CHFA Down Payment Help For San Miguel County Buyers

Buying in Norwood can feel out of reach when the down payment and closing costs add up. If you are eyeing a home in San Miguel County, you may not need as much cash as you think. Colorado Housing and Finance Authority (CHFA) offers down payment help that can shorten the path to keys in hand. In this guide, you’ll learn how CHFA assistance works, who qualifies in Norwood, and the exact steps to get started. Let’s dive in.

What CHFA down payment help is

CHFA offers two main ways to reduce your cash to close when you use a CHFA first mortgage:

• CHFA DPA Grant. A non‑repayable grant equal to the lesser of 3% of your CHFA first mortgage or $25,000. You do not pay this back. See CHFA’s overview.
• CHFA DPA Second Mortgage Loan. A typically 0% interest, subordinate loan equal to the lesser of 4% of your first mortgage or $25,000. Repayment is usually deferred until you pay off, sell, refinance, or no longer live in the home as your primary residence. Details from CHFA.

Some borrowers may also qualify for added help through CHFA programs such as FirstGeneration, which can provide up to $25,000 for eligible first‑generation buyers. Learn about FirstGeneration.

Who qualifies in Norwood

To use CHFA assistance, you must:

• Work with a CHFA Participating Lender and complete a CHFA‑approved homebuyer education course before closing. How to get a CHFA loan.
• Meet program income and purchase‑price limits and typical credit standards. Many CHFA purchase programs use a minimum mid‑credit score of 620 and require a minimum borrower contribution, commonly $1,000. Program matrices and requirements.

For San Miguel County, the CHFA purchase price limit is listed at $806,500 in CHFA’s Income & Purchase Price Limits PDF effective May 19, 2025. Always verify the latest numbers and the program column that applies to you. Check CHFA limits for San Miguel County.

How CHFA pairs with your loan

CHFA down payment assistance is only available with a CHFA first mortgage. Your lender will help you choose the best fit, such as SmartStep, FirstStep, Preferred, or FirstGeneration. Some CHFA products work with FHA, VA, or USDA first mortgages, while others use conventional financing. Confirm the pairings that fit your situation with your lender. See CHFA’s program matrix.

Step‑by‑step for Norwood buyers

1. Confirm the price target. Check that the home you want in Norwood fits within the applicable CHFA purchase‑price limit for San Miguel County. Review CHFA’s limits PDF.

2. Talk with a CHFA Participating Lender. CHFA does not lend directly. A participating lender will prequalify you and explain which CHFA products you can use. Start here.

3. Verify eligibility. Your lender will confirm income limits, credit score, and the required minimum borrower contribution. Plan to complete CHFA’s homebuyer education early to avoid delays. Course requirement details.

4. Choose your DPA type. Decide with your lender whether a non‑repayable grant (up to 3% or $25,000) or a deferred‑payment second mortgage (up to 4% or $25,000) suits your goals. Compare CHFA options.

5. Lock and document. Your lender will prepare your loan application and the CHFA compliance documents. CHFA has updated some second‑mortgage forms and disclosures for locks on or after April 7, 2025. See the program update.

6. Close with confidence. Your CHFA assistance will appear on your Loan Estimate and Closing Disclosure. If you used the second mortgage, repayment is generally deferred until you sell, refinance, pay off, or move out of the home as your primary residence. More from CHFA.

Why this matters in Norwood

Norwood often sees home prices that are lower than resort submarkets elsewhere in San Miguel County. That means many local purchases can fit under CHFA’s county purchase‑price limit, making CHFA a practical tool to reduce the cash you need to close. Your exact eligibility will depend on your income, the property price, and the CHFA program you use, so it pays to verify early.

Check USDA eligibility, too

Depending on the exact address, some Norwood properties may qualify for USDA Rural Development loans, which offer zero‑down financing. If your address is USDA‑eligible, your lender can help you compare USDA with CHFA options. Check USDA eligibility for a specific address.

Key timing and paperwork tips

• Complete homebuyer education early. It is required before closing for CHFA loans and avoiding last‑minute certificates can keep your timeline on track. Learn the steps.
• Expect added signatures if you use the CHFA second mortgage. CHFA updated second‑mortgage disclosures and forms for locks on or after April 7, 2025, so your lender will follow the newest checklist. See CHFA’s notice.
• Plan for small‑market dynamics. In a town like Norwood, inventory can be thin and timelines can stretch. Build in a little extra time for CHFA documentation and coordination with your lender.

Common tradeoffs: grant vs second mortgage

• Grant: Non‑repayable and straightforward. The total is up to 3% of your first mortgage or $25,000. This can be a fit if you want the simplest path with no future repayment. Program details.
• Second mortgage: Larger percentage at up to 4% of your first mortgage or $25,000, typically 0% interest, with repayment usually deferred until you sell, refinance, pay off the first mortgage, or move out. This can stretch your funds further now, with payback later. Program details.

Your next steps in Norwood

• Review CHFA’s income and purchase‑price limits for San Miguel County. Check the latest PDF.
• Speak with a CHFA Participating Lender about prequalification and product pairing. Start the process.
• Complete CHFA‑approved homebuyer education early.
• If you are considering a rural address, run the property through the USDA eligibility tool. Check an address.

If you want a local, calm path to buying in Norwood, connect with Maggie Martin to align your financing plan with the right homes and neighborhoods across San Miguel County.

FAQs

What is CHFA down payment assistance for Norwood buyers?

• CHFA offers a non‑repayable grant up to 3% of the CHFA first mortgage or $25,000, and a typically 0% second mortgage up to 4% or $25,000, used with a CHFA first mortgage. See CHFA’s DPA page.

Do I have to repay CHFA assistance if I buy in San Miguel County?

• You do not repay the CHFA grant. The CHFA second mortgage is repayable, but repayment is usually deferred until you sell, refinance, pay off the first mortgage, or move out of the home as your primary residence. Program details.

What are the CHFA purchase‑price and income limits in San Miguel County?

• CHFA lists a purchase‑price limit of $806,500 for San Miguel County effective May 19, 2025; income limits vary by program and household. Always verify the latest numbers in CHFA’s PDF. Check current limits.

Can I use CHFA with FHA, VA, or USDA loans in Norwood?

• Some CHFA programs pair with FHA, VA, or USDA first mortgages. Your participating lender will advise which combinations fit your credit, income, and property. See CHFA’s program matrix.

Is USDA zero‑down financing available for Norwood addresses?

• It depends on the exact address. Use the USDA eligibility tool to check property eligibility, then have your lender compare USDA with CHFA options. Check USDA eligibility.

What credit score and buyer contribution do I need for CHFA?

• Many CHFA purchase programs use a typical minimum mid‑credit score of 620 and require a minimum borrower contribution, commonly $1,000. Final requirements depend on the specific CHFA program. How CHFA loans work.