First-Time Home Buyer Programs in Colorado

Colorado Housing and Finance Authority (CHFA) Programs:

CHFA FirstStep and FirstStep Plus:

Eligibility: Designed for first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate first mortgage (FHA, VA, USDA, or conventional) with an optional 3% second mortgage for down payment assistance (FirstStep Plus); second loan has no interest and matches the first mortgage rate.
Requirements:

• Income must not exceed county-specific limits (e.g., $137,500 in Denver County as of 2025).
• Minimum credit score of 620 (or 660 for conventional loans).
• Debt-to-income ratio capped at 45% (50% with higher credit scores).
• Homebuyer education course required for all first-time buyers.

CHFA Advantage:

Benefits: Offers a conventional 30-year fixed-rate mortgage with no first-time buyer requirement; can be paired with down payment assistance programs.
Eligibility: Open to all buyers meeting income and purchase price limits; no prior homeownership restriction.

CHFA Down Payment Assistance Grant:

Description: Provides up to 4% of the first mortgage amount as a non-repayable grant for down payment or closing costs; combinable with CHFA first mortgages.
Requirements: Must use a CHFA first mortgage; income limits apply (e.g., $115,600 for a family of two in non-targeted areas).

Local Programs:

Denver

Metro Mortgage Assistance Plus Program: Offers up to 4% of the loan amount (max $25,000) as a 0% interest, deferred second loan for first-time buyers in Denver; income must not exceed 100% AMI (e.g., $109,900 for a family of four).

Colorado Springs

El Paso County Turnkey Mortgage Program: Provides up to $15,000 as a forgivable second loan (forgiven after 5 years) for down payment and closing costs; income must be at or below 80% AMI, and buyers must complete counseling.

Boulder

City of Boulder Down Payment Assistance: Offers up to $50,000 as a deferred, 0% interest loan for first-time buyers earning up to 100% AMI; restricted to permanently affordable homes within Boulder city limits.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000) for first-time buyers or those in targeted areas when using a CHFA mortgage; fee of $800 applies.
• USDA and VA Loans: Zero-down payment options for rural areas (USDA) or veterans/active military (VA).
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).