CHFA SmartStep
CHFA SmartStepHomeownership support for Colorado buyers
CHFA SmartStep℠ may help eligible Colorado buyers combine government-backed financing with support for upfront homebuying costs.
Start with the right program fit
CHFA SmartStep℠ is designed for eligible buyers using certain government-backed home loan options. Depending on program selection and borrower eligibility, assistance may be available for qualified costs connected with a home purchase.
Program availability, eligibility, and underwriting requirements apply and may change. We will review your goals and help determine whether this or another home financing option may fit your situation.
What to know
Multiple loan paths
May be paired with eligible FHA, VA, or USDA Rural Development financing.
Purchase assistance
Eligible buyers may access support for qualified homebuying expenses.
Buyer preparation
Required education helps buyers understand the responsibilities of homeownership.
How the process works
Talk with us
Share your homebuying goals and financial picture.
Review eligibility
We evaluate applicable program and loan requirements.
Complete education
Finish any CHFA-required homebuyer education.
Move forward
We coordinate with an approved wholesale lender through closing.
CHFA SmartStep at a glance
Program review updated August 24, 2026. Current CHFA matrices, agency rules, rates, and lender underwriting at lock control.
Grant, second mortgage, or no assistance
| Structure | Current public CHFA description | Key trade-off |
|---|---|---|
| CHFA DPA Grant | Up to the lesser of $25,000 or 3% of the first mortgage; no repayment required | Higher first-mortgage rates apply; it may provide less assistance than the second-mortgage option |
| CHFA DPA Second Mortgage | Up to the lesser of $25,000 or 4% of the first mortgage; repayment deferred until specified events | Must be repaid; affects future sale, refinance, and payoff planning |
| SmartStep without CHFA DPA | Eligible SmartStep first mortgage without selecting CHFA assistance | More cash may be required at closing, but there is no CHFA assistance balance to repay |
CHFA says borrowers may use the grant or the second mortgage—not both—with one CHFA first mortgage. Compare total cost and long-term flexibility, not just cash saved at closing.
FHA vs. VA vs. USDA under SmartStep
| Loan path | Potential fit | Important checks |
|---|---|---|
| FHA | Buyers who value flexible FHA underwriting and a low minimum down payment | FHA mortgage insurance, appraisal/property standards, county loan limits, and borrower qualification |
| VA | Eligible veterans, service members, and certain surviving spouses | Certificate of Eligibility, entitlement, funding fee or exemption, residual income, and VA property standards |
| USDA Rural Development | Eligible buyers purchasing an eligible primary residence in a qualifying rural area | Property address eligibility, household-income rules, guarantee fee, and USDA underwriting |
Common CHFA checkpoints
- CHFA income limit using lender qualifying income
- 620 decision credit score for scored borrowers
- $1,000 minimum financial investment under current general CHFA rules
- Primary-residence purchase
- CHFA-approved homebuyer education before closing
- Agency, property, automated-underwriting, and lender approval
Not every benefit stacks
A VA or USDA loan may already reduce the down-payment need, but buyers can still face closing costs, prepaids, reserves, inspections, or funding fees. Assistance can be useful, yet a higher CHFA first-mortgage rate or a repayable second may outweigh the upfront benefit for some borrowers. Review both assisted and unassisted structures.
How SmartStep changes by location
SmartStep is available statewide through participating lenders, but the underlying loan program still shapes the property search. FHA and VA may fit Denver metro purchases, including eligible condos, while USDA is driven by the property’s rural-eligibility map and generally will not fit a central Denver address. Colorado’s mountain and resort markets can raise additional loan-limit, appraisal, insurance, HOA, and property-type questions.
Hypothetical Denver-area example
A buyer considering a $400,000 primary residence may qualify for FHA SmartStep but have limited funds after earnest money and inspections. Elite Lending Group would compare the current CHFA grant, the larger deferred second-mortgage option, and an FHA loan without CHFA assistance. The analysis would include the first-mortgage rate, FHA mortgage insurance, estimated cash to close, future refinance flexibility, and the $1,000 minimum financial investment. This is an illustration only, not a quote or qualification.
Documents and common mistakes
Documents commonly requested
- Photo identification
- Pay statements, W-2s, and income history
- Tax returns when required
- Bank and asset statements
- Gift-fund documentation, if used
- Purchase contract
- Education certificate
- VA Certificate of Eligibility, if applicable
- USDA household information, if applicable
- Property and HOA documents
Mistakes to avoid
- Assuming SmartStep is one identical loan instead of three possible agency paths
- Calling the deferred second “free money”
- Using an old income limit or rate from a third-party website
- Forgetting that CHFA assistance can change first-mortgage pricing
- Ignoring VA, FHA, or USDA property eligibility until after the offer
- Moving funds or opening new credit during underwriting without review
CHFA SmartStep FAQs
What is CHFA SmartStep?
CHFA SmartStep is a CHFA 30-year fixed-rate purchase-loan family for eligible FHA, VA, or USDA Rural Development financing, with optional CHFA assistance under current program rules.
Is SmartStep only for first-time buyers?
No. SmartStep is not generally limited to first-time homebuyers, but every borrower, property, and first-mortgage program must meet current requirements.
Which loan types can SmartStep use?
Current CHFA program highlights list FHA, VA, and USDA Rural Development 30-year fixed-rate purchase loans.
What are the current assistance choices?
CHFA’s public guidance lists a grant up to the lesser of $25,000 or 3 percent of the first mortgage, or a deferred second mortgage up to the lesser of $25,000 or 4 percent. A borrower may not receive both with the same CHFA first mortgage, and higher first-mortgage rates apply.
Does the second mortgage have a monthly payment?
CHFA describes repayment as deferred until events such as first-mortgage payoff, sale or refinance, or the home no longer being the borrower’s primary residence. Review the current note and disclosures for exact terms.
Do I still need money of my own?
Yes. CHFA currently requires a $1,000 minimum financial investment in addition to any remaining down-payment or closing-cost need. Eligible gifts may be used under current rules, subject to documentation.
Is homebuyer education required?
Yes. All borrowers purchasing with a CHFA first mortgage must complete a CHFA-approved homebuyer education class before closing.
Can SmartStep work with a Denver condo or a rural Colorado home?
Potentially. FHA, VA, and USDA each have different property and location rules. A Denver condo may require project approval; USDA eligibility depends on both the property location and borrower requirements.
How does Elite Lending Group provide access?
Elite Lending Group is a mortgage brokerage that coordinates with CHFA-approved wholesale lenders. The participating lender executes and funds any eligible CHFA loan.
Use current primary sources
Reviewed by Dennie Friederichs, Founder and Mortgage Broker, Elite Lending Group, NMLS 2705443.
Elite Lending Group compares the applicable first-mortgage and CHFA assistance structures and coordinates access through CHFA-approved wholesale lenders. Final program and underwriting decisions belong to CHFA and the participating lender.
Let’s explore your path to homeownership
We can compare applicable financing paths and explain the program requirements without assuming that one option fits every buyer.