Guides / Down Payment Assistance / Colorado

Down Payment Assistance in Colorado

Colorado does have a distinct, real state-level down payment assistance system, run entirely through the Colorado Housing and Finance Authority (CHFA), the state's official housing finance agency — there is no need to fall back to a regional/city program. CHFA does not offer a single flat "$X" giveaway; instead, buyers pair a CHFA first mortgage (FirstStep, FirstStep Plus, SmartStep, SmartStep Plus, or HomeAccess) with one of two DPA options — a non-repayable grant (up to the lesser of $25,000 or 3% of the loan) or a deferred second-mortgage loan (up to the lesser of $25,000 or 4% of the loan) — and a newer CHFA FirstGeneration program that provides up to $25,000 as a deferred second mortgage specifically for first-generation homebuyers. All CHFA programs require a CHFA-approved lender, a 620 minimum mid-credit score, mandatory homebuyer education, a $1,000 minimum borrower financial contribution, and compliance with income and purchase-price limits that vary significantly by county and household size (verified example: El Paso County's 2026 non-targeted-area limit is $127,800 for 1-2 person households and $146,970 for 3+, with a $566,730 purchase price cap — other counties differ, so buyers must check their specific county). Note: CHFA's official chfainfo.com site blocked direct automated fetching (403 errors), so these figures were cross-verified across multiple independent secondary sources (mortgage lenders, NCSHA industry coverage) that consistently reported the same numbers as of 2026; readers should still confirm final terms directly with a CHFA-approved lender or chfainfo.com before relying on them, since DPA program terms and county limits are updated periodically.

Programs

CHFA Down Payment Assistance Grant (paired with CHFA FirstStep, FirstStep Plus, SmartStep, SmartStep Plus, or HomeAccess first mortgage)
Colorado Housing and Finance Authority (CHFA) — the state's official housing finance agency
Amount: A grant of up to the lesser of $25,000 or 3% of the first mortgage loan amount. This is a true grant — it never has to be repaid. (CHFA's own example: on a $200,000 mortgage, the grant is roughly $6,000.) Must be paired with a CHFA first-mortgage loan; cannot be combined with the CHFA DPA second mortgage on the same loan.
Type: Grant (non-repayable)
Must use a CHFA-approved participating lender and pair with a CHFA first mortgage (FHA, VA, USDA, or conventional). Open to first-time homebuyers, qualified veterans, or buyers purchasing in a federally designated targeted area (first-time buyer requirement waived in targeted areas). Minimum mid-credit score of 620 for scored borrowers (exceptions possible for borrowers with no credit score). Borrower must contribute a Minimum Financial Investment of $1,000 toward the purchase. Every borrower/co-borrower must complete a CHFA-approved homebuyer education course before closing. Household income and home purchase price must fall under county-specific limits (these vary widely by county and household size — e.g., El Paso County's 2026 non-targeted-area limit is $127,800 for a 1-2 person household and $146,970 for 3+, with a $566,730 purchase price cap; limits differ in other counties).
CHFA Down Payment Assistance Second Mortgage (paired with CHFA FirstStep, FirstStep Plus, SmartStep, SmartStep Plus, or HomeAccess first mortgage)
Colorado Housing and Finance Authority (CHFA)
Amount: A deferred, low-interest second mortgage loan of up to the lesser of $25,000 or 4% of the first mortgage loan amount. Repayment (principal, no ongoing amortized payments) is deferred until the home is sold, refinanced, or the first mortgage is paid off. (CHFA's example: on a $200,000 mortgage, this option provides roughly $8,000.)
Type: Deferred repayable second mortgage loan (0% or low interest, due on sale/refinance)
Same core requirements as the CHFA DPA Grant: CHFA-approved lender and first mortgage required, first-time homebuyer/veteran/targeted-area status, 620 minimum mid-credit score, $1,000 minimum borrower financial investment, mandatory CHFA-approved homebuyer education, and county-specific income and purchase-price limits. Borrowers choose either the grant or the second mortgage option, not both.
CHFA FirstGeneration
Colorado Housing and Finance Authority (CHFA) — launched July 2024, active through 2026
Amount: Up to $25,000 in down payment assistance, structured only as a deferred second mortgage (no grant option). Funds can be applied to the down payment, closing costs, principal reduction on the first mortgage, or prepaying HOA dues. Paired with a 30-year fixed-rate FHA first mortgage.
Type: Deferred repayable second mortgage loan (FHA-only, no grant alternative), repayment deferred until sale, refinance, or payoff of the first mortgage
Restricted to 'first-generation' homebuyers: borrowers who have never owned a home and whose parents/legal guardians have also never owned a home (individuals raised in foster care also qualify regardless of parental homeownership history). Must submit an affidavit attesting to first-generation status. Must complete CHFA-approved homebuyer education. Subject to county-specific income limits and purchase price limits (two separate income calculations apply — standard and targeted-area). Same general credit and lender-participation framework as CHFA's other DPA offerings (620 minimum mid-credit score, CHFA-approved lender required).

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in ColoradoTransfer Tax & Closing Costs in ColoradoBuyer-Agent Agreements in ColoradoSeller Disclosure Laws in ColoradoFind Agents in ColoradoDown Payment Calculator