CHFA Schools To Home is Colorado's down payment help for public school employees. The state legislature told CHFA to build it, and it's funded by the Public School Permanent Fund. It's the largest assistance CHFA has offered: a second mortgage of up to a quarter of the first mortgage. The catch is shared appreciation. When the loan comes due, the owner pays back the help plus a share of the home's gain in value. The name makes people think "teachers only." It's much wider than that. Here's how I teach agents to spot these buyers and explain the trade honestly.
The short answer
The buyer gets a fixed-rate CHFA first mortgage plus a second mortgage of up to 25% of the first mortgage amount, per CHFA's program page. There's no monthly payment on the second. It comes due at the end of the term or earlier if the owner sells, refinances, pays off the first mortgage, or stops living in the home. At that point the owner repays the help plus a percentage of the appreciation. CHFA requires a special course, "Understanding Your Financial Commitment," on top of the regular homebuyer class. Full details are on CHFA's Schools To Home page.
Who qualifies
CHFA's definition is any person employed full time (as classified by their employer) by a Colorado preK-12 public school, school district, charter school, institute charter school, BOCES, or innovation zone. That means:
- Teachers, counselors, nurses, psychologists and librarians
- Paraprofessionals, front office staff and registrars
- Bus drivers, custodians, maintenance and food service staff
- Principals, district office staff, IT and coaches, if full time
What doesn't count, per Brian's eligibility guide: private school staff, college and university staff, and part-time or substitute roles. Only one borrower on the loan has to be the school employee. The buyer doesn't have to buy in the district where they work. Lenders verify the employer, and CHFA points them to the Colorado Department of Education's school list.
Step by step
- Ask where they work. "Do you or anyone buying with you work full time for a public school or district?" Ask it on every buyer call.
- Confirm full-time status. A recent paystub or HR letter that shows full time.
- Qualify on CHFA's normal rules. Credit floor, income limit, the minimum contribution, primary residence. See CHFA income and price limits.
- Book both courses. The regular CHFA homebuyer class and "Understanding Your Financial Commitment." Both are required.
- Use a lender who has closed these. Brian's Aurora guide says the program uses a conventional first mortgage. That matters on HUD homes and with other programs. Confirm with the lender.
- Price two versions. Schools To Home vs standard CHFA help. The lender shows both. See CHFA grant vs second mortgage.
- Watch the price. Overpaying hurts twice: at purchase, and again when the appreciation share is figured. Pull good comps.
How shared appreciation works (illustration only)
Brian's Aurora guide describes the share as the help divided by the purchase price, locked at closing. Here's a simple version.
| Item | Example |
|---|---|
| Purchase price | $500,000 |
| Schools To Home help | $100,000 |
| Share rate ($100,000 / $500,000) | 20% |
| Later sale price | $600,000 |
| Gain in value | $100,000 |
| Appreciation share owed (20% of gain) | $20,000 |
| Total owed on the second at sale | $100,000 + $20,000 = $120,000 |
If the home doesn't gain value, Brian's guides say the share is zero, but the $100,000 help is still owed.
Illustration only. A lender sets the real terms. CHFA sets the actual shared appreciation formula, which is explained in the required course. Mortgage insurance, taxes, homeowners insurance, closing costs and selling costs aren't shown. The annual percentage rate (APR) would differ from any note rate. This is not an offer of credit. Program rules change. Check current rules at chfainfo.com.
How to explain it to your client
"Because you work full time for a public school, you may qualify for CHFA Schools To Home. It can cover a big part of your down payment with no monthly payment. Here's the trade: when you sell or refinance, you pay that money back plus a share of what the home gained in value. You still own the home, and you keep the rest of the gain. CHFA has a short course that walks through the math, and your lender will compare it with the regular state help so you can choose."
Watch-outs
- It's not a grant. Never call it free money. It's a loan plus a share of the gain.
- Refinancing triggers it. A future rate-drop refinance means paying the help and the share at that time.
- Moving out triggers it. They can't keep it as a rental with the help in place.
- Improvements can raise the share. The gain is based on value, so a big remodel can increase what's owed.
- It may not stack. Brian's guides say it can't be combined with other CHFA help or another second lien. Confirm with the lender.
- Fair housing. Talk about the program and the home. Never steer buyers toward or away from areas based on schools.
Further reading
- CHFA Schools-to-Home Program: The Complete Guide on kennarealestate.com
- Schools-to-Home Shared Appreciation Explained on kennarealestate.com
This is training for real estate agents. It isn't legal, tax or lending advice. A licensed loan officer sets loan terms. Check with your managing broker.
Questions
Do you have to be a teacher?
No. Any full-time employee of an eligible public school employer can qualify.
Does the spouse have to work for a school too?
No. Only one borrower has to be the school employee.
Is there a monthly payment on the help?
No. Repayment is deferred until it comes due.
What if the home loses value?
Brian's guides say no appreciation share is owed, but the help itself is still repaid.
Is it only for first-time buyers?
Brian's Aurora guide says CHFA's matrix doesn't require first-time status. Confirm current rules.
Does the state own part of the home?
No. The buyer holds title. The fund holds a second lien and a right to the appreciation share.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.