We receive many calls asking about CHFA loans and if they can qualify for a CHFA loan. Most of the time if you are looking into a CHFA loan it is because you may be needing down payment assistance. I’ve come to see a common pattern or series of questions regarding these inquiries on CHFA. Many of you are not really sure what CHFA is and how they can be of assistance. You may have been told they have better rates, lower payments, lower down payment options and of course down payment assistance.
Let me start by saying we are a CHFA approved lender and are very happy we can offer CHFA as a loan option. CHFA is the Coloraod Housing and Finance Authority, they are located right by Coors Field on Blake Street. In order to obtain a CHFA loan you have to work with an approved lender.
CHFA is not a just a loan, they are a service provider for specific FHA loans and Conventional loan options. They are able to assist with specific programs but they are still an FHA or Conventional loan that they service. Meaning you make your mortgage payment to CHFA but your loan is still either an FHA or a Conventional loan.
They have the ability to offer specialty programs such as the CHFA Advantage, a Conventional loan with 3% down and NO MI, or the CHFA Smart Step Plus, which is an FHA loan with a 3% down payment assistance grant. All of CHFA’s programs do require that you complete the home buyer education.
The advantage of getting a CHFA loan is that they offer assistance programs that have down payment assistance grants, lower credit scores (min 620) and lower down payment options in order to help make homeownership more attainable. If you have questions or would like to see if you qualify for a CHFA loan please contact us.