CHFA Schools To Home: how it works and what you pay back

CHFA Schools To Home is a Colorado Housing and Finance Authority program for full-time Colorado public school employees. It pairs a fixed-rate first mortgage with a deferred second mortgage of up to 25% of the first mortgage amount for down payment and closing costs. Instead of interest on the second mortgage, the homeowner shares a percentage of the home’s appreciation with the Colorado Public School Permanent Fund when the loan is repaid. CHFA launched it in July 2026.

At least one borrower must be classified as a full-time employee by a Colorado preK-12 public school, school district, charter school, institute charter school, BOCES or innovation zone. That includes staff who are not teachers, such as paraprofessionals, bus drivers, custodians, nutrition staff and office staff, as long as the employer classifies the job as full-time. Borrowers also need a 620 minimum mid credit score, income at or below CHFA’s statewide limit, at least $1,000 of their own money in the purchase, the required courses, and approval by a CHFA Participating Lender.

Up to 25% of the first mortgage loan amount, and you do not have to take the full amount. On a $350,000 first mortgage, 25% is $87,500. The money can go toward the down payment, closing costs, prepaids or a principal reduction. CHFA’s flyer notes that restrictions and higher interest rates apply when assistance is used, so compare the payment with and without it.

When you sell, refinance, pay off the first mortgage or move out, you repay the second mortgage plus a share of the appreciation. CHFA calculates the share by dividing the original assistance amount by the original purchase price. Example from CHFA: $87,500 of assistance on a $437,500 purchase is 20%. If the home sells for $480,000, the appreciation is $42,500, the shared appreciation is $8,500, and the total owed is $96,000. If the home does not gain value, the shared appreciation is $0, but the full assistance amount is still owed.

CHFA’s Schools To Home pages do not list a first-time homebuyer requirement. News coverage has described the program both ways, and one report said applicants cannot currently own a home. Confirm with a CHFA Participating Lender before you count on it.

Repayment of the second mortgage and the shared appreciation is deferred until the end of the loan term or an earlier event: payoff of the first mortgage, sale or refinance of the home, or the home no longer being your primary residence. There are no monthly payments on the second mortgage and no prepayment penalty.

No. CHFA’s lender guidance limits the program to a fixed-rate conventional first mortgage through Fannie Mae’s HFA Preferred product. If you are a veteran, compare it with a VA loan before you decide.

CHFA does not allow another second mortgage on top of it. Its lender guidance says some other down payment grants may be allowed if you qualify, while its borrower materials say the program cannot be combined with any other program. Ask your lender which applies to your loan.

CHFA verifies full-time employment with an eligible employer before closing. CHFA’s published list of repayment events does not include leaving your school job: repayment is due at the end of the loan term, payoff of the first mortgage, sale or refinance, or when the home is no longer your primary residence. Confirm this with your lender before you close.

Negative appreciation counts as zero, so you would owe no shared appreciation. You would still repay the full second mortgage amount.

No. Foxtrot Realty is a real estate brokerage. CHFA does not make loans directly; you apply through a CHFA Participating Lender. Lake helps you find the home and can introduce you to participating lenders he has worked with.