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Colorado Housing Assistance (CHAC)

Program Overview

Colorado Housing Assistance (CHAC) is a second mortgage loan assistance of $10,000 for down payment and/or closing cost (including pre-paids) assistance program. Minimum second mortgage loan amount is $1,000.00. Maximum second mortgage loan amount is $10,000.00. Terms, rates, and amounts vary based on location, income of family, available assets, etc. Borrowers must be first time home buyers. Once an application has been reviewed, the borrower will need to attend a meeting at CHAC (670 Santa Fe Drive, Denver, CO). Meetings are held on Thursday afternoons. All Borrowers and Co-Borrower must attend. This second mortgage loan is fully amortized with monthly payments and 0% to 6% interest for the full term of the loan. Owner occupied primary residence only. All co-borrowers must also occupy the premises. Properties must be located in the State of Colorado.

Who is eligible for this program?

Borrower are required to provide at least $1,000 of their own funds towards downpayment and closing costs. Borrower's combined annual income per household must be at or below the following income limits governed by CHAC: 1 person: $40,150; 2 people: $45,900; 3 people: $51,600; 4 people: $57,350; 5 people: $61,950: and 6 people: $66,550. For larger families please call for income limits. Is this program for first time buyers only? Yes

Property Eligibility Requirements

Properties located in the State of Colorado would qualify for this assistance. Allowable property types: All properties built prior to 1978 must have a visual lead paint inspection (different from an appraisal).

Benefit Details

CHAC Loan programs available in the City and County of Denver and Jefferson County: 6% of the purchase price up to $10,000 - 3 payback options: (1) 30 year term, payments deferred 5 years at 0% interest and then paid back over remaining 25 years. Interest rate: 6%. (2) 30 year term, payments deferred 3 years at 0% interest and then paid back over the remaining 27 years of the term. Interest rate: 5%; (3) 30 year term, payments start right away. Interest rate: 2%. City and county of Denver ONLY: a special program for Deed restricted properties - loans up to $10,000 based on 5% of the purchase price, 30 year term, 5 years deferred at 0%. Interest rate: 0% (you pay back the principal over the remaining 25 year life of the loan). All other counties around the state: maximum $5,000 with a 5% interest rate. Benefit: CHAC loans can be used in conjunction with some other loan programs (such as CHAFA's cash assistance program) and with seller concessions. CHAC cannot be used in conjunction with Seller GIFT programs. Homebuyer Counseling / Education Required: Yes Owner Occupancy Required: 0 Other Program Comments: CHAC also has assistance for people with disabilities. They provide a $6,000 loan at 1-1/2% interest due on sale or in 30 years. In some cases, a $3,500 grant may also be available.

Please note: Every attempt is made to reflect accurate and up to date information on housing programs displayed on this site. Some inaccuracies may exist. For verification contact a certified REALTOR member or a participating Lender.