District 49 Schools To Home: Falcon & Peyton DPA

Full-time District 49 employees can buy a home in Falcon, Peyton, or eastern Colorado Springs with close to nothing down using CHFA Schools To Home — a 30-year fixed first mortgage paired with a deferred second mortgage worth up to 25% of that first mortgage, with no monthly payment on the second.

What Is the CHFA Schools To Home Program?

Schools To Home was created by 2025 Colorado legislation and is funded through the Public School Permanent Fund, administered by the Colorado Housing and Finance Authority (CHFA). District 49 — also known as Falcon School District 49 — serves a large and growing stretch of El Paso County. For a paraprofessional, bus driver, custodian, or first-year teacher, saving a traditional down payment while renting in a fast-growing market can take years. Schools To Home is built to close that gap.

Which District 49 Employers Count as Eligible?

Eligible employers include District 49 district-run campuses, D49-authorized charter and institute charter programs, eligible BOCES serving El Paso County public schools, and innovation zone campuses. CHFA verifies each employer through the Colorado Department of Education's SchoolView database, and the employer has to carry a public designation there. Private and religious-school employees are not eligible.

Do I Have to Work in a Classroom to Qualify?

• Classroom and special education teachers
• Paraprofessionals and aides
• Counselors, psychologists, and nurses
• Front office and registrar staff
• Custodial and maintenance staff
• Nutrition services staff
• Bus drivers, mechanics, and dispatch
• Coaches and athletic staff
• Administrative, IT, HR, finance, and security staff

Job title does not matter. Full-time status with an eligible D49 employer is what CHFA checks.

How Does District 49's Military and Fort Carson-Area Workforce Fit the Program?

District 49's service area sits close to Peterson Space Force Base and Schriever Space Force Base, and within commuting distance of Fort Carson, which creates real overlap between the D49 employee population and military households. Only one borrower on the loan has to be the eligible full-time D49 employee — the other can hold VA loan eligibility from active duty or veteran status. Combining a VA-eligible first mortgage with the CHFA second mortgage is possible in some cases, but the specifics need confirming directly with a participating lender, since not every lender structures that pairing the same way. A household expecting a PCS move within a few years should weigh that timing carefully: a short ownership period does not leave enough time to build equity before the CHFA obligation comes due.

How Much Down Payment Assistance Can a District 49 Employee Get?

The assistance amount is up to 25% of the first mortgage, not the purchase price. Two loan limits shape the structure: a maximum 97% loan-to-value on the first mortgage, and a maximum 105% combined loan-to-value once the second mortgage is layered in.

A CHFA-participating lender should price both structures side by side. The PMI premium against the extra assistance runs differently depending on credit score and how long the buyer plans to stay in the home.

Is Schools To Home Free Money?

No. It is a second mortgage with a real repayment obligation, not a grant. What it changes is timing: it turns years of saving into a purchase this year, at a cost calculated up front and compared against the alternative.

What Is the Income Limit for El Paso County Applicants?

$178,920, statewide, regardless of county or household size. The income counted is the qualifying income the lender uses to credit-approve the loan, not a separate household calculation.

Is There a Maximum Purchase Price in the District 49 Area?

No separate Schools To Home purchase-price limit applies. There is still a maximum first-mortgage amount — the lesser of $832,750 or the applicable Fannie Mae conforming limit plus financed mortgage insurance — but that is a loan-amount ceiling, not a cap on the home's price. A qualifying D49 employee can compare new-construction Falcon against established eastern Colorado Springs neighborhoods rather than assuming one option is out of reach.

What Is the Maximum Loan Amount?

The first mortgage is capped at the lesser of $832,750 or the applicable Fannie Mae conforming limit plus financed mortgage insurance. In El Paso County, that ceiling sits well above what most D49 households will be borrowing.

What Is Shared Appreciation, and How Is It Calculated for District 49 Buyers?

CHFA divides the assistance amount by the original purchase price to lock in a fixed shared appreciation percentage at closing. Appreciation itself is measured as sale price minus original purchase price — not down payment, not renovation spend, not agent commission.

Worked example: a full-time District 49 employee buys a home in Falcon for $475,000 using Structure A: $380,000 first mortgage, $95,000 in assistance, a locked 20% shared appreciation rate, and a minimum $1,000 contribution at closing. Seven years later, at roughly 3.8% annual appreciation — a reasonable Front Range assumption — the home sells for $605,000. Appreciation is $130,000; the shared appreciation payment is 20% of that, or $26,000; the total owed to CHFA is $121,000 ($95,000 assistance plus $26,000 appreciation share), against a remaining first-mortgage balance near $330,000.

What If My Home Loses Value After I Buy It?

Negative appreciation is treated as zero. The buyer still owes the assistance back in full, but never owes a share of a decline.

When Does the Second Mortgage Come Due?

Four triggers: selling, refinancing the first mortgage, paying it off, or the home no longer being the owner's primary residence. Move out and rent the house, and the whole balance accelerates — this program is not built for a rental portfolio, and it is not designed for a household planning to convert the home into a rental during a future PCS.

Can I Refinance Later to Get a Better Rate?

Yes, but a refinance triggers repayment of both the assistance and the shared appreciation amount. Have a lender model the future CHFA payoff against the refinance before committing to a rate lock.

What Credit Score and Paperwork Does CHFA Require?

• Minimum middle credit score: 620
• Maximum DTI: 50% for scores of 620-659, 55% for 660 and above
• Statewide income limit: $178,920, regardless of county or household size
• Automated underwriting through Fannie Mae DU only
• CHFA-approved homebuyer education course, every borrower, valid 12 months
• Full appraisal required — a Property Inspection Waiver is not permitted

What If My Spouse Doesn't Work for District 49?

That is not disqualifying. Only one borrower on the loan has to be the eligible school employee. A spouse or partner in any other field — including active-duty military, common in the Fort Carson and Space Force base area — can still be a co-borrower, which lets many households qualify on combined income.

What Kind of Homes Qualify, Including ADUs?

• Single-family homes, attached or detached
• Townhomes and PUDs
• Condominiums
• Modular homes
• Manufactured homes on a permanent foundation, subject to Fannie Mae guidelines
• Homes with an existing ADU, subject to Fannie Mae requirements

A typical duplex does not qualify — the program is structured around one-unit, owner-occupied properties. The home must be owner-occupied as a primary residence, and a full appraisal is required.

Where Are District 49 Employees Actually Buying Homes?

• Falcon — the district's namesake community and one of the fastest-growing areas in El Paso County, with substantial new-construction inventory alongside established homes.
• Peyton — a more rural, lower-density option east of Falcon, with larger lots; well and septic systems and winter road access deserve extra attention here.
• Eastern Colorado Springs — the portion of the district overlapping the city, with access to the Powers Boulevard corridor and shorter drive times to Peterson Space Force Base.

Browse current inventory at Explore Colorado Springs and Explore Monument, or search every county at once at homes for sale in Colorado.

What Makes Buying in Falcon and Peyton Different From Colorado Springs Proper?

Falcon's newer master-planned communities frequently sit inside metro districts that finance roads, parks, and infrastructure, which can push property taxes above what an older Colorado Springs neighborhood carries; many of those subdivisions also carry HOA dues, so price the full monthly payment rather than just principal and interest. Some Peyton-area properties rely on well and septic systems instead of municipal utilities, so have those inspected separately and budget for maintenance and eventual replacement. Because Schools To Home requires a full appraisal with no waiver option, build the offer timeline around that reality in a competitive Falcon or eastern Colorado Springs market.

When Is Schools To Home the Wrong Move for a District 49 Employee?

• Moving within three years, including an anticipated PCS. A short hold does not build enough equity to comfortably absorb the payoff, and transaction costs add up regardless.
• Already holding 15% to 20% saved. A straight conventional loan with no shared appreciation is the cheaper path in most of those cases.
• Planning to keep the home as a rental. The primary-residence trigger ends that plan the moment the home stops being owner-occupied.
• Planning a major value-add renovation. The buyer shares appreciation on value created with their own money and labor.
• Buying at the top of the budget. Zero down means zero cushion for a well-pump repair or a hail-claim deductible landing in the same year.
• Credit under 620. Not yet eligible; a focused six-month credit cleanup resolves this for most borrowers.

What Is the Step-by-Step Process to Use Schools To Home?

1. Confirm the employer carries a public designation in the CDE SchoolView database.
2. Get pre-approved with a CHFA-participating lender and start the required homebuyer education course early.
3. Compare Structure A and Structure B, and compare both against a straight conventional loan — and against VA financing if a co-borrower has eligibility.
4. Search Falcon, Peyton, and eastern Colorado Springs inventory, and account for the required full appraisal in the offer timeline.
5. Close with the minimum borrower contribution, near $1,000 for most files.

Financing questions on Schools To Home, and on El Paso County mortgages of any kind, are a good fit for Mike Oswald at Rate (NMLS 261003, Equal Housing Lender). You are free to use any lender. Start at the Colorado home financing guide or check readiness first at Kenna Credit Care mortgage readiness. Ask for the printable Schools To Home closing-cost checklist in the form below and we email it the same day.

Where to go next

• Search every home for sale in Colorado
• CHFA Schools To Home Colorado: every district guide
• Academy D20 Schools To Home: down payment help
• Fountain-Fort Carson Schools To Home: DPA help
• Explore Colorado Springs
• First-time home buyer guide for Colorado

Talk to the Kenna Real Estate Group

The Kenna Real Estate Group works with District 49 staff on Schools To Home purchases across Falcon, Peyton, and eastern Colorado Springs — comparing loan structures, weighing VA financing for military-connected households, and timing offers around the required appraisal. Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. Or start now and search every home for sale in Colorado.