Colorado first-time homebuyer grants and down payment assistance (2026)

CHFA’s grant versus its deferred second mortgage

Scroll the table sideways to see every column.

CHFA’s own example: on a $200,000 mortgage, the grant is up to $6,000 and the second mortgage up to $8,000. The percentage caps assume a 30-year fixed-rate loan ⁠¹. The second mortgage is never forgiven. If you refinance into anything other than CHFA’s FHA Streamline Refinance, CHFA will not subordinate the second, so you must repay it at closing. CHFA allows only one subordination ⁠². Buyers with a permanent disability can use CHFA HomeAccess, which also offers up to $25,000 regardless of loan size ⁠¹.

CHFA FirstGeneration is for buyers who have never owned a home and whose parents or guardians never owned one during the buyer’s lifetime. Buyers who lived in foster care need only to have never owned a home. On a joint loan, one borrower must be first-generation and all must be first-time buyers, meaning no ownership in the past three years ⁠³. The $25,000 is a zero-percent silent second. It is due on sale, on refinance, or when the home stops being your primary residence ⁠⁴. It requires an FHA first mortgage. Other community second mortgages can be stacked in third position ⁠³⁠⁴. CHFA says funding is not limited and there is no application window ⁠³.

CHFA Schools To Home was announced for a July 2026 launch. It offers full-time Colorado public school employees a second mortgage of up to 25% of the first mortgage. The second is repaid with a share of the home’s appreciation, which goes to the Public School Permanent Fund. It requires an extra course, “Understanding Your Financial Commitment” ⁠¹⁰.

Which CHFA first mortgage carries the help

CHFA’s income table groups its loans in two tiers ⁠⁷:

• CHFA FirstStep and CHFA FirstGeneration are funded with tax-exempt bonds. They have the lowest rates but federal rules: first-time buyers only (qualified veterans and buyers in targeted areas are exempt), FHA loans only, county income and price limits, and a compliance review before closing. FirstStep can take the second mortgage but not the grant ⁠⁵.
• CHFA SmartStep, CHFA Preferred, Colorado HFA1 and CHFA HomeAccess have one statewide income limit for every household size and no purchase price limit. CHFA Preferred also has a Very Low Income Program (VLIP) tier ⁠⁷.

FirstStep and FirstGeneration count income differently from your lender. CHFA’s “gross annual income” adds every borrower’s income plus the income of a spouse or civil union partner who will live in the home. It is usually higher than the lender’s credit-qualifying income ⁠⁵. These two programs can also trigger the federal recapture tax if you sell within nine years at a gain and your income has risen past the federal threshold. CHFA reimburses that tax if you file Form 950 ⁠²⁠⁴.

CHFA income and purchase price limits by county

CHFA limits depend on county, household size, targeted or non-targeted area, and loan program. New tables took effect for loans locked on or after June 15, 2026 ⁠²⁠⁶. CHFA’s site blocks automated access, and no archived copy of the June 2026 table exists, so we could not confirm the new figures. The last edition we could read took effect May 19, 2025. It shows the structure and the scale ⁠⁷:

The May 2025 figures for Denver, Adams, Arapahoe and Jefferson were $140,100 (1-2 people) and $161,110 (3+), with an $806,500 price cap. El Paso County was $124,600 and $143,290, with a $553,960 cap. To find your county, open “All CHFA Home Loan Programs - for locks made on or after June 15, 2026” on CHFA’s Income Limits page. Ask your lender whether the address is in a targeted area ⁠⁶⁠⁷.

Credit, DTI, contribution and class rules

Credit. Every CHFA borrower needs a 620 mid credit score. Borrowers with no score can be manually underwritten under CHFA and FHA rules ⁠²⁠⁴.

Debt-to-income. The FirstGeneration matrix (effective June 30, 2025) caps DTI at 50% for scores of 620 to 659 and 55% at 660 or above. FHA or the automated underwriting finding can set a lower cap ⁠⁴. We could not open current matrices for CHFA’s other loans.

Your own money. You must put in at least $1,000. It can be a gift from family and counts toward the down payment or closing costs ⁠². Cosigners and non-occupying co-borrowers are not allowed on FirstGeneration ⁠⁴.

Education. Each borrower must register for and finish a CHFA-approved homebuyer class before closing and get their own certificate. CHFA-sponsored classes run through housing counseling agencies statewide. In-person classes are free and last about six hours. The online option costs $75 and needs a follow-up call with the provider. Certificates are valid for 12 months, and you must be under contract before yours expires ⁠⁸.

No Colorado mortgage credit certificate since 2018

CHFA states that it has not issued Mortgage Credit Certificates since 2018. It still reissues existing certificates when a holder refinances, using the original loan’s amortized balance ⁠⁹. FirstGeneration loans cannot be combined with an MCC ⁠⁴. So a CHFA loan in 2026 comes with no mortgage interest tax credit.

Denver’s metroDPA and the new denFirstGen loan

metroDPA is sponsored by Denver for the Metro Mayors Caucus. It works in incorporated cities in Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert, Jefferson, Larimer and Weld counties, including Aurora, Boulder, Fort Collins, Greeley, Lakewood and Longmont. It also covers unincorporated parts of nine of those counties ⁠¹². Under the Sept. 14, 2026 guidelines, assistance is 3% or 4% of the note amount. It is a 0%, 30-year deferred second that is never forgiven and becomes due on sale, transfer, refinance, payoff, or when you move out ⁠¹². Denver’s page still uses a 5% example, but the guidelines list only 3% and 4% ⁠¹¹⁠¹². Other rules ⁠¹²:

• No first-time buyer requirement, and you can use metroDPA more than once
• Minimum 620 FICO
• No program DTI cap beyond automated underwriting approval
• No purchase price limit
• Income limit $216,000 for FHA, VA, USDA and higher-income conventional loans (effective May 1, 2026)
• Conventional loans at or below 80% of AMI: $102,400 (Weld) to $120,000 (Boulder)
• Every borrower and anyone on title needs homebuyer education meeting HUD or National Industry Standards
• The Denver Advantage option was removed on Aug. 4, 2026

denFirstGen launched Sept. 1, 2026, for first-time, first-generation buyers in the City and County of Denver. It pays $30,000, but no more than 20% of the price, as a 0%, 30-year deferred second that is never forgiven. It requires an FHA loan, a 620 FICO and DTI of no more than 38% for housing costs and 43% overall. You also need $1,000 of your own funds, HUD-approved counseling and an NSPIRE inspection within 90 days of loan commitment ⁠¹³. Its household-income limits run from $100,800 for one person to $144,000 for four and $190,100 for eight, and count every household member ⁠¹³.

Pikes Peak DPA in El Paso County, and Aurora’s closed program

The Pikes Peak Down Payment Assistance Program covers all of El Paso County, including Colorado Springs. It pays 2%, 3%, 4% or 5% of the note amount as a 0%, 30-year second mortgage. Half is forgiven month by month over the first five years. The other half is forgiven at year 30. You repay any unforgiven amount if you move out, sell, or pay off or refinance the first mortgage early ⁠¹⁴. The rules ⁠¹⁴:

• No first-time requirement and no price limit
• Minimum 640 FICO; DTI cap 45% (640-679) or 50% (680+)
• Income limit $178,920 for FHA, VA and USDA loans, or $92,560 for Freddie Mac loans at or below 80% of AMI (effective June 13, 2026)
• Hometown Heroes: an extra 1% grant for full-time school staff, first responders, healthcare workers, veterans and active military, limited to 75 loans

Aurora’s Down Payment Assistance covered 4% to 10% of the price as a silent second. It was open to households up to 120% of AMI ($168,120 for four) and funded by a Proposition 123 grant from the Colorado Department of Local Affairs. The city says it is not accepting applications. The offer ran through Oct. 31, 2026, or until funds were gone ⁠¹⁵.

Getting a CHFA or metroDPA loan, step by step

1. Pick the program

   Choose CHFA statewide, metroDPA or denFirstGen in the Denver area, or Pikes Peak DPA in El Paso County. You cannot stack CHFA’s grant with its second mortgage ⁠².

2. Take the class early

   Register with a CHFA-approved provider; every borrower needs a certificate ⁠⁸.

3. Check your limit

   Use CHFA’s June 15, 2026 table, or the metroDPA or Pikes Peak guide ⁠⁶⁠¹²⁠¹⁴.

4. Contact a participating lender

   CHFA and eHousingPlus approve separate lender lists. Denver’s page gives a contact for metroDPA referrals ⁠²⁠¹¹.

5. Gather documents

   Bring pay stubs, bank statements and your latest tax return or transcript. FirstStep and FirstGeneration also need income for an occupying spouse, plus CHFA Forms 401 and 402 ⁠⁴⁠⁵.

6. Reserve and close

   The lender reserves funds after you sign a purchase contract. CHFA’s delivery period is 60 days, and metroDPA requires purchase within 60 days ⁠⁴⁠¹².

If one lender turns you down, another can review your file. Other states are on the first-time homebuyer grants page, and other Colorado guides are on the Colorado page.