CHFA Refinance Options

Restructure Refinance

If you’re feeling stuck with your CHFA first-time homebuyer loan, a restructure refinance may be the right solution. With this option, we can combine your CHFA second mortgage or grant into a standard FHA or Conventional loan. This often results in:

A lower interest rate compared to your current loan.
One simplified payment instead of two separate mortgages.
More flexibility in your long-term financial planning.

Streamline Refinance

If your goal is simply to lower the interest rate on your first mortgage—without touching your CHFA second mortgage—a streamline refinance could be the ideal choice.

Key Benefits of a Streamline Refinance:

No appraisal required – your current home value isn’t a factor.
No income verification – although we do collect a recent pay stub to confirm employment.
Minimal documentation – we only need:
- Your most recent mortgage statement
- One current pay stub
- A copy of your driver’s license
- Your homeowner’s insurance agent’s contact information
No lender fees – helping you save more at closing.

Eligibility Requirements:

You must have made your last 12 mortgage payments on time.
You must still be living in the property as your primary residence.

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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.
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.