CHFA Refinance Options

Restructure: If you're feeling stuck with your CHFA first-time homebuyer loan, you can restructure your second mortgage or grant into a standard FHA or Conventional loan, often with a lower rate or payment.

Streamline Refinance: *Coming Soon* You can streamline refinance your CHFA loan to lower the interest rate on your 1st mortgage without combining it with your 2nd mortgage, leaving the 2nd untouched.

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Learn More CHFA REFI

Stuck in Your CHFA Loan? (2nd mortgage or grant)

Refinancing a CHFA loan offers Colorado homeowners an opportunity to reduce their interest rates, lower monthly payments, or switch loan terms. Whether you are seeking to take advantage of lower market rates, bundle your 1st and 2nd mortgage together, access equity through a cash-out refinance, or adjust your mortgage terms, refinancing your CHFA loan could help you achieve greater financial flexibility while preserving the benefits of a CHFA program.

Eligibility: Not all CHFA loans are automatically eligible for refinancing. Homeowners need to meet certain requirements, such as credit score and equity in the home, similar to traditional loans.
Interest Rate Reduction: Refinancing can allow borrowers to secure a lower interest rate if market conditions have improved since their original CHFA loan, potentially lowering monthly payments.
Changing Loan Terms: Borrowers can refinance to a shorter or longer loan term, depending on their financial strategy. Shorter terms may help you pay off your loan faster, while longer terms can reduce monthly payments.
Cash-Out Refinance Option: If you've built up equity in your home, you might be able to access that equity through a cash-out refinance, which can be used for home improvements, debt consolidation, or other financial needs.
Preserving CHFA Benefits: Some homeowners may be concerned about losing the benefits tied to their original CHFA loan, such as down payment assistance. It's important to review the terms to ensure refinancing won’t impact these advantages.
Closing Costs: Just like with your original loan, refinancing comes with closing costs, which may include appraisals, fees, and other related expenses. Make sure the long-term savings outweigh these costs.
Streamlined Refinance Programs: CHFA offers streamlined refinance programs for some borrowers, potentially simplifying the process with fewer requirements or documentation.
Mortgage Insurance: If you refinance with less than 20% equity, you may still need mortgage insurance. However, if your equity has increased, refinancing could help eliminate the need for it.