CHAC Statewide 5-Year Deferral: a small loan that waits five years for payments

Fact sheet

How the 5-year deferral works

CHAC is a Colorado nonprofit. This loan equals 6% of the sales price or appraised value, whichever is lower, with a floor of $5,000 and a ceiling of $12,000. For the first five years it carries 0% interest and no payments. In year six it converts to a 25-year repayment at 5%, so it is a real monthly bill later, not a forgivable gift. Budget for that payment when you decide how much house you can afford.

CHAC previously offered a statewide version with immediate repayment; that option was temporarily suspended on October 1, 2026, leaving the deferral loan as the statewide choice.

Who is eligible?

The program serves low-to-moderate income buyers throughout Colorado. Income caps vary by county and by the funding source behind the loan, and a sales price cap may apply, though CHAC's page does not state the figures. Every buyer must take a first-time homebuyer class and attend a CHAC counseling session. Non-occupant co-borrowers are not allowed, so a parent cannot co-sign without living in the home.

Can it be added to Schools To Home or another program?

This is an amortizing second loan, and Schools To Home permits only another provider's grant, so it likely does not fit behind Schools To Home. For other first mortgages, including CHFA's general programs or metroDPA, a participating lender confirms whether CHAC's loan can be layered.

Here is the math on the cap: 6% of a $200,000 home is exactly $12,000, so buyers above that price receive the $12,000 maximum, and buyers below about $83,000 receive the $5,000 minimum. In year six, a $12,000 balance amortizing over 25 years at 5% runs roughly $70 a month. That is modest, but your budget should be able to absorb it, and lenders may look at it when they review your ratios.

How to apply

Contact CHAC to confirm current income and price limits for your county, register for the homebuyer class, and schedule counseling. Then share CHAC's approval with your lender. Our step-by-step buying guide shows where counseling fits, the Pueblo County page lists other local options, and you can check eligibility for CHFA programs.

Questions about CHAC Statewide Program - 5-Year Deferral

Similar programs

• CHFA HomeAccess / HomeAccess Plus
• CHFA SectionEight Homeownership / SectionEight Homeownership Plus
• CHFA Preferred Very Low Income (VLIP)
• Colorado HFA1 / Colorado HFA1 Plus
• Colorado Roots Down Payment Assistance Fund
• Dearfield Fund Purchase Program

Summarized from the program's official page, November 2026. Money and rules shift; check today's terms with the administrator or a participating lender. Colorado Down Payment Assistance has no tie to this program.