Colorado First-Time Home Buyer Guide 2026
CHFA SmartStep, FirstStep, and DPA Grant programs, income limits by county, and step-by-step guidance for Colorado first-time home buyers navigating the state’s competitive Front Range and mountain markets.
CHFA Programs for Colorado First-Time Home Buyers
The Colorado Housing and Finance Authority (CHFA) is the primary first-time homebuyer assistance provider in Colorado. CHFA offers below-market interest rate mortgages paired with optional down payment assistance through a network of approved lenders statewide.
| Program | Loan Type | DPA Available | Min Credit | Best For |
|---|---|---|---|---|
| CHFA SmartStep | Conventional | Up to 4% or $25K (second mortgage, 0%) | 620 | First-time buyers; can be used statewide |
| CHFA FirstStep | FHA | Up to 4% DPA (second mortgage) | 620 | FHA buyers with limited down payment |
| CHFA DPA Grant | Conventional or FHA | Up to 3% grant (no repayment) | 620 | Buyers who want grant vs. loan structure |
| CHFA Section 8 | Conventional | Yes — standard CHFA DPA available | 620 | Section 8 voucher holders buying their home |
CHFA Down Payment Assistance Options
CHFA offers two down payment assistance structures that pair with a CHFA first mortgage (SmartStep or FirstStep): a true grant that’s never repaid, or a larger second-mortgage loan with deferred repayment.
| Option | Assistance Amount | Structure | Repayment |
|---|---|---|---|
| CHFA DPA Grant | Up to 3% of the first mortgage loan amount | Grant — no second mortgage | Never repaid |
| CHFA Second Mortgage Loan | Up to 4% of the first mortgage loan amount (or $25,000) | 0% interest second mortgage | Deferred until you sell, refinance, or pay off the first mortgage |
The CHFA DPA Grant provides up to 3% of the first mortgage loan amount as a true grant — it does not need to be repaid. This is one of the most straightforward DPA structures available in Colorado.
| Feature | Detail |
|---|---|
| Grant amount | Up to 3% of the first mortgage loan amount |
| Repayment | None — true grant, no repayment ever |
| Eligible loans | Must pair with a CHFA first mortgage (SmartStep or FirstStep) |
| Income limit | CHFA county income limits apply |
| Purchase price limit | CHFA county limits apply |
| Min credit score | 620 |
| Homebuyer education | Required — CHFA-approved course |
On a $500,000 CHFA first mortgage, a 3% grant equals $15,000 — a significant contribution toward the down payment and closing costs. Combined with a SmartStep or FirstStep first mortgage, some Colorado buyers can purchase with minimal out-of-pocket expense.
CHFA Income and Purchase Price Limits
| County / Area | Income Limit (Non-Targeted, 1–2 person HH) | Max Purchase Price (Non-Targeted Area) |
|---|---|---|
| Denver / Adams / Arapahoe / Jefferson / Douglas / Broomfield | $144,000 | $832,750 |
| Boulder County | $150,000 | $832,750 |
| El Paso County (Colorado Springs) | $127,800 | $566,730 |
| Larimer County (Fort Collins) | $130,400 | $664,190 |
| Weld County (Greeley) | $153,600 | $735,320 |
| Pueblo County | $153,360 | $692,210 |
| Rural eastern/western CO (e.g., Costilla, Baca, Bent) | $153,360 | $692,210 |
Figures reflect CHFA’s official Income and Purchase Price Limits document, effective June 15, 2026, for the Non-Targeted Area / FirstStep and FirstGeneration programs. Targeted-area limits (available in designated census tracts) are higher in most counties. CHFA purchase price limits are set independently by CHFA and are not the same as FHA loan limits. Verify current figures at chfainfo.com or with a CHFA-participating lender, as limits are updated periodically.
CHFA Eligibility Requirements
To qualify for CHFA first-time buyer programs and down payment assistance, buyers generally must meet the following requirements:
- First-time homebuyer: Have not owned a primary residence in the past 3 years (waived for targeted areas and some veterans)
- Income: At or below CHFA income limits for your county
- Purchase price: At or below CHFA purchase price limits for your county
- Credit score: Minimum 620
- Primary residence: Must occupy the home as primary residence
- Homebuyer education: CHFA-approved homebuyer education course required before closing
- CHFA-participating lender: Must use a lender on CHFA’s approved list
Combining CHFA DPA options: The CHFA DPA Grant and CHFA Second Mortgage Loan cannot be combined on the same loan — you choose one or the other based on whether you prefer no repayment (Grant) or a larger assistance amount with deferred repayment (Second Mortgage Loan). Ask your CHFA-participating lender which option best fits your situation.
Step-by-Step Buying Process for Colorado First-Time Home Buyers
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | Minimum 620 for all CHFA programs. |
| 2 | Complete homebuyer education | Complete a CHFA-approved 8-hour homebuyer education course. Required before closing. |
| 3 | Find a CHFA-participating lender | Not all Colorado lenders offer CHFA. Use CHFA’s lender search at chfainfo.com. |
| 4 | Get pre-approved | Your lender will determine which CHFA program fits best based on your income, credit, and target purchase price. |
| 5 | Make an offer | Colorado real estate contracts use the Colorado Real Estate Commission (CREC) standard forms. Review the inspection deadlines and objection periods carefully. |
| 6 | Due diligence period | Colorado’s inspection objection period is typically 10–15 days under the standard contract. |
| 7 | Close with title/escrow | Colorado is an escrow-based state; no attorney is required at closing. |
