Colorado First-Time Home Buyer Programs: CHFA Grants, Loans, and How to Qualify in 2026
Buying a first home in Colorado means clearing two hurdles at once: a purchase price well above the national average, and a down payment that can run into the tens of thousands of dollars. The good news is that the Colorado Housing and Finance Authority (CHFA) pairs affordable first mortgages with real down payment help, and several cities and counties add their own money on top. This guide walks through what is actually available in 2026, the exact dollar limits, and how to qualify.
Colorado’s median home sale price was about $563,000 in May 2026 (Redfin), up slightly year over year. On a home at that price, a 3.5% FHA down payment is roughly $19,700, and a 3% conventional down payment is about $16,900 — before closing costs. That gap is exactly what the programs below are designed to close.
Colorado Housing and Finance Authority (CHFA) Programs
CHFA is the state’s primary source of first-time buyer help. It does not lend to you directly; you apply through a CHFA-participating lender, complete a homebuyer education course, and CHFA supplies the first mortgage plus optional down payment assistance.
CHFA first mortgage products
- CHFA FirstStep — an FHA-insured loan aimed at first-time buyers, qualified veterans, and buyers in designated targeted areas. This is the most common entry point.
- CHFA Preferred — a conventional loan option, useful for buyers who can cancel private mortgage insurance once they build equity.
- CHFA SmartStep — a first mortgage for buyers who do not need to meet first-time buyer status, with both FHA and conventional versions.
- CHFA FirstGeneration — a program for first-generation buyers that makes the full down payment assistance amount available regardless of loan size.
All CHFA first mortgages carry a 30-year term, require a homebuyer education course, and require you to occupy the home as your primary residence (CHFA).
CHFA down payment assistance: grant vs. second mortgage
CHFA offers two forms of down payment assistance, and you choose one — you cannot take both with the same first mortgage.
- DPA Grant — the lesser of $25,000 or 3% of your first mortgage amount. It is a true grant and is never repaid. On a $400,000 first mortgage, 3% is $12,000; the $25,000 ceiling only comes into play on larger loans.
- DPA Second Mortgage — the lesser of $25,000 or 4% of your first mortgage amount. This is a deferred second loan. There are no monthly payments, and repayment is due only when you sell, refinance, pay off the first mortgage, or stop using the home as your primary residence (CHFA).
For the FirstGeneration and HomeAccess programs, CHFA makes the full $25,000 available regardless of first mortgage size.
Both options can go toward your down payment, closing costs, prepaid items, or principal reduction. Use our Colorado down payment assistance guide for a deeper breakdown, and estimate your target with the down payment calculator.
| Program | Type | Maximum | Repayment | Who qualifies |
|---|---|---|---|---|
| CHFA DPA Grant | Grant | Lesser of $25,000 or 3% of first mortgage | Never repaid | Paired with a CHFA first mortgage |
| CHFA DPA Second Mortgage | Deferred 2nd loan | Lesser of $25,000 or 4% of first mortgage | Due on sale, refinance, payoff, or move-out | Paired with a CHFA first mortgage |
| CHFA FirstGeneration DPA | Grant/2nd loan | Full $25,000 | Per option chosen | First-generation buyers |
| Local city/county DPA | Forgivable/deferred loan | $5,000–$25,000 | Varies by program | Income- and area-based |
Local City and County Programs
Beyond CHFA, several Colorado jurisdictions run their own assistance funds. Amounts and rules change year to year and by available funding, so confirm current figures with each program before you count on them.
- Denver metro programs commonly offer forgivable second loans, often up to $25,000, forgiven after a set owner-occupancy period.
- El Paso County (Colorado Springs area) offers deferred, low- or zero-interest assistance loans. Compare local costs first with our Colorado Springs cost-of-living guide.
- Aurora runs a homeownership assistance program structured as a deferred-payment loan due at sale or refinance.
Nonprofit channels — Habitat for Humanity, NeighborWorks affiliates, and community development financial institutions (CDFIs) — provide additional paths, sometimes with matched-savings accounts. Employer-assisted housing benefits are worth asking about too.
Eligibility Requirements
CHFA and most local programs share a common core of rules:
- Credit score: generally a 620 minimum, with some programs or lenders requiring 660 or higher.
- First-time buyer definition: someone who has not owned a primary residence in the past three years. Qualified veterans and buyers in targeted areas are often exempt from this test.
- Income limits: set by county and household size; check the current CHFA income and purchase-price limits with your lender.
- Homebuyer education: a CHFA-approved course is mandatory, typically costing $50–$99.
- Occupancy: the home must be your primary residence — no investment or vacation properties.
Run the numbers on what you can borrow with our home affordability calculator before you shop.
2026 Loan Limits That Affect Colorado Buyers
Your assistance is only useful if the loan behind it fits the home you want. Two federal limits matter most.
Conforming (conventional) limits. For 2026 the FHFA baseline conforming limit is $832,750, and the high-cost ceiling is $1,249,125 (FHFA). Most Colorado counties use the baseline; several mountain-resort counties sit at or near the ceiling.
FHA limits. Under HUD Mortgagee Letter 2025-23, the 2026 FHA floor is $541,287 and the ceiling is $1,249,125 (HUD). Colorado county limits vary widely: Denver metro sits around $862,500, Boulder County around $879,750, and the resort counties of Eagle, Garfield, Pitkin, and Summit reach the $1,249,125 ceiling. Review the full picture in our FHA loan requirements guide.
Because Colorado’s median price of about $563,000 sits above the FHA floor in most metros, FHA financing remains workable for a majority of first-time buyers.
Combining Programs With Loan Types
CHFA assistance layers onto standard loan products:
- FHA + CHFA: 3.5% down, with the DPA grant or second mortgage covering most or all of it. FHA carries a 1.75% upfront mortgage insurance premium and an annual premium, so factor that into your monthly cost.
- Conventional + CHFA Preferred: 3% down through the conventional route, with private mortgage insurance that can be canceled once you reach 20% equity.
- VA + CHFA: eligible veterans can combine zero-down VA financing with DPA applied to closing costs; no mortgage insurance applies.
- USDA + CHFA: in eligible rural areas, USDA offers zero-down financing while DPA covers upfront costs.
If you have little or no savings, our guide to buying with no money down explains how these stack. Estimate what you’ll owe at the table with the closing cost calculator.
How to Apply, Step by Step
- Check your credit and budget. Pull your score and set a realistic price range.
- Find a CHFA-participating lender. Assistance flows through approved lenders; compare a few using our list of the best mortgage lenders in Colorado and options for first-time buyers.
- Complete homebuyer education. Finish the CHFA-approved course and keep your certificate.
- Get pre-approved. Your lender confirms your loan product and which DPA option fits.
- Shop, offer, and close. DPA is processed alongside the mortgage, so timing tracks a normal purchase — usually 30 to 60 days from contract to closing.
Additional Resources for Colorado Buyers
Look past the purchase price. In many Colorado communities, homeowners association dues and rising insurance premiums shape your true monthly cost. Vet any HOA before you commit using our HOA evaluation checklist, and price coverage with our Colorado homeowner insurance guide. If you are still weighing states, our Utah vs. Colorado comparison lays out the trade-offs. For a national view, see first-time homebuyer programs and grants in 2026.
Frequently Asked Questions
How much down payment assistance can a Colorado first-time buyer get from CHFA?
CHFA offers a grant of the lesser of $25,000 or 3% of your first mortgage, or a deferred second mortgage of the lesser of $25,000 or 4%. You choose one, not both. FirstGeneration and HomeAccess borrowers can access the full $25,000.
Do I have to repay CHFA down payment assistance?
The DPA Grant is never repaid. The DPA Second Mortgage has no monthly payments but comes due when you sell, refinance, pay off the first mortgage, or stop living in the home as your primary residence.
Do I have to be a first-time buyer to qualify?
Not always. CHFA SmartStep does not require first-time status, and qualified veterans and buyers in designated targeted areas are often exempt from the three-year first-time buyer rule.
What credit score do I need for a CHFA loan?
Most CHFA programs require a minimum 620 credit score, though some products or individual lenders set the bar at 660 or higher.
What are the 2026 loan limits in Colorado?
The 2026 conforming baseline is $832,750, with a $1,249,125 high-cost ceiling. FHA limits range from a $541,287 floor to a $1,249,125 ceiling, with Denver metro near $862,500, Boulder around $879,750, and resort counties at the ceiling.
Can I combine CHFA assistance with local city or county programs?
Often yes. CHFA state assistance can stack with a local forgivable or deferred loan, as long as your lender participates in both and total assistance stays within program rules.
Sources: Colorado Housing and Finance Authority; HUD Mortgagee Letter 2025-23; FHFA; Redfin Colorado; U.S. Census Bureau.