Start here: the pairing map
In Colorado you do not pick a loan and then add help. You pick a CHFA program, and it decides which loan types you can use. A participating lender sets it up, since CHFA does not lend directly.
| CHFA program | First mortgage allowed | Help | Income cap |
|---|---|---|---|
| Schools To Home | Fannie Mae HFA Preferred conventional only | Second up to 25% of the first mortgage | $178,920 |
| Colorado Champions | FHA, VA, USDA-RD, Fannie Mae, Freddie Mac | Second, lesser of $25,000 or 4% | $196,810 |
| SmartStep / SmartStep Plus | FHA, FHA 203(k), VA, USDA-RD | Grant (lesser of $25,000 or 3%) or second (lesser of $25,000 or 4%) | $178,920 |
| Preferred / Preferred Plus | Fannie Mae or Freddie Mac conventional | CHFA second | $178,920 |
| Colorado HFA1 | FHA, VA, USDA-RD, Fannie Mae, Freddie Mac | Second, lesser of $25,000 or 4% | $178,920 |
| FirstStep / FirstStep Plus | FHA, bond-funded | Second only | By county and household size |
| FirstGeneration | FHA | Second up to $25,000 | By county and household size |
All are 30-year fixed loans. CHFA says rates are higher when assistance is used. Daily rates go only to lenders, so ask for a quote with and without help.
Rules that apply to every CHFA loan
- Credit: a 620 mid score at minimum.
- Debt-to-income: up to 50% with a 620 to 659 score, up to 55% at 660 or higher, and never above the loan type's own limit.
- Your money: at least $1,000 of your own funds, and a gift can count.
- Classes: every borrower takes a CHFA-approved homebuyer class before closing. The certificate lasts 12 months.
- Occupancy: one-unit primary home. No cosigners who live elsewhere.
Mortgage insurance by loan type
Mortgage insurance is often the biggest cost difference between loan types. These are the federal and agency rules.
| Loan | Upfront | Monthly | Can it end? |
|---|---|---|---|
| FHA, 3.5% down | 1.75% of the base loan, can be financed | 0.55% a year on most loans | Not at that down payment; it lasts the full term |
| Conventional | None | PMI above 80% loan-to-value | Yes: you can ask at 80%, and it ends automatically at 78% on Freddie Mac loans |
| VA | Funding fee, 2.15% on first use with under 5% down | None | Not applicable |
| USDA | Guarantee fee up to 3.5% by rule | Annual fee up to 0.5% by rule | Your lender confirms current fees |
VA funding fee exemptions include veterans with service-connected disability pay and active-duty Purple Heart recipients. FHA's annual rate is 0.75% instead of 0.55% for base loans above $726,200.
Pairings by buyer
A full-time school employee
Schools To Home is the only CHFA program that can cover up to 25% of the loan. It forces a conventional loan, which is usually good for mortgage insurance. CHFA requires PMI only above 80% loan-to-value. With income at or below 80% of area median, coverage is set at the lower "charter" level. Rate buydowns are not allowed in this program, and it cannot be combined with other CHFA programs. CHFA's FAQ does allow another provider's grant.
A deputy, firefighter, EMT or dispatcher
Colorado Champions lets you choose. A veteran deputy might pick VA for no down payment and no monthly insurance. A volunteer firefighter with a 640 score might pick FHA. A paramedic with strong credit might pick conventional to drop PMI later. Champions allows permanent buydowns on FHA, VA and USDA-RD loans, and the program's matrix allows manufactured homes.
A nurse, tech worker or anyone else
SmartStep offers the only CHFA grant: the lesser of $25,000 or 3%, never repaid. Because CHFA's top loan is $832,750, 3% never reaches the $25,000 cap. Preferred covers conventional buyers. HFA1 accepts all five loan types.
A first-time buyer chasing the lowest rate
FirstStep is CHFA's lowest-rate loan because tax-exempt bonds fund it. It is for first-time buyers, qualified veterans or buyers in targeted areas, and it carries county income and price limits. It can also bring a federal recapture tax if you sell within nine years at a gain with a higher income. See the exit math guide.
A veteran or a rural buyer
VA loans need no down payment and no monthly insurance. Colorado veterans may also count as first-time buyers for FirstStep through a CHFA waiver. USDA loans offer 100% financing in eligible rural areas with a household income limit. Both pair with Champions, SmartStep and HFA1. Their fees and credit rules beyond what is listed above should come from your lender.
Local programs need their own first mortgage
metroDPA and Pikes Peak DPA each require their own first mortgage from their own lenders. That means you cannot put either one under a Schools To Home loan. metroDPA's minimum score is 620 or 640, depending on the servicer. Pikes Peak DPA caps debt-to-income at 45% with a 640 score or 50% at 680. Compare their offers against CHFA's on the same house.
Credit score planning
The 620 floor is a minimum, not a target. Moving from 659 to 660 raises CHFA's debt-to-income ceiling from 50% to 55%. That five-point gap can decide whether a deal works. FHA itself accepts scores from 580 for 3.5% down. Fannie Mae's automated system sets no minimum score of its own, but CHFA's overlay still applies.
Your next three moves
- Find your row in the pairing map and note the income cap.
- Ask one participating lender for two quotes on the same price: one with assistance, one without.
- Compare mortgage insurance over five years, not just the first payment.
Then check your eligibility to see which rows you fit.
Questions
Can I use FHA with Schools To Home?
No. Schools To Home uses only a Fannie Mae HFA Preferred conventional first mortgage. FHA is available through Colorado Champions, SmartStep, HFA1, FirstStep and FirstGeneration.
What credit score does CHFA require?
A 620 mid score for its programs. Debt-to-income can reach 50% at 620 to 659 and 55% at 660 or higher, within the loan type's limits.
Can I combine metroDPA with a CHFA program?
No. metroDPA requires its own first mortgage, so it cannot sit under a CHFA loan. The same goes for Pikes Peak DPA.
Which CHFA program has a true grant?
SmartStep offers a grant of the lesser of $25,000 or 3% of the first mortgage, with no repayment. It pairs with FHA, VA or USDA-RD loans.
Other guides
- What will you owe back when you sell? Exit math for Colorado down payment help
- How do lenders count overtime for Colorado firefighters, deputies and dispatchers?
- How do lenders read school-year pay for Colorado school staff?
- How do you budget for a first home in a high-price Colorado market?
- How much do metro district taxes add to a new Colorado home?
- What should first-time buyers check about a Colorado HOA?
- What rules apply to first-time buyers in Colorado mountain towns?
- How do deed-restricted and land trust homes work in Colorado?
- How does wildfire risk affect home insurance for Colorado buyers?
Check what you qualify for
Six questions, no credit check. Or call (800) 555-0100.
Start the eligibility check