Douglas County Schools To Home: Down Payment Help

CHFA Schools To Home is a Colorado down payment program for full-time public school employees. A Douglas County School District RE-1 employee, or staff at any Douglas County-authorized charter, institute charter, BOCES, or eligible preschool program, can pair a 30-year fixed first mortgage with a second mortgage worth up to 25% of that first mortgage amount, at $0 monthly payment, with a $1,000 minimum contribution from the buyer.

What Schools To Home Actually Is

The program came out of 2025 Colorado legislation directing the Colorado Housing and Finance Authority (CHFA) to build a down payment program for public school employees, funded through the Public School Permanent Fund. CHFA launched it in 2026. Home prices along the Front Range have outrun what a first-year paraprofessional, bus driver, nutrition services worker, or custodian can save toward a down payment; see the Colorado first-time buyer guide for how that gap compares to other down payment programs, since this one closes part of it.

It is not free money. It is a real second mortgage with a real repayment obligation, structured so the cost is calculable before you buy: a 30-year fixed first mortgage, a zero-percent second mortgage worth up to 25% of the first, and a shared appreciation payment due when you sell, refinance, pay off the first mortgage, or stop living in the home.

Who Qualifies in Douglas County

At least one borrower on the loan has to be a full-time employee of an eligible Colorado public preK-12 school employer. CHFA's definition covers any individual employed by the employer, not just classroom teachers: paraprofessionals, counselors, nurses, front office staff, custodial and maintenance workers, nutrition services staff, bus drivers, coaches, and administrative staff all qualify if their employer is on the eligible list and they work full time.

Eligible Douglas County employers include Douglas County School District RE-1 and its more than 60 schools, Douglas County-authorized charter and institute charter schools, option and magnet programs run as public schools, innovation zone schools, BOCES, and publicly funded preschool programs. Confirm any employer through the Colorado Department of Education's SchoolView site, where the School Type column has to say "Public." Private and parochial school staff are not eligible.

If Your Spouse Doesn't Work for a School

Only one borrower on the loan has to be the full-time public school employee. The other borrower can work in any field. This matters for two groups: a household where one spouse works for the district and the other earns more, since the school employee opens up the program and the combined income qualifies the loan up to the cap; and co-buyers who are not married, such as two Douglas County staff members or a district employee buying with a sibling, as long as everyone on title is also on the loan and lives in the home. Non-occupying co-signers are not permitted.

How Much Assistance Douglas County Buyers Actually Get

The assistance equals 25% of your first mortgage amount, not 25% of the purchase price, and the program allows up to 97% loan-to-value on the first mortgage and 105% combined loan-to-value. On a $700,000 Castle Rock purchase: an 80% first mortgage of $560,000 pairs with a $140,000 second for a $0 down payment with no PMI, or an 84% first mortgage of $588,000 pairs with a $147,000 second that covers the down payment plus roughly $35,000 toward closing costs, with PMI required. A CHFA participating lender can price both structures side by side.

The first mortgage caps at the lower of $832,750 or the applicable Fannie Mae limit. Higher-priced pockets of Douglas County, including parts of Castle Rock and Highlands Ranch, push closer to that ceiling than most Colorado counties, so confirm the number early with your lender. There is no cap on the purchase price itself, only on the loan amount, which means the program does not push school employees toward the least expensive corners of the metro.

The Income Limit

The income limit is $178,920 statewide, the same number in every county regardless of household size, based on the qualifying income your lender uses to credit-qualify the loan. A district employee paired with a higher-earning co-borrower can still fit under that ceiling at most Douglas County price points.

Your required contribution and your assistance amount are two different numbers. The minimum contribution is $1,000, and it can come as a gift; CHFA can bring up to 25% of your first mortgage on top of it. On the $700,000 Castle Rock example, that is $1,000 out of pocket against $140,000 of down payment help.

Shared Appreciation, Explained in Plain Numbers

CHFA's shared appreciation rate is your assistance amount divided by your original purchase price, locked at closing. A $140,000 second on a $700,000 home locks a 20% rate; a $147,000 second locks 21%. Appreciation is measured as your sale price minus your original purchase price, multiplied by that locked rate. Improvements you fund yourself, such as a finished basement, count toward the appreciation you share, so factor that in before a major remodel. If the home loses value, you still repay the assistance amount but owe nothing extra; there is no scenario where the shared appreciation payment goes negative.

Repayment comes due at four triggers: you sell, you refinance, you pay off the first mortgage, or the property stops being your primary residence. That last trigger rules out using Schools To Home to build a rental property.

A Worked Example at a $700,000 Castle Rock Home

A full-time Douglas County RE-1 employee buys in Castle Rock for $700,000 using the zero-down structure: $560,000 first mortgage, $140,000 second, $0 down payment, $1,000 minimum contribution, 20% locked shared appreciation rate. Seven years later, the home sells for $910,000, a roughly 3.8% annual appreciation rate in line with what Colorado market reports have shown across Douglas County over similar stretches. The $210,000 gain owes 20% in shared appreciation, or $42,000. Add the $140,000 assistance repayment and the total owed to CHFA is $182,000. After paying off the remaining ~$490,000 first mortgage balance, the seller nets roughly $238,000 before selling costs, on a purchase that required $1,000 down.

When Schools To Home Is the Wrong Move

• You plan to move within three years. A short hold does not build enough equity to comfortably absorb the payoff plus transaction costs.
• You already have 15% to 20% saved in cash. A straight conventional loan with no shared appreciation costs less when the cash is already sitting in your account.
• You want a future rental property. The primary-residence repayment trigger rules this out.
• You are planning a large value-add renovation. You share appreciation on value you paid to create yourself.
• You are already at the top of your budget. A zero-down purchase leaves no cushion for a new roof, an HVAC failure, or a hail claim deductible, all of which are routine costs on a larger Douglas County home.
• Your credit score is under 620. You are not eligible yet; a focused six-month credit cleanup is worth doing before you apply.

The Requirement Checklist

• At least one borrower classified full time by an eligible Colorado preK-12 public school employer, verified through CDE SchoolView.
• Minimum mid credit score of 620, or the loan type's requirement if higher.
• Maximum debt-to-income of 50% for FICO 620-659, or 55% for FICO 660 and above.
• Income at or below $178,920 statewide.
• Two years of tax transcripts through IRS Form 4506-C.
• Underwriting through Fannie Mae's Desktop Underwriter only.
• A $1,000 minimum borrower contribution, which can come as a gift.
• A CHFA-approved homebuyer education course and CHFA's financial commitment course, completed by every borrower.

Once you have a pre-approval letter from a CHFA participating lender, review the Colorado mortgage pre-approval guide and the Colorado home financing guide for how a second-mortgage structure fits alongside the rest of your closing paperwork.

Where to go next

• Explore Castle Rock homes
• Explore Highlands Ranch homes
• First-time home buyer guide for Colorado
• Colorado mortgage pre-approval guide
• Colorado home financing guide
• Search every home for sale in Colorado

Talk to the Kenna Real Estate Group

If you work for a Douglas County school and want both loan structures priced side by side against your target price range, the Kenna Real Estate Group can connect you with a CHFA participating lender and run the numbers with you. Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. Or search every home for sale in Colorado to see what fits your budget today.