CHFA Drive It Home Quick Links
The CHFA Drive It Home - Construction Loansm provides a below-market interest rate to for-profit and nonprofit home builders to support new construction of for-sale homes sold at affordable price points for Colorado buyers earning no more than 140 percent of the statewide Area Median Income (AMI).
CHFA will accept applications through a competitive application process from September 30-October 31, 2025. $50 million in loan funds are available.
Eligible Use of Funds
- New construction costs
- Rehabilitation costs
- Project acquisition for conversion to affordable for-sale housing
- Loan proceeds will fund both new construction or adaptive reuse to affordable for-sale housing and permanent home mortgage
Financing Terms
CHFA Drive It Home - Construction Loansm
- Construction loan interest rate of 3.5%
- Construction loan of up to $285,000 per unit
- Note: CHFA reserves the right to limit the total loan size made available based on the program priorities.
- Program priorities include:
- Financial feasibility
- Dispersion of funds to at least three borrowers or project sponsors, including both nonprofit and for-profit borrowers
- A goal to construct a minimum of 175 units across the total program
- Geographic diversity of projects
- Affordability taking into consideration demonstrated community needs
- Speed of delivery of units/readiness to proceed - applicants should be prepared to close on the construction loan within six months of selection. Longer timeframes may be considered, dependent upon outside funding sources.
- Up to 90 percent loan-to-cost financing
- 1% loan origination fee
- Minimum of eight units
- Maximum of 60-month loan term
- Additional fees may apply (see program guidelines)
- Subordinate lien positions for construction lending will be considered, so long as any senior lender’s loan amount is more than the construction loan provided by CHFA. Any units financed using program funds must be deed restricted and are subject to the affordability requirements described below.
CHFA Drive It Homesm and CHFA Drive It Home Plussm - Mortgage Loan Programs
- The construction loan will be repaid by the origination of mortgage loans to income qualified buyers. The project applicant will have the ability to select from the available CHFA Drive It Homesm and CHFA Drive It Home Plussm Mortgage Loan program options.
- Contact CHFA’s Business Finance team for more information about mortgage loan program options.
Affordability Requirements
- All units financed by the CHFA Drive It Home - Construction Loansm will be required to provide a long-term affordability restriction to serve homeowners earning up to and no more than 140% of the AMI.
- All units will be income restricted by CHFA at construction loan closing until the construction loan is repaid.
- The project sponsor, construction loan borrower, or an approved third party must demonstrate the capacity to perform compliance monitoring and income qualification per the requirements of the restriction, either through the developer, local housing authority, municipality, or a qualified third-party provider.
- Housing constructed must remain affordable for a minimum of 20 years. CHFA notice and consent will be required for termination of any income restrictions prior to 20 years.
Application Process
CHFA will accept applications from September 30-October 31, 2025. Applicants can request an application form from CHFA’s Business Finance team by emailing businessfinance@chfainfo.com. Following the competitive application process, CHFA will contact applicants with the status of their application and communicate next steps.