CHFA Preferred
CHFA PreferredHomeownership support for Colorado buyers
CHFA Preferred℠ may help eligible Colorado homebuyers pair conventional financing with support for upfront homebuying costs.
Start with the right program fit
CHFA Preferred℠ is designed for eligible buyers using conventional financing. Depending on the option and borrower eligibility, assistance may be available for qualified costs connected with purchasing a primary residence.
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
Conventional financing
Designed to work with eligible conventional home loan options.
Upfront-cost support
Eligible borrowers may have access to assistance for qualified homebuying expenses.
Education and guidance
CHFA-approved homebuyer education and program documentation are part of the process.
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 Preferred at a glance
Program review updated August 24, 2026. Limits, rates, and product availability can change; the program matrix and lender rules in effect at lock control.
CHFA Preferred vs. other common paths
| Feature | CHFA Preferred | CHFA SmartStep | Standard conventional |
|---|---|---|---|
| First mortgage | 30-year fixed Fannie Mae HFA Preferred or Freddie Mac HFA Advantage purchase loan | 30-year fixed FHA, VA, or USDA Rural Development purchase loan | Conventional products vary by agency and lender |
| Assistance | Current CHFA materials identify a DPA second mortgage within the Preferred family | Eligible grant or deferred second-mortgage options under current CHFA rules | No CHFA assistance unless separately paired and approved |
| Current CHFA credit baseline | 620 decision credit score for scored borrowers | 620 decision credit score for scored borrowers; no-score cases may be permitted | Varies by product, automated underwriting, and lender |
| Income test | CHFA income limit using the lender’s loan-qualifying income calculation | CHFA income limit using the lender’s loan-qualifying income calculation | Usually no housing-agency income cap, though special products may have one |
| First-time buyer? | Not generally required | Not generally required | Not generally required |
| Education | CHFA-approved class required for purchasing borrowers | CHFA-approved class required for purchasing borrowers | Product-specific |
This comparison is educational, not a rate quote or approval. The best fit depends on total monthly payment, cash to close, mortgage insurance, property type, planned ownership period, and repayment terms—not only the assistance amount.
Eligibility, mortgage insurance, and assistance
Core checkpoints
- Purchase of an eligible Colorado primary residence
- 30-year fixed HFA Preferred or HFA Advantage financing
- Income within the current CHFA limit
- Minimum 620 decision credit score for scored borrowers
- CHFA-approved homebuyer education before closing
- Agency, automated-underwriting, property, and participating-lender approval
Mortgage insurance matters
CHFA’s current highlights state that charter-level private mortgage insurance coverage is capped at 18 percent for borrowers at or below 80 percent of area median income, using a CHFA-approved PMI provider. Actual PMI pricing depends on the loan-to-value ratio, credit profile, coverage, and provider. Compare the full payment and cancellation rules with FHA mortgage insurance, not just the initial rate.
| Assistance question | What to verify before relying on it |
|---|---|
| How much is available? | The current Preferred/Preferred Plus matrix, first-mortgage amount, $25,000 cap where applicable, and lender approval. |
| Is it a grant? | Do not assume. Current Preferred lender highlights identify a DPA second mortgage; confirm the exact locked product. |
| When is it due? | Review repayment events in the note, including sale, refinance, first-mortgage payoff, or loss of primary-residence status. |
| Does assistance change pricing? | CHFA notes that higher first-mortgage rates apply with its assistance options. Compare assistance with a no-assistance structure. |
How CHFA Preferred can fit a local purchase
In Denver, Adams, Arapahoe, Jefferson, Douglas, Boulder, and other Colorado counties, the practical question is often whether conventional financing plus assistance produces a sustainable payment after property taxes, homeowners insurance, HOA dues, and mortgage insurance. Condominiums also require project-level review; mountain and resort communities may add insurance, appraisal, and conforming-limit considerations.
Hypothetical Denver-area example
A buyer considering a $450,000 owner-occupied condo may qualify for a high-loan-to-value CHFA Preferred first mortgage and a CHFA DPA second mortgage for eligible upfront costs. The buyer still needs to budget for the required financial contribution, inspections, reserves if required, HOA dues, and any costs the assistance does not cover. Before writing an offer, Elite Lending Group would review borrower eligibility, the condo project, the current income limit, estimated PMI, and both assistance and no-assistance payment scenarios. This is an illustration only, not a quote or qualification.
Documents and common mistakes
Documents commonly requested
- Government-issued identification
- Recent pay statements and W-2s
- Tax returns when required
- Bank and asset statements
- Gift documentation, if applicable
- Purchase contract and addenda
- Homebuyer-education certificate
- HOA and condo documents, if applicable
- Explanations for credit or deposit issues
Mistakes to avoid
- Quoting an online income limit without confirming the current lock-date table
- Assuming assistance removes every cash-to-close requirement
- Comparing rates while ignoring PMI, fees, and second-mortgage repayment
- Opening credit, moving money, or changing employment before closing without review
- Waiting until late in the contract to investigate condo or property eligibility
- Treating a prequalification as final underwriting approval
CHFA Preferred FAQs
What is CHFA Preferred?
CHFA Preferred is a 30-year fixed-rate conventional purchase-loan family that uses Fannie Mae HFA Preferred or Freddie Mac HFA Advantage financing. Current CHFA rules and lender underwriting determine the exact option available.
Is CHFA Preferred only for first-time homebuyers?
No. CHFA Preferred is not generally limited to first-time buyers, although borrowers must meet current CHFA, agency, income, occupancy, and lender requirements.
What credit score does CHFA require?
CHFA’s current program highlights list a minimum decision credit score of 620 for all scored borrowers. A participating lender may apply additional underwriting requirements.
How much down-payment help is available?
For the CHFA Preferred family, current CHFA lender materials identify a CHFA DPA Second Mortgage Loan for eligible down payment, closing costs, and prepaids. The amount and availability must be confirmed under the matrix in effect when the loan is locked.
Does the assistance have to be repaid?
A CHFA DPA Second Mortgage Loan is repayable, with payment deferred until a specified event such as payoff of the first mortgage, sale or refinance, or the home no longer being the borrower’s primary residence. Review the note and disclosures before closing.
Is homebuyer education required?
Yes. CHFA says all borrowers purchasing with a CHFA first mortgage must complete a CHFA-approved homebuyer education class before closing.
Can I buy a Denver condo with CHFA Preferred?
Potentially. The buyer, unit, condominium project, occupancy, insurance, appraisal, and agency approval rules all must qualify. Condo review should begin early because project documents can affect timing.
Can I combine CHFA Preferred with other assistance?
Sometimes, but secondary financing must satisfy CHFA, agency, and participating-lender rules and lien-position requirements. Have every assistance source reviewed before relying on it in an offer.
How does Elite Lending Group provide CHFA access?
Elite Lending Group is a mortgage brokerage. We evaluate the fit and coordinate access through a CHFA-approved wholesale lender that executes and funds an eligible loan.
Verify the current rules
Reviewed by Dennie Friederichs, Founder and Mortgage Broker, Elite Lending Group, NMLS 2705443.
Elite Lending Group provides program comparison and application coordination through CHFA-approved wholesale lenders. CHFA and the participating lender make the controlling program and underwriting determinations.
Let’s explore your path to homeownership
A personal review is the best way to understand which CHFA option and wholesale lender guidelines may apply to you.