Colorado Housing and Finance Authority (CHFA) Home Loans

Did you know that you could earn tax credits of up to $2000 per year through CHFA home loans?

What is the Colorado Housing and Finance Authority?

Colorado Housing and Finance Authority LogoThe Colorado Housing and FInance Authority provides fixed rate financing to homebuyers, small to medium businesses, and multi-family rental housing developers.In existence since 1973, CHFA’s mission is to finance the places that people live and work throughout Colorado.


How do CHFA Loans work?

CFHA partners with banks, mortgage lenders, developers and local governments to offer Colorado citizens affordable loans. These loans are offered based on a set of specific guidelines and are designed to help Coloradoans buy their own homes.

CHFA Programs for Home Buyers:

  • Available for first time and non-first time homebuyers
  • Buyers with higher (680+) FICO scores, who don’t want to pay mortgage insurance
  • Buyers with lower credit scores (620) or no credit score
  • Buyers who would like to utilize CHFA’s second mortgage assistance to help with down payments and closing costs

CHFA home loans are available for:

  • Very low mortgage amounts – CHFA has no floor
  • Deed restricted properties
  • Manufactured homes!
  • No mortgage insurance loans – 97% Loan to Value purchase or refinancing

CHFA Programs for Developers:

Colorado is experiencing a shortage of affordable rental properties. This offers opportunities for multifamily developers.

  • The Colorado Housing and Finance Authority is Colorado’s only allocating agency for federal Low Income Housing Tax Credits (LIHTC)
  • CHFA can help enterprising developers secure equity towards affordable apartment development.
  • Loan programs and underwriting guidelines can be used to build or renovate units for lower income individuals offering lower fixed interest rates on long term financing.
  • Income and rent limits apply.

How Do You Get a CHFA Loan?

  • List of lenders for CHFA home buyersHome buyers must take a training course, either live or online.
  • Loans must follow FHA, VA, RD or Fannie Mae credit underwriting guidelines.
  • Meet the Income Limits for your county.
  • Contact a CHFA Lender (See list at right)
  • Determine what type of loan product is best for you:
    • CHFA Advantage – Eligible borrowers must have a mid credit score of 680 or higher.
    • CHFA SmartStep and CHFA SmartStep Plus – CHFA SmartStep Plus includes a 30 year fixed rate 2nd mortgage loan to assist with down payment and/or closing costs.
    • CHFA HomeOpener and CHFA HomeOpener Plus – These programs have income limits, and to qualify, you must attend a CHFA-approved homebuyer education class, mentioned above. You must also contribute at least $1,000 of your own funds to the purchase of the home. The property must be occupied by the homebuyer and can not be used as a rental property.
    • CHFA HomeAccess – For people with disabilities or for parents of children with disabilities.
    • CHFA SectionEight and SectionEight Plus Homeownership programs – For renter who receive Housing Assistance Payments (HAP) from Public Housing Authorities (PHA)

How to Receive MMC Tax Credits Under CHFA 

An MCC is a certificate that authorizes a qualified homebuyer to claim a percentage of the mortgage interest paid annually as a federal tax credit with the IRS. Claimed when filing your taxes, this is a dollar-for-dollar reduction of federal income taxes due. This increases the amount of income a homebuyer has available for monthly mortgage payments. The remaining mortgage interest continues to qualify as an itemized deduction on the homebuyer’s federal income taxes – just like it has in the past. This MCC is valid for as long as your original mortgage is outstanding and you occupy the home as your Principal Residence.

These tax credits are available for properties in targeted areas. As of this writing, Morgan and Weld counties are targeted areas.

Help for Home Buyers!

CHFA programs are designed to help you better afford a home. Colorado recognizes that our state is stronger when more people own their own homes. These programs are available to both first time and existing home owners. If you are considering buying a house this spring, take the time to learn about CHFA programs. You can learn more at

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