CHFA FirstStep - First Time Home Buyer Program

CHFA FirstStep is a great program for Colorado First Time Buyers who are looking to buy but don’t have a ton of money for down payment. Using the CHFA FirstStep Plus program allows you to buy with no money down using CHFA’s second mortgage down payment assistance option.

Here is how the CHFA FirstStep Program works:
First of all, you must be a first time home buyer (someone who has not owned a home in the most recent three years).
If you are not a first time home buyer then you must meet one of the two exceptions:
1. Be a qualified veteran
2. Purchase in a targeted area

CHFA FirstStep has income limits by County which change every year. In the Denver Metro area, as of June 2020, the income limits are $100,000 for a household of 2 or less and $115,000 for a household of 3 or more.
Targeted areas have slightly higher income limits.

There are also purchase price limits for the CHFA FirstStep program, which for 2020, are $510,400 for Denver Metro. These change each year as well and vary by County.

To be eligible you must purchase a single family home, townhome, condo or manufactured home that you plan to occupy as your primary residence.

The CHFA FirstStep program comes in two programs:
FirstStep which is a 30 year fixed FHA loan with a 3.5% down payment or…
FirstStep Plus which is the same thing but it comes with the optional second mortgage.

The CHFA FirstStep Plus program’s second mortgage is 4% of the first mortgage amount and has no monthly payments and 0% interest. Just pay it off when you sell, refinance or reach a $0 balance.

The second mortgage can be used for down payment or closing costs with the only requirement being that you contribute at least $1,000 of your own money. Normally this isn’t an issue as described through the loan calculations in the video.

All CHFA programs require a homebuyer education class to be taken by all borrowers. Right now classes are being offered online for free (normally online classes have a cost) due to COVID-19.

Helpful Links & Related Videos:

Whenever you're ready...here are some ways we can assist with your next home purchase:
📙 Download our Homebuyer Guide: Things to Consider When Buying a Home.

🤑 Get the list of Colorado’s No & Low Down Mortgage Options so you can purchase your next home with less money than you thought possible.

🚀 Want a boost in your credit score? Most advice about credit is generic or misleading and can hurt your home loan qualifying position. Take advantage of our Credit Booster Program and we'll provide the exact steps you need to take to boost your credit score fast with a home purchase and mortgage pre-approval as the top priority!

⛰️ Want a pre-approval that makes buying a home easy? Find out how our Rock Solid Pre-Approval provides you with the confidence you can buy a home and are utilizing the best home loan option to do so.

Scott Wynn
Wynn & Eagan Team at Citywide Home Loans
Mortgage Advisor
[phone]

This is not a commitment to lend. Program restrictions apply.
11990 Grant Street, Suite 120, Northglenn, CO 80233

[joshmcck]

I guess my first question is the income limits is you can’t make over that right??

[charmainerael]

When using chfa can you not buy down the rate? Does chfa carry a higher interest rate than none down payment assistance with fha

[joshmcck]

Also can someone who’s credit does not show up used as long as there is a borrower who meets that credit limit correct??

[angelaramirez]

Does CHFA require the borrow to have a certain amount of cash reserves to be approved?

[arianna]

Do you have to put a down payment at all

[jonathanowens]

what class is it that you haft to take. and where do i access it.

[AshButton]

We got approved for a 350, 000 home fha and chfa I’m still trying to figure out why our lender is saying we need anywhere from 8, 000-11, 000 to close! I’m so lost because we know friend who were able to get in their home for little as 2000 or less!!

[petteway]

Are their any other factors that can disqualify one from taking advantage of CHFA?

[curtisrowell]

Is there a tradeoff using CHFA? Meaning would it raise the interest rate?

[curtisrowell]

Do these loan programs affect your debt to income ratio? I need to know this because I am only approved for around 350k and cant use these programs if this means my debt to income ratio will increase causing my preapprpval to go lower than 350k...i need every penny of my approval amount...please let me know

[jetskill]

Do you have to repay the second mortgage at the end of then 30 years?