CHFA Preferred Very Low Income (VLIP): Freddie Mac + 4% Second

Fact sheet

CHFA Preferred Very Low Income (VLIP)

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Colorado Housing and Finance Authority (CHFA)

Buyers: Very-low-income buyers using a Freddie Mac conventional loan
Amount: Optional 0% silent second up to lesser of $25,000 or 4% of first mortgage
Form: Deferred loan, repaid later
Price cap: None; max loan lower of $832,750 or Freddie Mac limit
First-time only: No
Pairs with CHFA Schools To Home: no - separate CHFA first-mortgage program

Matrix effective Jan 5, 2026; $1,000 minimum borrower contribution (gift allowed). Income limits published separately by CHFA (not captured).

Checked November 2026 · method

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What VLIP is

VLIP is CHFA's conventional product for households at the low end of the income scale. The first mortgage follows Freddie Mac guidelines rather than FHA, which can matter if you want to avoid FHA's mortgage insurance structure. The optional second carries no interest and no monthly payment, and it is capped at 4% of the first mortgage or $25,000, whichever is lower. On a $250,000 loan, for example, 4% would be $10,000.

You still bring money of your own: VLIP requires a $1,000 minimum borrower contribution, though a gift can cover it.

Who is VLIP for?

The program targets very-low-income buyers. CHFA publishes the VLIP income limits separately, and we did not capture those figures, so ask the lender for the cap in your county and household size before relying on it. First-time buyer status is not required. There is no purchase price cap; the loan cannot exceed the lower of $832,750 or the Freddie Mac limit. The matrix we used is dated January 5, 2026.

VLIP vs. Schools To Home and Colorado Champions

VLIP is a separate CHFA first mortgage, so it replaces Schools To Home or Colorado Champions rather than adding to them. For a school employee, Schools To Home's second can reach 25% of the loan, far more than VLIP's 4%, but it carries a shared-appreciation payment. A responder's Champions second has the same 4% and $25,000 caps as VLIP. A participating lender can price each option so you see the real difference in rate and payment.

Why choose a conventional loan at all? Mortgage insurance, rates and credit rules differ between Freddie Mac and FHA loans, and the cheaper choice depends on your score, down payment and how long you plan to keep the loan. Ask the lender to compare VLIP with an FHA option such as CHFA's SmartStep so you can see the payment, insurance and cash to close side by side before you choose. Because the VLIP second is optional, ask for a quote without it as well.

Keep the $1,000 contribution in a documented account or line up a written gift letter early, since lenders verify where that money came from.

How to apply

Contact a CHFA participating lender, ask for VLIP pricing and the current income limit, complete homebuyer education, and have your contribution ready. Use our cash-to-close guide to estimate what you need, review your county page such as Mesa County, and check eligibility.

Questions about CHFA Preferred Very Low Income (VLIP)

How much can VLIP provide?

An optional 0% silent second up to the lesser of $25,000 or 4% of the first mortgage.

What is the VLIP income limit?

CHFA publishes VLIP limits separately; we did not capture them, so ask a participating lender for your county's figure.

Do I need my own money for VLIP?

Yes, a $1,000 minimum contribution, which may come from a gift.

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CHFA Preferred Very Low Income (VLIP): a conventional option for lower incomes