Colorado First-Time Home Buyer Programs 2026: CHFA Guide

CHFA Programs Overview

The Colorado Housing and Finance Authority (CHFA) is the state housing finance agency, offering first mortgages and down payment assistance through approved lenders statewide.

CHFA's program names follow a pattern: the base program (FirstStep, Preferred, SmartStep) is the first mortgage, and the "Plus" versions add down payment assistance. Government loans (FHA/VA/USDA) and conventional options are both available.

CHFA FirstStep Plus: FHA + DPA

FirstStep Plus pairs an FHA, VA, or USDA first mortgage with down payment assistance. It is designed for first-time buyers (the first-time requirement is waived in targeted areas and for qualified veterans).

The DPA can be structured as a grant (up to 3%, never repaid) or a deferred second loan (up to 5%, due at sale or refinance). On a $450,000 Denver-area loan, the 3% grant provides $13,500 with zero repayment obligation — one of the few true grants among state programs.

Minimum credit score is 620. Income limits are approximately $120,000-$160,000 depending on county and household size. See our FHA vs conventional guide for loan-type comparison.

• FHA, VA, or USDA 30-year fixed first mortgage
• DPA grant up to 3% — never repaid
• Or deferred second up to 5% — due at sale/refi
• Minimum 620 credit score
• First-time buyer (waived in targeted areas and for veterans)
• Income limits ~$120,000-$160,000 by county

CHFA Preferred Plus: Conventional + DPA

Preferred Plus pairs a conventional first mortgage with the same DPA options (3% grant or 5% deferred second). The conventional route offers lower mortgage insurance costs for borrowers with 680+ credit scores.

A key advantage: CHFA Preferred uses reduced mortgage insurance rates compared to standard conventional loans, and the MI cancels automatically at 78% LTV — unlike FHA's lifetime MIP on most loans.

For buyers with good credit, Preferred Plus often beats FirstStep on total monthly cost even with a slightly higher rate. Ask your lender to compare both side by side.

• Conventional 30-year fixed first mortgage
• Same DPA options: 3% grant or 5% deferred second
• Reduced mortgage insurance vs standard conventional
• MI cancels at 78% LTV — unlike FHA MIP
• Best for 680+ credit scores
• Minimum 620 credit score required

CHFA DPA Grant vs Second Mortgage

CHFA offers two DPA structures, and the choice matters. The DPA Grant provides up to 3% of the first mortgage as a true grant — no repayment, no second lien, no strings. The trade-off is a slightly higher first-mortgage rate.

The DPA Second provides up to 5% as a 0% interest deferred loan — more assistance, but the balance comes due when you sell or refinance. On a $450,000 loan: grant = $13,500 free; second = $22,500 repayable.

Rule of thumb: if you need maximum assistance, take the second. If you can cover costs with 3%, the grant is free money with a cleaner exit.

• DPA Grant: up to 3%, never repaid, slightly higher rate
• DPA Second: up to 5%, 0% interest, due at sale/refi
• Grant = less money but zero obligation
• Second = more money but repayable on exit
• Both pair with FirstStep, Preferred, or SmartStep
• Compare total cost with your lender before choosing

CHFA Income and Purchase Price Limits 2026

CHFA income limits vary by county and program. Here are the approximate 2026 limits for major Colorado counties — verify at CHFAinfo.com.

• Income limits based on borrower qualifying income
• Boulder County has the highest limits
• Purchase price limits apply to total price
• Targeted areas have higher limits and no first-time requirement
• Verify current limits at CHFAinfo.com

CHFA Eligibility Requirements

CHFA first-time buyer requirement (for FirstStep) means no ownership in a primary residence in the past 3 years — waived in targeted areas and for qualified veterans. Preferred and SmartStep have more flexible eligibility.

Credit score: minimum 620 for all CHFA programs. DTI: maximum 50% for most loans. A minimum borrower contribution of $1,000 (or 1% for some programs) is required — gifts can cover the rest. See our DTI ratio guide for strategies.

Occupancy: primary residence only. Homebuyer education: required for first-time buyers — CHFA offers free online and in-person classes.

• First-time buyer for FirstStep (waived: targeted areas, veterans)
• Credit score: 620+ for all programs
• DTI: up to 50% for most loans
• Minimum contribution: $1,000 or 1% (gifts allowed for rest)
• Primary residence only
• Complete CHFA homebuyer education
• Must use a CHFA-approved lender

How to Apply for CHFA Programs

CHFA programs are accessed through approved lenders — you cannot apply directly to CHFA.

Step 1: Find a CHFA-approved lender at CHFAinfo.com. Step 2: Get pre-approved — the lender confirms eligibility and compares grant vs second options. Step 3: Complete homebuyer education. Step 4: Find a home within the purchase price limit. Step 5: Close — DPA funds are delivered at settlement.

• Step 1: Find a CHFA-approved lender at CHFAinfo.com
• Step 2: Get pre-approved and compare DPA structures
• Step 3: Complete required homebuyer education
• Step 4: Shop within county purchase price limits
• Step 5: Close — assistance delivered at settlement
• Tip: Ask for grant vs second comparison — the right choice saves thousands

Local Colorado DPA Programs

Several Colorado cities and counties offer additional assistance.

• metroDPA is a popular Denver-area program with 3-year forgiveness
• Boulder's program is large but has strict income limits
• Local programs may stack with CHFA — ask your lender
• City programs typically require purchase within city limits