By Rogelio Rodriguez
Realtor® Vida Properties | eXp Realty
📞 720-724-8187 | 📧 rogelio@vidabroker.com
As many of you know, part of my career was spent as a HUD-approved housing counselor, where I had the privilege of collaborating with CHFA (Colorado Housing and Finance Authority) through homebuyer classes. I’ve seen firsthand how powerful CHFA programs can be in turning the dream of homeownership into reality for Colorado families.
Today, I want to share some good news and also remind you of the tools CHFA offers — especially when it comes to down payment assistance (DPA).
🆕 What’s New?
As of September 30, 2025, CHFA will allow borrowers using government-backed loans (FHA, VA, USDA) to buy down their interest rate permanently using DPA or seller concessions.
Here’s how it works:
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You can use 0.625% of your loan amount to reduce your interest rate by 0.125%
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Funds can come from:
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CHFA’s down payment assistance
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Seller concessions (negotiated during the offer)
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This is a permanent buydown — not a temporary 2-1 or 3-2-1 structure
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The cost and rate savings are subject to daily market changes
📌 Note: Not yet available for CHFA conventional loans
💡 Since DPA borrowers typically receive slightly higher interest rates, this new feature can help offset those costs and reduce monthly payments for the life of the loan.
🛑 Important Reminder:
CHFA does not lend directly — it works through approved participating lenders. That’s why it’s important to work with the right agent and lender team who understand how to navigate the CHFA process effectively.
💡 CHFA Down Payment Program Summary
Many homebuyers still assume they need $15K–$30K saved to buy a home. But CHFA’s programs are designed to close that gap — whether you’re a first-time buyer or simply need help covering upfront costs.
CHFA offers two primary assistance options:
✅ CHFA DPA Grant
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Up to 3% of your loan amount
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Never needs to be repaid
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Available with both FHA and conventional loans
✅ CHFA Second Mortgage (Deferred Loan)
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Up to 4% of your loan amount
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0% interest, no monthly payment
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Repaid only when you refinance, sell, or pay off the home
Important note: Using DPA may mean a slightly higher interest rate, which is why the new buydown option is a game-changer for budget-conscious buyers.
🏘️ Why This Matters Right Now
We’re seeing a shift in the Colorado housing market. Compared to the fast-paced frenzy of the last few years, things are cooling — and that’s a major advantage for buyers.
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Homes are staying on the market longer
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Inventory is higher, which means more options and less competition
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Sellers are more willing to offer concessions, which can be used for closing costs or this new buydown feature
That means buyers today have more time, more options, and more negotiating power — especially when using CHFA’s programs.
🎓 Start Here: Free CHFA Homebuyer Classes
Education is a required part of the CHFA loan process — and it’s the best way to begin. You can take free CHFA homebuyer classes in Spanish and English, in person or pay a fee to take online.
These classes help you:
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- Budget and prepare financially
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Understand credit and loan types
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Learn the homebuying process step-by-step
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Obtain your required certificate (valid for 1 year)
📞 Ready to Explore Your Options?
If you’re curious about what programs you qualify for, or how much home you can afford with CHFA assistance, let’s set up a time to talk. Visit my online calendar to meet in person, by phone, or over Zoom — whatever works best for you.
You can also call me at (720) 724-8187 or send a message at rogelio@vidabroker.com and let’s get your homeownership journey started with the right tools and the right guidance.
Rogelio Rodriguez
