If you're a teacher or public school employee trying to buy a home in Colorado, there's a new homebuyer assistance program you should know about.
And this isn't your typical program offering a few thousand dollars toward closing costs.
The CHFA Schools to Home program can provide eligible Colorado public school employees with a deferred second mortgage worth up to 25% of their first mortgage loan amount to help with a down payment, closing costs, and eligible prepaid expenses.
Even more important:
You don't necessarily have to be a teacher to qualify.
The program can potentially be available to other full-time employees of eligible Colorado public schools and school organizations.
That means teachers aren't the only Colorado school employees who should be asking about this program.
Depending on eligibility, it could potentially apply to full-time school employees working in many different roles.
And the amount of assistance can be substantial.
As of September 2026, 85 Colorado homebuyers had already used Schools to Home, and CHFA estimated its initial funding would assist approximately 125 purchases with an average assistance amount of about $80,000 per home.
There's an important catch, though.
This isn't free money.
Schools to Home uses a shared-appreciation model, meaning borrowers eventually repay the second mortgage and may also owe a portion of the home's appreciation.
So if you're a Colorado teacher, school employee, administrator, counselor, paraprofessional, custodian, bus driver, office employee, or other full-time public school employee thinking about buying a house, here's what I'd want you to understand before deciding whether CHFA Schools to Home makes sense for you.
Quick Answer: CHFA Schools to Home is a Colorado homebuyer assistance program for eligible full-time public school employees. It combines a fixed-rate first mortgage with a deferred second mortgage of up to 25% of the first mortgage amount that can help cover a down payment, closing costs, and eligible prepaid expenses. There is no monthly payment on the second mortgage while repayment is deferred, but the assistance must eventually be repaid and includes a shared-appreciation component. Eligibility and actual assistance depend on CHFA requirements and lender underwriting.
What Is the CHFA Schools to Home Program?
CHFA Schools to Home is a Colorado homeownership program administered by the Colorado Housing and Finance Authority (CHFA).
The program was authorized through Colorado Senate Bill 25-167, legislation enacted in 2025 that created a shared-equity down-payment assistance program for public school employees. The legislation requires the program to help public school employees achieve affordable homeownership while allowing appreciation sharing between the program and borrower.
CHFA launched Schools to Home in July 2026.
The basic idea is relatively simple:
You use a qualifying fixed-rate first mortgage to purchase the home.
Schools to Home can then provide a second mortgage of up to 25% of the first mortgage amount to help with the down payment, closing costs, and eligible prepaid expenses.
The second mortgage doesn't require a normal monthly payment while repayment is deferred.
Instead, it is repaid later when certain triggering events occur.
That can address one of the biggest obstacles I see prospective Colorado homebuyers struggle with:
Coming up with enough cash to actually purchase the home.
How Much Down-Payment Assistance Can Colorado School Employees Receive?
This is the part that gets people's attention.
The CHFA Schools to Home second mortgage can be up to 25% of your first mortgage loan amount.
Here's a simplified hypothetical example:
Suppose your CHFA first mortgage is:
$400,000
Twenty-five percent of $400,000 is:
$100,000
So the maximum assistance based purely on that example would be:
Up to $100,000
That does not mean every school employee buying a home receives $100,000.
Your actual financing and assistance depend on the purchase, loan structure, income, credit, CHFA requirements, lender underwriting, and other program rules.
But it demonstrates why Schools to Home is getting attention.
We're potentially talking about tens of thousands of dollars, not simply a small closing-cost credit.
How Much Are Schools to Home Buyers Actually Receiving?
We already have some early real-world information.
By September 2026, 85 people had used the Schools to Home program, according to CHFA information reported by Chalkbeat.
CHFA estimated that the initial funding would help approximately 125 home purchases, with an average assistance amount of approximately:
$80,000 per home.
Think about what that could mean for someone who's been saving for a house.
Maybe you've been able to handle the potential monthly payment.
Maybe your employment is stable.
Maybe your credit is in good shape.
Maybe you've even found homes you could realistically afford.
But you keep running into the same obstacle:
The upfront cash.
Down payment.
Closing costs.
Prepaid expenses.
Moving.
Emergency reserves.
That's the specific problem this program is designed to help address.
Who Qualifies for CHFA Schools to Home?
This is where I think some people may incorrectly assume:
“I'm not a teacher, so this doesn't apply to me.”
Don't make that assumption.
According to CHFA, Schools to Home is available to an individual employed full-time by an eligible:
Colorado preK–12 public school
Public school district
Charter school
Institute charter school
Board of Cooperative Educational Services (BOCES)
Innovation zone
At least one borrower must be a qualifying full-time public school employee, and the participating lender must verify that employment.
So this program is broader than classroom teachers.
The important question isn't simply:
“Am I a teacher?”
It's:
“Am I a full-time employee of an employer that qualifies under the current CHFA Schools to Home rules?”
That's something a CHFA Participating Lender can verify.
Is Schools to Home Only for Colorado Teachers?
No.
This is probably one of the most important search questions to answer clearly.
Schools to Home is designed for Colorado public school employees, not exclusively classroom teachers.
CHFA's current definition focuses on whether the borrower is a full-time employee of an eligible public-school employer.
So if you're working full-time in another role within Colorado's public school system, don't automatically assume you're excluded.
Have a participating lender verify your employer and eligibility.
Do You Have to Be a First-Time Homebuyer?
This is another area where I would be careful about relying on something you heard secondhand or saw in an older social-media post.
The enacted legislation says the program should prioritize first-time homebuyers, but the current program requirements should be verified directly with CHFA and a participating lender for the specific borrower.
In other words:
Don't rule yourself in or out based solely on whether you've owned a home before.
Have your situation checked against the current program requirements.
What Credit Score Do You Need for CHFA Schools to Home?
CHFA's current program materials list a minimum decision credit score of 620 for scored borrowers.
But a credit score is only one part of mortgage qualification.
A lender will also evaluate things such as:
Income
Employment
Debt
Debt-to-income ratio
Assets
Credit history
Property eligibility
Loan guidelines
CHFA program requirements
So having a 620 credit score doesn't automatically mean you qualify.
And if you're not ready today, that doesn't necessarily mean homeownership is off the table forever.
Sometimes the first step is simply determining what needs to change to put you in a better buying position.
What Type of Mortgage Does Schools to Home Use?
CHFA currently describes Schools to Home as using a 30-year fixed-rate Fannie Mae HFA Preferred first mortgage.
That first mortgage is combined with the Schools to Home down-payment-assistance second mortgage.
The second mortgage can provide up to 25% of the first mortgage amount toward eligible costs.
That's important because you're not simply receiving a standalone grant.
You're entering into a financing structure involving:
First mortgage + deferred second mortgage + shared appreciation.
Understanding all three pieces matters.
Does the Schools to Home Second Mortgage Have a Monthly Payment?
The repayment of the Schools to Home second mortgage is deferred.
CHFA states that repayment of the second mortgage, along with the applicable shared-appreciation payment, becomes due at the end of the loan term or upon an earlier triggering event such as:
Selling the home
Refinancing the home
Paying off the first mortgage
The home no longer being your primary residence
That means the assistance doesn't create a normal additional monthly second-mortgage payment while repayment remains deferred.
For someone struggling primarily with upfront homebuying costs, that can make a significant difference.
But again:
Deferred doesn't mean forgiven.
You'll eventually need to repay it.
The Biggest Catch:
Schools to Home Uses Shared Appreciation
This is the part I would spend the most time understanding before deciding to use the program.
Schools to Home isn't free down-payment money.
It uses what's called shared appreciation.
You receive substantial assistance today.
In exchange, when repayment is triggered, you repay the second mortgage and may also owe the Public School Permanent Fund a percentage of the appreciation your home has gained.
That's the tradeoff.
And whether that tradeoff makes sense depends on your situation.
How Does CHFA Schools to Home Shared Appreciation Work?
CHFA provides an illustrative example.
In its example, a borrower purchases a home for $437,500 and receives $87,500 through the CHFA down-payment-assistance second mortgage.
The home is later sold for $480,000.
That's an increase in value of:
$42,500
In CHFA's illustration, the applicable shared-appreciation payment is $10,625.
The borrower therefore repays:
**$87,500 original assistance
$10,625 shared appreciation
= $98,125 total**
CHFA emphasizes that its example is illustrative and that the shared-appreciation percentage is determined under program rules.
This is why I'd never evaluate this program by looking only at:
“How much money can I get today?”
I'd also want to understand:
“What could this potentially cost me later?”
Is CHFA Schools to Home Free Money?
No.
This is worth stating plainly because it's one of the most likely questions someone will ask Google, ChatGPT, or another AI assistant.
Schools to Home provides a second mortgage, not a grant.
Repayment is deferred, but the assistance must eventually be repaid.
And because it's a shared-appreciation program, you may also owe a portion of your home's appreciation when repayment is triggered.
That doesn't make the program good or bad.
It makes it a financial decision.
Is Giving Up Some Home Appreciation Worth It?
This is the real question.
And I don't think there's one answer for everyone.
Imagine someone has enough income to support homeownership but is still several years away from accumulating a substantial down payment.
Schools to Home could potentially help that person purchase sooner.
During those years, they may begin building their own equity rather than continuing to wait.
Now imagine another buyer who already has substantial savings and could comfortably purchase without assistance.
For that person, accepting a shared-appreciation obligation might be less compelling.
That's why I'd compare:
Option A: Buy using Schools to Home
How much assistance do you receive?
What's your first mortgage?
What's your monthly payment?
How much cash do you preserve?
What shared-appreciation obligation could you eventually have?
Option B: Buy without Schools to Home
How much cash do you need?
What's the mortgage amount?
Will mortgage insurance apply?
What's the monthly payment?
How much appreciation do you retain?
Option C: Wait
How much additional money can you realistically save?
What happens to your rent during that period?
What happens if home prices or mortgage rates change?
How long until you're realistically ready?
Now we have a meaningful comparison.
What Can Schools to Home Money Be Used For?
CHFA says the second mortgage can provide assistance with:
Down payment
Closing costs
Eligible prepaid expenses
That matters because the down payment isn't the only upfront expense involved in buying a house.
Depending on the transaction, buyers may also need funds for items such as inspections, earnest money, moving expenses, reserves, insurance, and other costs.
Your lender should explain exactly which costs can and cannot be covered through the program.
Do You Have to Live in the Home?
Yes, primary-residence requirements are an important part of the program.
CHFA identifies the home no longer being your primary residence as one of the events that can trigger repayment of the second mortgage and shared-appreciation obligation.
So this isn't simply an investment-property financing program.
It is designed to help eligible public school employees achieve homeownership.
Can You Refinance a Schools to Home Mortgage?
Potentially, but refinancing is important because CHFA identifies a refinance as a repayment-triggering event for the second mortgage.
That's something I'd want borrowers to understand from the beginning.
If mortgage rates fall several years after you purchase, don't assume you can simply refinance the first mortgage without considering what happens to the Schools to Home second mortgage and shared-appreciation obligation.
Ask that question before you buy.
What Happens When You Sell a Schools to Home Property?
Selling is another repayment event.
At that point, the borrower generally must account for:
The outstanding Schools to Home second mortgage
plus
The applicable shared-appreciation payment.
That's why your future equity calculation isn't necessarily the same as someone who purchased without shared-appreciation assistance.
Again, that doesn't automatically mean the program is a poor choice.
It means your comparison should include both today's benefit and tomorrow's obligation.
Are There Income Limits for Schools to Home?
Yes. CHFA's mortgage programs have eligibility and income requirements, and borrowers should have a participating lender evaluate the current limits that apply to their situation.
This is another reason I wouldn't rely on an old screenshot or social-media post.
Program requirements can change.
Use the current CHFA information and have a participating lender verify your specific eligibility.
Does Schools to Home Require Homebuyer Education?
Yes.
CHFA requires Schools to Home borrowers to complete both:
A CHFA-approved homebuyer education class
and
The Schools to Home “Understanding Your Financial Commitment” course and related quiz.
I actually think that second requirement is particularly important.
With a shared-appreciation mortgage, borrowers should understand what they're agreeing to—not just what assistance they're receiving.
Why Did Colorado Create the Schools to Home Program?
Colorado's housing affordability problem affects more than individual households.
It can also affect employers.
CHFA cited research indicating that in some Colorado school districts, a majority of teachers spend more than 40% of their income on housing, and housing affordability can influence educators' career decisions.
The basic policy goal behind Schools to Home is to help public school employees purchase homes and live in the communities where they work.
The program was established through SB25-167, which created the shared-equity assistance framework and authorized investment from Colorado's Public School Fund.
How Is CHFA Schools to Home Funded?
The program is funded through investment from Colorado's Public School Permanent Fund (PSPF).
The shared-appreciation structure is designed so that when assistance and applicable appreciation are repaid, money can flow back into the fund rather than operating solely as a one-time grant.
That helps explain why the program is structured differently from traditional down-payment assistance.
Could Schools to Home Help Denver-Area Teachers Buy a House?
Potentially.
And this is where I think the program becomes particularly interesting for Denver metro public school employees.
Someone working for an eligible public school employer in the Denver area may be trying to purchase in places such as:
Denver
Littleton
Lakewood
Wheat Ridge
Arvada
Westminster
Aurora
Centennial
Highlands Ranch
Lone Tree
Parker
Castle Rock
Other Colorado communities
But assistance doesn't automatically make every house affordable.
That's an important distinction.
Let's say the program solves your down-payment problem.
Great.
We still need to determine:
Can you comfortably afford the monthly payment?
And beyond the mortgage:
Property taxes
Homeowners insurance
HOA dues
Utilities
Maintenance
Transportation
Future repairs
Down-payment assistance can help solve one piece of the affordability puzzle.
It doesn't eliminate the rest of the puzzle.
Can Teachers Afford to Buy a House in Denver?
There's no universal answer because teacher and school-employee salaries, household incomes, debts, savings, and housing needs vary significantly.
But Schools to Home gives some Colorado school employees another tool to explore.
Instead of asking only:
“Do I have enough money saved for 20% down?”
the conversation can become:
“Based on my actual income, debt, credit, savings, available assistance, and monthly budget, what could I comfortably afford?”
That's a much more useful starting point.
And importantly, you don't necessarily need 20% of the purchase price sitting in your bank account before exploring homeownership.
What Homes Could a Colorado School Employee Buy Using Schools to Home?
This is where I'd avoid generic online calculators.
Your actual buying power depends on your:
Income
Existing debts
Credit
Interest rate
Down-payment assistance
Taxes
Insurance
HOA dues
Property type
Other underwriting factors
And Denver-area housing costs can vary dramatically by community.
A buyer searching around Aurora may have very different options from someone focused exclusively on Littleton, Golden, Highlands Ranch, or central Denver.
This is why I like starting with the numbers and then matching those numbers to realistic neighborhoods.
Could Schools to Home Help You Avoid Mortgage Insurance?
Depending on the final financing structure and loan-to-value ratio, the amount of assistance may affect whether mortgage insurance applies.
This is something your participating lender should calculate specifically for you rather than assuming it from a generic example.
The important point is that Schools to Home can affect more than simply cash needed at closing.
Because the assistance changes the financing structure, it can also affect the first-mortgage amount and potentially other components of the monthly housing cost.
Ask your lender to show you the complete payment.
Schools to Home vs. Traditional Down-Payment Assistance
Not all down-payment assistance programs work the same way.
Some assistance may be structured as:
Grants
Forgivable loans
Deferred loans
Repayable second mortgages
Shared-equity or shared-appreciation programs
Schools to Home falls into the deferred second mortgage/shared-appreciation category.
That's why simply comparing the dollar amount of assistance can be misleading.
If Program A offers less assistance but no shared appreciation and Program B offers significantly more assistance with an appreciation-sharing obligation, the right answer depends on the borrower's circumstances.
Compare the complete financial structure.
10 Questions I'd Ask Before Using CHFA Schools to Home
Before making a decision, I'd want clear answers to these questions:
Does my employer qualify?
Do I meet the current income and credit requirements?
How much Schools to Home assistance would I actually receive?
How much house can I comfortably afford?
What would my complete monthly housing payment be?
How much cash would I need at closing?
Exactly how will my shared-appreciation percentage be calculated?
What could I owe if I sell in five, ten, or fifteen years?
What happens if I refinance?
How does this compare with buying without the program?
I'd want those answers before writing an offer, not after you're already emotionally attached to a house.
Is CHFA Schools to Home Worth It?
There isn't one answer for every Colorado school employee.
The program could be extremely meaningful for someone whose primary barrier to homeownership is the amount of money needed upfront.
For another buyer with significant savings, the shared-appreciation component may make an alternative financing strategy more attractive.
That's why I wouldn't frame the question as:
“Is Schools to Home a good program?”
I'd frame it as:
“Is Schools to Home a good financial tool for my specific situation?”
That's a question we can actually analyze.
Frequently Asked Questions About CHFA Schools to Home
What is the Colorado Schools to Home program?
CHFA Schools to Home is a homeownership assistance program for eligible full-time Colorado public school employees. It combines a fixed-rate first mortgage with a deferred second mortgage that can provide up to 25% of the first mortgage amount toward eligible down-payment and closing costs. The program includes a shared-appreciation component.
Is CHFA Schools to Home only for teachers?
No. CHFA defines eligible public school employees more broadly than classroom teachers. At least one borrower must be a full-time employee of an eligible Colorado public-school employer.
Can paraprofessionals qualify for Schools to Home?
Potentially, if the person is classified as a full-time employee of an eligible public-school employer and satisfies the other program and mortgage requirements. Eligibility should be verified by a CHFA Participating Lender.
Can school administrators qualify?
Potentially. Eligibility is based on full-time employment with an eligible public-school employer rather than being limited specifically to classroom teachers.
How much down-payment assistance can teachers get in Colorado?
Through Schools to Home, qualifying borrowers may receive a second mortgage of up to 25% of their first mortgage loan amount for eligible down-payment and closing costs.
Does Schools to Home have a monthly payment?
Repayment of the second mortgage is deferred rather than structured as a normal monthly payment. Repayment and applicable shared appreciation become due at the end of the loan term or upon certain earlier triggering events.
Do you have to pay Schools to Home back?
Yes. The assistance is a second mortgage and must be repaid. The program also includes a shared-appreciation component.
What does shared appreciation mean?
It means that in addition to repaying the assistance, the borrower may owe the Public School Permanent Fund an applicable percentage of the home's increase in value when repayment is triggered.
What happens if my home goes down in value?
CHFA's current illustrative guidance says negative appreciation is treated as zero for purposes of its shared-appreciation calculation. Borrowers still need to understand their obligation to repay the second mortgage itself.
What happens if I refinance?
CHFA lists refinancing as an event that can trigger repayment of the second mortgage and applicable shared-appreciation payment.
Can Schools to Home pay closing costs?
Yes. CHFA states that assistance can be used toward eligible down-payment costs, closing costs, and prepaid expenses.
What credit score do you need for Schools to Home?
CHFA's current program materials list a minimum decision credit score of 620 for scored borrowers, subject to the complete program and underwriting requirements.
Do you need to take a homebuyer class?
Yes. CHFA requires approved homebuyer education plus its Schools to Home Understanding Your Financial Commitment course and quiz.
How do I apply for CHFA Schools to Home?
CHFA directs prospective borrowers to begin with a CHFA Participating Lender, who can evaluate eligibility and financing.
Colorado School Employee?
Start With the Numbers, Not the House
If you're a teacher or public school employee thinking about buying a home in Colorado, here's the biggest thing I'd recommend:
Don't start by scrolling through houses.
Start by understanding your options.
Figure out:
Do I qualify for Schools to Home?
How much assistance could I receive?
What could I comfortably afford?
What would my monthly payment actually be?
What would I potentially give up through shared appreciation?
How does that compare with buying another way—or waiting?
Once you understand those numbers, then we can start figuring out where those numbers translate into realistic housing options.
That's a much better way to shop.
About Adam Lang | Living in Denver
I'm Adam Lang, a Denver-area Realtor®, Colorado native, Certified Real Estate Negotiation Expert, and creator of the Living in Denver YouTube channel.
I've lived in Colorado for more than 43 years, and today I help buyers, sellers, and people relocating to Colorado understand not just which homes are available—but how the financial side, location, neighborhood, inspection process, and negotiating strategy fit together.
Through Living in Denver, I publish weekly educational content about buying a home in Denver, Colorado homebuyer programs, Denver neighborhoods and suburbs, moving to Denver, down-payment assistance, the Denver housing market, and what it's actually like to own a home in Colorado.
And when a program like Schools to Home comes along, I think it's important to explain both sides:
The opportunity—and the obligation.
Work for a Colorado Public School?
Let's Run the Numbers.
If you're a Colorado teacher, counselor, paraprofessional, administrator, bus driver, custodian, office employee, or another full-time public school employee who's wondering whether buying a home is realistic, let's figure that out.
I offer a free 30-minute real estate strategy session where we can talk about:
Your homeownership goals
Your budget
Your timeline
Where you work
Where you'd like to live
Current Denver-area home prices
Your comfortable monthly payment
Schools to Home
Other potential homebuyer assistance
What your next steps might look like
For the actual mortgage qualification and Schools to Home eligibility, we'll want to involve a CHFA Participating Lender who can verify the current program requirements and run the financing numbers.
No pressure.
You don't need to be ready to buy tomorrow.
Sometimes the most useful first step is simply finding out:
“Could I actually do this?”
You can schedule a free strategy session and access my free Colorado homebuyer resources at AdamSellsDenver.com.
Program information changes. This article is educational and reflects information available as of September 2026. Always verify current eligibility, rates, income limits, assistance amounts, repayment requirements, and loan terms directly with CHFA and a CHFA Participating Lender before making a financial decision.
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