Colorado quietly launched the most generous down payment program in the state in July 2026, and most of the people it was built for still have not heard of it. Schools to Home will lend a public school employee up to 25 percent of their first mortgage for the down payment and closing costs, with no monthly payment. CHFA's standard assistance caps out at $25,000. On a $400,000 loan, this one goes to $100,000.
It is not a grant, and the way you pay it back is unusual enough that it deserves a straight explanation before anyone signs anything.
What it is
Schools to Home came out of Senate Bill 25-167 in the 2025 legislative session. Rather than appropriating general fund money, the legislature authorized CHFA to invest a slice of the Public School Permanent Fund — the state's education endowment — into mortgages for the people who work in those schools. The fund puts up the capital and gets a return through shared appreciation instead of interest.
Mechanically, you get two loans:
- A CHFA fixed-rate first mortgage, underwritten like any other CHFA loan.
- A deferred second mortgage of up to 25% of that first loan, covering down payment and closing costs. No monthly payment. No set maturity.
Who qualifies
- Full-time public school employees, pre-K through 12th grade.
- Income at or below $178,920. That is high by assistance-program standards — a two-income household where both people work for a district will often still fit.
- No first-time buyer requirement. This is the part people miss. Most Colorado assistance is locked to first-time buyers or a three-year lookback. This is not.
"Public school employee" is broader than "teacher." The program is written around employment, not around holding a teaching license, which reaches paraprofessionals, counselors, bus drivers, food service and custodial staff, and district administrative employees. If you work for a district, ask — do not assume you are outside it.
Tell me your district and title and I will get you a straight answer from a lender who has actually closed these — not a maybe.
Check my eligibility →The shared appreciation trade-off
This is the part to understand properly, because it is where the program stops looking like free money.
A normal second mortgage charges interest. Schools to Home does not. Instead, when the loan comes due, a portion of your home's appreciation goes back to the Public School Permanent Fund. You repay what you borrowed plus a share of what the house gained.
Which direction that cuts depends entirely on the market:
- If the home appreciates strongly, the shared appreciation payment can exceed what interest on a conventional second would have cost you. You bought the house with money you did not have, and you paid for it out of the gain.
- If the home appreciates slowly or not at all, you owe less than an interest-bearing loan would have charged. The fund absorbs part of that.
CHFA does not publish a single public split figure, and I am not going to invent one for you. Get the exact appreciation share in writing from your lender before you commit. It is the most important number in the program and the one least likely to be volunteered.
None of this makes it a bad deal. For a school employee sitting on the sidelines because they cannot assemble $40,000 in cash, trading a slice of future appreciation for getting into a house five years earlier is often plainly worth it — five years of principal paydown and appreciation on the other 75% is not nothing. It is a trade, and you should make it knowingly.
When you pay it back
The second comes due on any of four events:
- You sell the home.
- You refinance.
- You pay off the first mortgage.
- The home stops being your primary residence — including if you move out and rent it.
That last one matters more than it looks. A school employee who takes a job in another district, keeps the house as a rental, and moves has triggered repayment. Plan around it.
How it compares to the rest of Colorado assistance
| Program | Max assistance | First-time buyer required? |
|---|---|---|
| Schools to Home | 25% of first mortgage | No |
| CHFA DPA Grant | Lesser of $25,000 or 3% | Varies by first mortgage |
| CHFA DPA Second Mortgage | Lesser of $25,000 or 4% | Varies by first mortgage |
| metroDPA | % of loan amount | No |
| First-Generation Program | Up to $25,000 | First-generation rules apply |
For everything else on this list and how the layers interact, the full Colorado down payment assistance map covers it, and the CHFA loans guide explains the first-mortgage side.
The money is finite
The legislature put $10 million into it, sized to serve roughly 1,200 buyers. As of the most recent reporting, 87 public school employees had used it, with about 42% of loans going to Denver metro borrowers.
That is early, and it means there is room right now. It also means this is not a permanent fixture you can plan around for 2028 — it runs until the appropriation is committed. If you are a school employee who has been waiting for the right moment, the funding availability is itself an argument against waiting.
Related guides
All Colorado DPA programs CHFA loans explained First-time buyer programs How much down payment you need Closing costs in ColoradoHow to actually start
Applications go through a CHFA Participating Lender — not through CHFA directly, and not through me. The lender qualifies you for the CHFA first mortgage and layers the Schools to Home second on top of it.
Two things worth doing before you call one:
- Confirm your employment status in writing. Full-time, pre-K–12, public district. Get your HR letter early; it is the document that stalls files.
- Ask the lender how many of these they have closed. The program is two months old. Plenty of loan officers have heard of it and have never done one, and a first-timer learning on your contract is how closing dates slip.
Once you are approved, the offer side has its own problem — assistance-backed offers still carry a reputation with some listing agents for being slow. That reputation is mostly out of date and it still costs buyers houses. Fixing it takes a pre-approval from a lender who closes these, honest timelines written into the contract, and a call to the listing agent before the offer lands. That last one is my job, and it is the one nobody makes.
Frequently asked questions
What is the CHFA Schools to Home program?
Schools to Home is a Colorado program that pairs a CHFA fixed-rate first mortgage with a deferred second mortgage worth up to 25 percent of the first loan, used for down payment and closing costs. It was created by Senate Bill 25-167 in the 2025 legislative session, is funded by the state's Public School Permanent Fund, and launched in July 2026. The second mortgage carries no monthly payment and is structured as shared appreciation, meaning a portion of your home's appreciation goes back to the fund when the loan is repaid.
Who qualifies for Schools to Home in Colorado?
Full-time public school employees working in pre-kindergarten through 12th grade, earning $178,920 a year or less. It is not limited to classroom teachers -- the program is written around public school employment, which reaches paraprofessionals, counselors, bus drivers, food service staff, custodians, and administrative employees. Confirm your specific role with a CHFA Participating Lender.
Do you have to be a first-time home buyer for Schools to Home?
No. Schools to Home does not require first-time buyer status, which makes it unusual among Colorado assistance programs and genuinely useful for a school employee who owned before, sold, and is buying again.
How much assistance does Schools to Home provide?
Up to 25 percent of the first mortgage amount, delivered as a deferred second mortgage. On a $400,000 first mortgage that is up to $100,000 toward down payment and closing costs -- far above the $25,000 cap on CHFA's standard grant and second mortgage assistance.
What is shared appreciation, and what does it cost you?
Shared appreciation means you repay more than you borrowed if the home gains value. Instead of charging interest, the program takes a portion of your home's appreciation when the loan comes due. If the home rises in value substantially, the amount repaid can exceed a conventional second mortgage's interest cost. If it does not appreciate, you owe less. Ask your lender for the exact split in writing before you sign -- it is the single most important number in this program.
When do you repay Schools to Home assistance?
On sale of the home, refinance, payoff of the first mortgage, or when the home stops being your primary residence. There is no monthly payment in the meantime, and no set maturity date tied to a term of years.
How do you apply for Schools to Home?
Through a CHFA Participating Lender, not through CHFA directly and not through a real estate broker. The lender qualifies you for the CHFA first mortgage and layers the Schools to Home second on top. Funding is finite -- $10 million was appropriated to serve roughly 1,200 buyers -- so timing matters.