebuyer education course | No education requirement |
| Income and purchase price limits apply | No income limits |
| Available statewide through approved lenders | Available through any lender |
The decision usually comes down to one question: how much cash do you have available? If your savings are tight, the assistance CHFA provides often makes sense. If you have strong savings and can put 10% to 20% down, a conventional loan at the best market pricing typically wins over time. I run this comparison side by side for every first-time buyer I work with.
How much can you actually get from CHFA?
| Purchase Price | Loan Amount (3.5% FHA) | CHFA Assistance (3%) | What It Covers |
|---|---|---|---|
| $400,000 | $386,000 | $11,580 | Most or all closing costs |
| $500,000 | $482,500 | $14,475 | Most or all closing costs |
| $600,000 | $579,000 | $17,370 | Closing costs plus partial down payment |
The homebuyer education requirement
Every CHFA borrower must complete an approved homebuyer education course before closing. The courses are available online and typically take 6-8 hours at your own pace. The content covers budgeting, understanding your mortgage, home maintenance, and avoiding foreclosure. Start early so it doesn't hold up your closing timeline.
The bottom line on CHFA
CHFA is not the right tool for every buyer. But for Colorado buyers who are ready to own and whose main obstacle is coming up with enough cash to close, it is one of the most practical programs available. The assistance is real, the process is manageable, and thousands of Colorado buyers use it every year.
If you think you might qualify, the fastest way to know is a conversation with a CHFA-approved lender who can check your income against current limits, run the numbers on your purchase price, and tell you whether CHFA or a conventional loan makes more sense for your situation. If you want a sense of how I work through these situations, client reviews are here, and there is more background on my approach if that helps.
Colorado public school employees, in any role, have access to a separate program with a much larger assistance amount: see the CHFA Schools To Home guide, along with a Shared Appreciation Calculator that models what the shared appreciation obligation costs at sale.
Buying in a specific part of the metro? I have local guides for Denver · Lakewood · Westminster.
Chris Cartwright and Three Point Mortgage are not a CHFA Participating Lender and are not affiliated with, endorsed by, or representing the Colorado Housing and Finance Authority. CHFA loans are originated through wholesale lenders that hold agreements with CHFA. This content is independent and educational.
Chris Cartwright is a licensed mortgage broker serving first-time buyers across Colorado, Washington, Texas, California, Arizona, and Florida. He helps buyers understand which programs they qualify for and runs side-by-side comparisons so you can make an informed decision.
Find out if a CHFA loan is right for you
A 15-minute call is all it takes to check your eligibility and compare CHFA against your other options. I can originate CHFA loans through wholesale lenders who hold the participating lender agreements with CHFA. If you want to know which program actually fits your situation, call me and we will work it out.
CHFA program details subject to change. This content is for informational purposes only. All loans subject to credit approval. Equal Housing Lender.