First-Time Home Buyer Programs in Colorado

Updated on 6/17/2025
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Colorado Housing and Finance Authority (CHFA) Programs:

CHFA FirstStep and FirstStep Plus:

Eligibility: First-time buyers (no ownership in past 3 years) or buyers in targeted areas.
Offerings: 30‑year fixed-rate first mortgage (FHA, VA, USDA, or conventional), with optional 3% second mortgage for down payment assistance (FirstStep Plus); no interest and repayment matches the first mortgage.
Requirements:

  • County-based income limits (e.g. ~$137,500 in Denver County).
  • Credit score ≥ 620 (or 660 for conventional loans).
  • Debt-to-income ratio ≤ 45% (can extend to 50% with higher credit score).
  • Homebuyer education course mandatory.

CHFA Advantage:

Benefits: Conventional 30‑year fixed-rate mortgage without first-time buyer requirement; eligible for pairing with DPA grants.

CHFA Down Payment Assistance Grant:

Description: New in 2025 — Offers up to 3% of first mortgage (max $25,000) as a non-repayable grant.
Plus: Second mortgage option offers up to 4% (max $25,000), deferred until sale/refinance; available to first-gen buyers or people with permanent disabilities regardless of loan size. Learn more at CHFA.

Local Programs:

Denver (MetroDPA / Metro Mortgage Assistance Plus):

Grant assistance now offers up to **4%** (previously 5%) of loan amount for first-time or repeat buyers; income cap ~$103,000–$195,000 (varies by household size); credit score ≥ 640.

Colorado Springs

El Paso County Turnkey Mortgage: Up to $15,000 forgivable second loan (5-year forgivable) for buyers ≤ 80% AMI with required counseling. (No change)

Boulder

City of Boulder Down Payment Assistance: Up to 10% of purchase price (max $40,000) deferred 0% interest for first-time buyers in permanently affordable homes. (No change)

Legislative Update:

New law “SB 25‑167” (June 2025) enables shared-equity down payment assistance through CHFA for public school employees via Participating Lenders.

Additional Information:

  • Mortgage Credit Certificate (MCC): Federal tax credit up to 20% of mortgage interest (max $2,000); $800 fee.
  • USDA & VA Loans: Zero-down options for rural and veteran buyers.
  • FHA Loans: 3.5% down (credit ≥ 580), 10% down if lower score.
  • CHAC DPA: Statewide low-interest, deferred-payment loan options with minimum $1,000 buyer contribution.
View First-Time Home Buyer Programs for: California
View First-Time Home Buyer Programs for: Connecticut