Colorado Public School Employees Can Get Up to 25% Down Payment Assistance: How the 'Schools to Home' Program Works

At a Glance: The CHFA "Schools to Home" Program

Established under Colorado Senate Bill 25-167 in partnership with the state's Public School Permanent Fund, the Schools to Home Program provides eligible full-time pre-K through 12th-grade public school employees with up to 25% of their first mortgage loan amount to use toward down payment or closing costs.

Assistance AmountUp to 25% of Loan

Income Cap$178,920 / year

First-Time Buyer?Not Required

Repayment TriggerSale or Refinance

For many Colorado teachers, paraprofessionals, counselors, bus drivers, cafeteria team members, and administrative staff, saving $50,000 to $100,000 in cash for a down payment while managing everyday expenses in the Denver metro has felt nearly impossible.

According to the Colorado Housing and Finance Authority (CHFA), that hurdle is precisely why the state launched the Schools to Home Program with $10 million in initial state backing. The goal: assist approximately 1,200 public school employees in putting down roots in the communities where they teach and work.

Early Program Momentum: Where the Funding Is Going

Since launching in July, the program has already helped dozens of educators purchase homes across Colorado. CHFA business development manager Paige Omohundro shared that roughly 42% of closed loans have supported borrowers right here in the Denver Metro area (including Arapahoe, Jefferson, Douglas, and Denver counties), with the remaining 58% assisting public school staff across Northern Colorado, the Western Slope, and Southern Colorado.

Because this program provides a substantial percentage rather than a fixed nominal grant, it significantly reduces the borrower's monthly principal-and-interest burden and often eliminates or dramatically cuts private mortgage insurance (PMI).

Who Qualifies for Schools to Home Assistance?

Unlike many traditional down payment programs that come with rigid narrow definitions, the Schools to Home initiative is broadly accessible across school district roles:

Eligibility Factor	Program Requirement	Notes for Littleton & South Metro Staff
Employment	Full-time public school employee (Pre-K through 12th grade)	Includes Littleton Public Schools (LPS), Jeffco Public Schools, Douglas County School District (DCSD), and Cherry Creek School District. Teachers, paras, custodial, transport, and administrative staff qualify.
Income Limit	Household income of $178,920 or less per year	Generous cap that accommodates dual-earner households and educators with supplemental income.
Homebuyer Status	First-time homebuyer is NOT required	You can have owned a home previously. The purchased home must simply be your primary residence.
Maximum Assistance	Up to 25% of the primary mortgage amount	Can be applied to the down payment, closing costs, or reducing the loan balance.
Education Requirement	CHFA Homebuyer Education + "Understanding Your Financial Commitment"	The short supplemental class ensures borrowers understand the shared appreciation mechanics thoroughly before closing.

The Mechanics: How Does Shared Appreciation Work?

The program is not a free grant that gets forgiven after three years. It is structured as a shared equity / shared appreciation loan. Here is exactly what that means:

No Monthly Payments on the Assistance: While you live in the home, you make no monthly payments toward the down payment portion. Your monthly mortgage payment covers only your first mortgage.
Repayment on Sale or Refinance: Whenever you choose to sell the property or refinance your primary mortgage, you repay the original dollar amount of the down payment assistance borrowed.
A Share of Future Equity: In addition to repaying the principal amount, you pay back a proportionate percentage of any price appreciation the home experienced over your ownership period.
Self-Sustaining Endowment: All returned principal and shared appreciation flow directly back into Colorado's Public School Permanent Fund, refilling the program so future generations of teachers and school staff can purchase homes.

Example Scenario: How the Math Looks

Suppose an educator purchases a home for $500,000 using a 3.5% borrower down payment plus a 20% CHFA Schools to Home second note ($100,000). The first mortgage is only $382,500, keeping monthly payments well within budget without burdensome PMI.

Seven years later, if the educator sells the home for $620,000 ($120,000 in gross appreciation), they repay the original $100,000 assistance plus the agreed-upon share of the $120,000 gain. The educator pockets their substantial remaining equity, principal paydown on the first loan, and moves on to their next home with real wealth created.

Comparing Schools to Home with Other Colorado Assistance Options

The Schools to Home Program is powerful, but it isn't the only down payment resource available to educators in the South Denver metro. Depending on whether you plan to stay in the home long-term or sell in 3–5 years, another program may be a superior financial match:

Statewide Shared Equity

CHFA Schools to Home

Provides up to 25% down. Ideal if you need to keep monthly payments as low as possible and qualify on a modest salary in high-priced submarkets.

Repay principal + share of gain

Forgivable Option

CHFA DPA Grant / 2nd Loan

Provides up to 3% to 4% of the loan amount. Smaller assistance, but does not require giving up a percentage of your home's future price appreciation.

Grant or fixed silent second

County / Municipal Programs

Arapahoe & Douglas DPA

County-level down payment programs (e.g. Arapahoe County Community Development or metro HUD programs) offering fixed forgivable assistance for qualifying income brackets.

Subject to county funding cycles

Explore our complete breakdown of all state and county assistance resources on our Colorado Down Payment Assistance Guide, or explore our step-by-step First-Time Homebuyer in Littleton Guide.

Step-by-Step: How to Apply and Get Started

Verify Full-Time Status: Confirm your employment with your school district or accredited public charter school in Colorado. Keep a recent pay stub or district verification letter handy.
Work with a CHFA-Participating Lender: The Schools to Home program requires working through an authorized CHFA Participating Lender who has completed the training to originate this specific loan structure.
Complete the Two Required Courses: Complete CHFA's standard Homebuyer Education course plus the short “Understanding Your Financial Commitment” module. Both can be completed online.
Determine Your Price Point and Equity Strategy: Work with an experienced local real estate advisor who understands HOA dues, metro district taxes, and neighborhood pricing dynamics in Littleton, Highlands Ranch, Ken Caryl, or Columbine so your total monthly obligation remains comfortable.
Submit Strong Offers: Because Schools to Home funds are pre-allocated through CHFA, your offer carries conventional or government financing strength without the delays often associated with smaller municipal grant queues.

Frequently Asked Questions: Schools to Home

Do bus drivers, custodians, and front-office staff qualify?

Yes. The program is open to all full-time public school employees (pre-K through 12th grade), not just certified classroom teachers. Administrative staff, transportation specialists, facility crew members, and nutrition teams are equally eligible.

Can I assume an existing low-rate mortgage using this program?

CHFA Schools to Home down payment assistance is structured specifically alongside an eligible CHFA primary mortgage loan, rather than as secondary financing on an FHA/VA mortgage assumption. If you are interested in acquiring a home through an existing 2.5% to 3.8% assumable loan, see our dedicated Littleton Assumable Mortgage Guide for equity-gap financing strategies.

Can I use this program to buy a condo or townhome in Littleton?

Yes, provided the condo or townhome community meets CHFA and loan program property eligibility guidelines. Single-family detached homes, townhomes, and approved condominium units all qualify as primary residences. Keep in mind that conventional financing on condos and townhomes now requires a condo project review that can add one to three weeks to your timeline — start the review early so it doesn't delay your CHFA closing.

South Denver Housing Guidance

Have Questions About Buying a Home as an Educator?

Navigating down payment programs, metro district mill levies, and Littleton submarket values is simpler when you have unbiased local guidance. Have a specific question about program eligibility, local lender connections, or neighborhood inventory?

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