Buying your first home can feel overwhelming, especially when you’re trying to save for a down payment and closing costs. Fortunately, Colorado offers several programs that can help first-time buyers purchase a home sooner than they may think.
Whether you’re looking in Denver, Aurora, Colorado Springs, or surrounding communities, there are resources available that may help reduce the amount of cash needed upfront.
First-Time Homebuyer Programs in Colorado (Quick Answer)
Colorado first-time homebuyers may qualify for down payment assistance, closing cost assistance, grants, and low-interest second mortgages through programs such as CHFA, CHAC, and local city initiatives. Many buyers can purchase a home with as little as 3% down, and some programs can help cover a significant portion of upfront costs.
Who Is Considered a First-Time Homebuyer?
Many people are surprised to learn that “first-time buyer” doesn’t always mean you’ve never owned a home.
For many programs, you may qualify if:
- You have never owned a home, or
- You have not owned a home in the last three years
This means many renters who owned a home years ago may still be eligible.
Statewide Programs Available Across Colorado
CHFA (Colorado Housing and Finance Authority)
CHFA is one of the most widely used homebuyer assistance programs in Colorado.
Benefits may include:
- Down payment assistance
- Closing cost assistance
- FHA, VA, USDA, and Conventional loan options
- Competitive mortgage rates
CHFA assistance is typically structured as a second mortgage and can significantly reduce the cash needed at closing.
CHAC (Colorado Housing Assistance Corporation)
CHAC provides assistance for qualified homebuyers throughout Colorado.
Potential benefits include:
- Down payment assistance
- Closing cost assistance
- Low-interest or deferred-payment second mortgages
- FHA, VA, and Conventional financing options
Many buyers use CHAC to bridge the gap between their savings and the funds needed to purchase a home.
Denver Homebuyer Programs
Denver periodically offers programs designed to help residents achieve homeownership.
Depending on funding availability, programs may include:
- Down payment assistance
- Affordable housing initiatives
- Homebuyer education resources
Program availability can change, so it’s important to review current guidelines before starting your home search.
Aurora Homebuyer Programs
Aurora buyers may have access to:
- State assistance programs
- County-level assistance programs
- Affordable housing resources
- Homebuyer education programs
Many Aurora buyers combine local resources with CHFA or CHAC assistance to reduce upfront costs.
Colorado Springs Homebuyer Programs
Colorado Springs and El Paso County residents may qualify for:
- State-sponsored assistance programs
- Local affordable housing initiatives
- Homebuyer education opportunities
Because housing prices and program availability can vary, it’s helpful to explore all available options before determining how much cash you’ll need to buy.
How Much Money Do You Need to Buy a Home?
One of the biggest myths in real estate is that you need 20% down.
In reality:
- Conventional loans may allow as little as 3% down
- FHA loans may allow 3.5% down
- VA loans may allow 0% down for eligible veterans
- Assistance programs may help cover some of the required funds
The amount you need depends on your loan program, credit profile, and the assistance available.
Not sure what price range fits your budget? Read How Much House Can You Afford in 2026?
Why Homebuyer Education Matters
Many assistance programs require completion of a homebuyer education course.
These courses help buyers understand:
- Budgeting
- Credit
- Mortgage options
- The homebuying process
- Long-term homeownership responsibilities
The goal is to help buyers become successful homeowners, not just successful borrowers.
The Bottom Line
Many prospective buyers assume they need years to save before purchasing a home.
However, Colorado’s first-time homebuyer programs may make homeownership possible sooner than expected.
The best first step is understanding which programs you may qualify for and how they can work together with your mortgage financing.
Frequently Asked Questions
Do I have to be a first-time buyer to qualify?
Not always. Many programs define a first-time buyer as someone who has not owned a home within the last three years.
How much down payment assistance is available?
The amount varies by program, income level, and funding availability. Some programs may provide several thousand dollars toward your purchase.
Can I combine multiple assistance programs?
In some cases, yes. Certain programs can be layered together, depending on program guidelines and lender requirements.
What credit score do I need?
Many programs require a minimum credit score around 620, though requirements vary by loan type and assistance program.
Before applying, it’s helpful to understand the Minimum Credit Scores for Home Loans required by different programs.
Are there income limits?
Some programs have income limits, while others do not. Eligibility depends on the specific program being used.
Do I have to repay down payment assistance?
It depends on the program. Some assistance is repaid when the home is sold or refinanced, while other programs may offer forgivable assistance after a certain period.
If you’re looking for assistance with your down payment, be sure to read our guide on Down Payment Assistance Programs in Colorado.