CHAC provides low interest, flexible loans to low and moderate income (80% AMI in most areas, 100% AMI in Arvada when using the Arvada program) first time home buyers for down payment and closing cost assistance throughout Colorado. The loan is recorded as a second mortgage (lien) on the property being purchased. All of the loans require repayment, usually with monthly payments, although the start date of those payments may vary. All borrowers are required to have a minimum contribution of $1,000 (minimum contribution for the disability program is $750.00) to the transaction that cannot be a gift. Exceptions may apply.

Applications for CHAC assistance will be submitted by your first mortgage lender. We will communicate primarily through that person, but are available to answer any questions about the CHAC loan you may have.

As a buyer, your first step must be attendance at a CHFA/CHAC approved First Time Home Buyer class. That class is a requirement for all CHAC borrowers. (For CHAC borrowers, the First Time Homebuyer online class (e-HOME) is only accepted with prior approval from CHAC staff—check before you register and pay)

CHAC Class Schedule

Once CHAC has reviewed the initial application from your lender, there will be several documents and disclosures for you to sign and return to us. These will include a description of the CHAC loan—the amount, terms, and fees. You will also be asked to certify other information such as:

YOU

  • Have not had a ownership interest in a principal resident for three (3) years prior to the loan closing date
  • Intend to occupy this property as your primary residence
  • Do not own other residential property
  • Have given full disclosure of income and assets for all persons intending to occupy the home
  • Have provided proof of legal residency for all members of the household-if requested

YOU agree and understand

  • An additional borrower counseling session with CHAC is required prior to closing
  • You must provide at least $1,000 ($750 for disability program) to the purchase transaction
  • You may NOT get any money back at closing
  • This loan will be a mortgage on your home
  • This loan will be serviced by Colorado Housing Assistance Corporation (CHAC)
  • You may prepay the CHAC loan at any time without penalty
  • Payments are due on the 1st of each month, late on the 16th. IF late, a $5.00 late fee may be added
  • If you are not living in the home, the FULL amount of the outstanding loan plus interest will be due and payable immediately.
  • If the first mortgage is paid off or otherwise released, (including a refinance), the CHAC loan will be due in full.

Between the time we issue the loan commitment to your lender and provide you with the various disclosures, and before you close, you must participate in a CHAC borrower counseling session. Those are regularly scheduled. You will be advised when to register and how to proceed. There is no substitute for this session.

The CHAC loan will close at the same time as the real estate and first mortgage closing.

Helpful Links

Colorado Housing Search Affordable Houses for Sale in Colorado Colorado Division of Real Estate - Licensed Mortgage Loan Originators