CHFA Schools to Home is a new Colorado teacher home buying program also available to other public-school employees. Schools to Home is one of the only teacher mortgage programs in Colorado. The Schools to Home program can provide down payment and / or closing cost assistance which could save you hundreds of dollars a month off your mortgage payment. Learn how to qualify for the CHFA Schools to Home buying program for teachers in Colorado:
CHFA Schools to Home Program
Can Teachers Get Help Buying a Home in Colorado?
If you’re a teacher, counselor, administrator, paraprofessional, or other public school employee in Colorado, you may qualify for one of the state’s most generous homebuyer assistance programs.
Many educators assume they need a large down payment or years of savings before buying a home. The good news? That isn’t always true.
The CHFA Schools to Home program was created specifically to help eligible Colorado public school employees achieve homeownership by offering substantial down payment and closing cost assistance.
Here’s what you should know.
What Is the CHFA Schools to Home Program?
The Schools to Home program is offered through the Colorado Housing and Finance Authority (CHFA) and is designed specifically for eligible public school employees.
Instead of requiring buyers to save tens of thousands of dollars before purchasing a home, the Colorado teacher home buying program provides a second mortgage that can help cover:
- Down payment
- Closing costs
- Both, depending on your needs
For many buyers, teacher mortgage programs makes homeownership possible much sooner than they expected.
Who Qualifies for this Colorado Teacher Home Buying Program?
You may qualify for the Schools to Home buying program if you’re a full-time employee of a Colorado:
- Public school
- School district
- Charter school
- Institute charter school
- BOCES
- Innovation Zone
Many people are surprised to learn that you don’t have to be a classroom teacher.
Eligible employees often include:
- Teachers
- Principals
- School counselors
- Administrative staff
- Librarians
- School psychologists
- Office personnel
- Other qualifying full-time school employees
If you’re unsure whether you qualify, it’s worth asking.
How Much Down Payment Assistance Can Teachers Receive?
One of the biggest advantages of the Schools to Home program is the amount of assistance available.
Eligible buyers may receive up to 25% of their first mortgage amount as a deferred second mortgage.
Example
Imagine you’re purchasing a home using a $350,000 first mortgage.
You could potentially receive up to $87,500 to help cover your down payment and closing costs.
For many buyers, that can dramatically reduce the cash needed to buy a home.
Do You Have to Make Monthly Payments?
No.
One feature many buyers appreciate is that the assistance loan for teacher mortgage programs is deferred, meaning there are no required monthly payments on the second mortgage while you live in the home as your primary residence.
The loan generally becomes due when you:
- Sell the home
- Refinance the first mortgage
- Pay off the first mortgage
- Move out and no longer occupy it as your primary residence
What Is Shared Appreciation?
This is usually the part buyers have the most questions about.
In exchange for receiving significant assistance upfront, borrowers agree to repay the assistance loan and share a percentage of the home’s appreciation when the loan is eventually repaid.
While that may sound intimidating at first, it’s important to compare that future cost with the benefit of purchasing a home years earlier instead of waiting to save a large down payment.
For many families, buying sooner means beginning to build equity much sooner.
Every situation is different, which is why I always recommend comparing this program with your other financing options before deciding.
Is This Better Than Other Down Payment Assistance Programs?
Not always—and that’s okay.
Colorado offers several excellent homebuyer assistance programs, and the best option depends on factors like:
- Your income
- Your down payment
- Your long-term plans
- Your monthly payment goals
- How long you expect to stay in the home
Sometimes, Schools to Home is the clear winner.
Other times, another CHFA or conventional financing option may provide greater long-term savings.
That’s why it’s important to compare your options rather than choosing a program based on the amount of assistance alone.
This is a brand-new Colorado teacher home buying program and there is no guarantee it will be offered in the years to come. There are very few teacher mortgage programs available in Colorado so it’s worth taking advantage of if you meet the qualification requirements.
FAQs: Colorado Teacher Mortgage Programs
Frequently Asked Questions About CHFA Schools to Home Program:
Can teachers get special home loans?
While there isn’t a mortgage exclusively for teachers, Colorado offers specialized assistance programs like CHFA Schools to Home that can make purchasing a home much more affordable for eligible public school employees.
Can teachers buy a house with little money down?
Yes. Depending on the loan program and your qualifications, many educators purchase homes with very little money out of pocket by combining low-down-payment financing with down payment assistance in Colorado.
Do school employees qualify?
Many do.
Eligible full-time employees may include teachers, counselors, administrators, office staff, librarians, and other employees working for qualifying Colorado public schools and school districts.
Is this only for first-time homebuyers?
Not necessarily. Eligibility depends on CHFA guidelines and program requirements, so it’s worth reviewing your individual situation with a lender.
Should I Use the Schools to Home Buying Program in Colorado?
This program has helped many Colorado educators become homeowners sooner than they thought possible.
However, every buyer’s financial picture is unique.
As a mortgage advisor, my job isn’t to recommend one program for everyone—it’s to compare your options so you can choose the loan that best fits your goals. Currently, this is the only Colorado teacher home buying program offered by CHFA.
Learn About this Colorado Teachers Home Buying Program
If you’re a Colorado teacher or public-school employee wondering whether the Schools to Home program is right for you, I’d be happy to review your eligibility, explain how the shared appreciation works, and help you compare it with other available loan options. Contact me, Jackie Gonzales, at Guild Mortgage Denver, to take the first step.
Buying a home is a big decision. Having someone who understands both the mortgage process and Colorado assistance programs can make all the difference.
Additional Information
Resources
- Teachers Next Door: National Home Buying Program
- Jackie Gonzales: Loan Officer at Guild Mortgage in Denver