01
At purchase
The borrower receives a first mortgage, subject to the current program loan limit, and may use the maximum CHFA assistance or a smaller amount alongside borrower down payment funds.
The Jordan Team
at Nova Home Loans
Mortgage Clarity Center
CHFA Schools to Home
A new path to attainable homeownership for Colorado public school employees.
CHFA Schools to Home offers eligible employees optional down payment assistance through a zero-interest deferred second mortgage. This guide explains who the program is designed for, how the assistance can be structured, and how its shared-appreciation repayment works.
This independent educational page is not produced or endorsed by CHFA. Program terms and eligibility requirements can change.
Source status
Program matrix effective August 3, 2026
National first-mortgage limit used: $832,750
Page reviewed September 8, 2026
Need the quick version?See the key points
- The assistance is a zero-interest second mortgage with no scheduled monthly payment before repayment is due.
- The original assistance is repaid later, even if the home does not increase in value.
- CHFA receives a calculated share of positive appreciation, while the remaining positive appreciation stays with the borrower.
- A sale, refinance, mortgage payoff, transfer, end of the loan term, or change in primary residence can trigger repayment.
- The calculator is an educational estimate. CHFA determines the accepted property value and final payoff.
01 · The program at a glance
How the assistance works over time
02
While it remains in place
The CHFA second has a 0% interest rate and no scheduled monthly payment before repayment is due.
03
At repayment
The original CHFA assistance and a calculated share of positive appreciation become due. The rest of the positive appreciation remains with the borrower.
The maximum assistance is optional. Borrower down payment funds can reduce the assistance amount and the percentage of future positive appreciation shared with CHFA. The assistance is not a grant or forgivable balance, and the original assistance principal is repaid later even when the home has not increased in value.
02 · Interactive tool
Estimate the repayment and appreciation split
Choose the maximum-assistance path or enter a custom combination of borrower down payment funds and CHFA assistance. This version applies the $832,750 national first-mortgage limit and does not evaluate higher county-specific limits. Then enter either a potential future value or your own appreciation assumption. The result separates the original assistance, CHFA's calculated share of positive appreciation, and the positive appreciation remaining with the borrower. The site does not forecast home values or recommend an assistance amount.
03 · How the math works
Why the two percentages are different
The same assistance amount is compared with two different numbers. One percentage checks the program limit. The other determines how positive appreciation is shared. The three-step scenario below uses CHFA's official example published on its Schools to Home webpage.
At purchase · Program limit
25%
$87,500 assistance ÷ $350,000 first mortgage
This shows that the assistance equals 25% of the first mortgage, which is the published maximum used in this example.
Later · Appreciation share
20%
$87,500 assistance ÷ $437,500 purchase price
This is the percentage applied only to positive appreciation. It uses the original purchase price, not the first mortgage.
CHFA's official example · Three steps
01 · Find the gain
$42,500
$480,000 potential future value minus the $437,500 purchase price.
02 · Split the gain
$34,000 / $8,500
The borrower retains $34,000. CHFA's 20% share is $8,500.
Borrower 80%CHFA 20%
03 · Add the two parts
$96,000
$87,500 original assistance plus $8,500 shared appreciation.
The borrower retains $34,000 of the $42,500 in positive appreciation shown. This is not total equity or sale proceeds. For illustrative purposes only. The estimator assumes the full original assistance remains outstanding.
Illustrative financing structure
How the two structures compare
Using the same $437,500 purchase price as CHFA's official Schools to Home example, this table isolates how much of the purchase is placed in the first mortgage and the deferred CHFA second.
| Same purchase$437,500 | CHFA Preferred Plus | CHFA Schools to Home |
|---|---|---|
| Down payment structure | 3% minimum down payment | 20% in CHFA's maximum-assistance example |
| First mortgage | $424,375 | $350,000 |
| 0% deferred CHFA second | $16,9754% of the first mortgage, below the current $25,000 cap | $87,50025% of the first mortgage |
| Shared appreciation | No | Yes, a calculated share of positive appreciation |
| First-mortgage difference | Reference structure | $74,375 less |
Illustrative financing comparison only. Both structures use zero-interest deferred CHFA assistance that is repaid after specified events. The comparison does not quote a rate or payment and does not determine eligibility, mortgage insurance, closing costs, prepaid items, or cash required at closing. Schools to Home may also require a calculated share of positive appreciation.
04 · When repayment can become due
A sale is not the only trigger.
The signed loan documents control the obligation. These are the principal repayment events described in the current program materials.
Sale or transfer
Selling or transferring the home can make the unpaid second mortgage and shared-appreciation payment due.
Refinance or first-mortgage payoff
Refinancing or paying off the first mortgage can trigger the CHFA obligation even when the home is not sold.
Full payoff of the CHFA second
Fully paying the second mortgage is a repayment event. The current note requires advance written notice.
Primary-residence change
Repayment can be triggered if the property is no longer used as the borrower's primary residence.
Scheduled maturity or default
The obligation is due at the end of the loan term or earlier if the loan documents permit acceleration.
05 · Who may qualify
A high-level screen, not an eligibility result
Schools to Home has borrower, employment, property, loan, education, and underwriting requirements. The page can explain the published framework, but only a participating lender can evaluate a complete scenario.
Employment
At least one borrower must be a full-time employee of an eligible Colorado public pre-K through grade 12 education employer. The program is not limited to teachers, and the home does not have to be in the employing school district.
Borrower requirements
The current matrix includes income, credit, minimum-contribution, education, and owner-occupancy requirements. The program is not limited to first-time buyers.
Property and loan requirements
Property type, appraisal, loan limits, mortgage insurance, automated underwriting, and other program rules also apply. A participating lender must review the complete borrower and property scenario.
06 · Common questions
Details worth understanding
Is the assistance a grant?
No. It is a deferred second mortgage. The assistance principal must be repaid when the loan reaches maturity or another repayment event occurs.
Does the CHFA second mortgage charge interest?
The current program documents state a 0% annual interest rate and no scheduled monthly payment before maturity. A calculated share of positive appreciation may also be due.
What if the home does not increase in value?
The shared-appreciation amount is zero when the accepted potential future value is at or below the original purchase price. The original assistance principal still remains due.
Can someone use less than the maximum assistance?
Yes. The current matrix states that the assistance is optional and may be less than the published maximum. In the custom calculator path, enter the total down payment and the borrower contribution. The calculator shows the CHFA assistance needed for the remainder.
What first-mortgage limit does this calculator use?
This version uses $832,750, the 2026 national one-unit conforming loan limit and the maximum listed in the current CHFA matrix. It does not evaluate higher county-specific limits. A participating lender must confirm the limit that applies to an actual loan.
Do selling costs or improvements reduce CHFA's appreciation calculation?
The current CHFA materials state that seller expenses and home-improvement costs are not subtracted from the appreciation used in the shared-appreciation formula.
Does the calculator determine eligibility or the final payoff?
No. It illustrates the published two-part formula using information and assumptions entered by the user. CHFA and a participating lender determine eligibility, accepted property value, and final payoff figures.
Sources and limitations
Where the information and numbers come from
This page uses CHFA's current borrower information, Schools to Home program matrix, published down payment assistance terms, and FHFA's 2026 national one-unit conforming loan limit. Program rules, limits, forms, and servicing procedures can change. Review the current CHFA materials and signed loan documents for the controlling terms.