Buying your first home in Colorado can feel overwhelming—especially when it comes to saving for a down payment and closing costs.
The good news is that there are several first-time homebuyer programs in Colorado designed to make homeownership more accessible.
Here’s how they work and what to know.
First-Time Buyer Programs in Colorado (Quick Answer)
Colorado offers several first-time homebuyer programs that provide down payment and closing cost assistance, often in the form of grants or low-interest second mortgages. The most common programs include CHFA (Colorado Housing and Finance Authority) and CHAC (Colorado Housing Assistance Corporation), along with city and county programs. Many buyers can qualify with as little as 3% down—or even less out of pocket when combining assistance programs.
What Is a First-Time Homebuyer?
In most programs, “first-time buyer” doesn’t necessarily mean you’ve never owned a home.
You typically qualify if:
- You haven’t owned a home in the past 3 years, or
- You meet certain income or property guidelines
This means many buyers who owned a home years ago can still qualify.
1. CHFA (Colorado Housing and Finance Authority)
Colorado Housing and Finance Authority (CHFA) is the most widely used statewide program.
Key benefits:
- Down payment assistance up to 3%–4% of the loan amount
- FHA, VA, USDA, and Conventional options
- Competitive interest rates
How it works:
- Assistance is usually a second mortgage
- Often includes low or no monthly payments
- Repaid when you sell, refinance, or pay off the home
CHFA is a strong option for buyers who need help with upfront costs.
2. CHAC (Colorado Housing Assistance Corporation)
Colorado Housing Assistance Corporation (CHAC) is a nonprofit program that provides flexible assistance.
Key benefits:
- Up to 4% of the purchase price
- Can be used for down payment and closing costs
- Works with Conventional, FHA, and VA loans
Structure:
- Typically a 0% interest second mortgage
- No monthly payment
- Repaid when you sell or refinance
CHAC is often a great option for buyers who want to minimize monthly payments.
3. Local City and County Programs
Many Colorado cities and counties offer additional assistance, including:
- Denver
- Aurora
- Thornton
- Adams County
- Arapahoe County
These programs may offer:
- Grants that don’t require repayment
- Forgivable second loans
- Additional assistance layered on top of CHFA or CHAC
Availability can change, so timing matters.
How Much Assistance Can You Get?
Depending on the program and your qualifications, assistance can range from:
- A few thousand dollars
- To $10,000–$20,000+ when combining programs
This can significantly reduce—or even eliminate—your upfront costs.
What Are the Requirements?
Most programs require:
- Minimum credit score (often 620+)
- Income within program limits
- Completion of a homebuyer education course
- Purchase of a primary residence
Each program has slightly different guidelines.
Tradeoffs to Consider
While these programs are powerful, they may include:
- Slightly higher interest rates
- Repayment requirements on second loans
- Income or purchase price limits
For many buyers, the ability to buy sooner outweighs these tradeoffs.
Why These Programs Matter
In a market like Colorado, where home prices can be high, these programs can:
- Reduce time spent saving
- Preserve your cash reserves
- Make homeownership possible sooner
Many buyers who think they need years to save may already qualify today.
The Bottom Line
First-time buyer programs in Colorado are designed to remove one of the biggest barriers to homeownership: upfront costs.
With the right combination of loan options and assistance programs, many buyers can purchase a home with far less cash than they expect.
Frequently Asked Questions
Do I have to be a first-time buyer to qualify?
Not always. Many programs allow buyers who haven’t owned a home in the past 3 years.
Can I combine multiple programs?
Yes, in some cases you can layer programs like CHFA with local assistance.
Do I have to pay the assistance back?
It depends. Some programs are forgivable, while others are repaid when you sell or refinance.
What credit score do I need?
Most programs require at least 620, though requirements vary.
Can these programs cover all my closing costs?
In some cases, yes—especially when combined with seller concessions or lender credits.