Colorado Down Payment Assistance Programs

You have never owned a home

Look at CHFA FirstStep Plus first. It is an FHA loan with a second loan for down payment help — the lesser of $25,000 or 4% of your loan amount. Zero percent. No monthly payment on it. You pay it back when you sell.

You have never owned a home, and neither did your parents

CHFA FirstGeneration Plus gives you up to $25,000 no matter how small your loan is. On a smaller loan that is a lot more help than the 4% programs. Only one buyer on the loan has to be first-generation, but everyone on the loan has to be a first-time buyer.

You have owned a home before

You are not shut out. CHFA SmartStep Plus (FHA) and CHFA Preferred Plus (conventional) both take repeat buyers. So does Schools to Home.

You work for a Colorado school

CHFA Schools to Home is the largest assistance on this page by a wide margin — up to 25% of your first mortgage. It comes with a shared appreciation agreement, which we explain in plain English further down. Read that part before you fall in love with the number.

You need help and you want the smallest strings attached

Ask about the SmartStep Plus grant. It is the lesser of $25,000 or 3% of your first mortgage, and it is never repaid. Not deferred. Not forgiven over time. Just yours.

You or someone in your household has a disability

CHAC runs a program with up to $10,000, no monthly payment ever, and a lower cash requirement from you — $750 instead of the usual 1%.

Credit score and debt limits — the same on all five

FHA programs let you borrow up to 96.5% of the home price. Conventional programs go to 97%. With the assistance stacked on top, the combined total can reach 105%.

What is the same across every CHFA program

• You put in $1,000 of your own. A gift from family counts. So does your earnest money, your appraisal fee, your inspection fee, or your first insurance payment.
• The assistance cannot pay that $1,000 for you. That part has to come from you or a gift.
• No cash back at closing. If the help is more than you need, you do not pocket the difference.
• A homebuyer class is required. Every buyer on the loan takes it individually, and it has to be a CHFA-approved provider. Start it early — it holds up more closings than anything else on this list.
• The help cannot cover everything. It cannot pay off your debts, fix an appraisal that came in low, pay for repairs held in escrow, or cover your own $1,000.
• Income limits and price limits apply. Both change by county and by how many people live in your household.
• One home, one unit, you live in it. No rentals, no vacation homes.

The one difference in pricing

On SmartStep Plus you choose between the grant and the zero percent second loan. They are priced differently, and one is not automatically better. The grant is free money you never repay. The second loan has to be paid back when you sell. Which one leaves you better off depends on how long you stay and what the numbers actually are on your file. We run both and put them next to each other so you can see it in dollars.

Shared appreciation, in plain English

When you sell, refinance, pay off the loan, or stop living there, you owe two things: the assistance back in full, and a share of how much your home went up in value.

Your share is worked out like this. Take the assistance you borrowed and divide it by what you paid for the house. That is your percentage. You owe that percentage of the increase in value.

A worked example

• You buy for $400,000 with a $380,000 first mortgage.
• You take 25% of that loan as assistance — $95,000.
• $95,000 divided by the $400,000 purchase price is 23.75%. That is your share.
• Ten years later you sell for $600,000. The home went up $200,000.
• You owe CHFA the $95,000 back, plus 23.75% of $200,000, which is $47,500.
• Total owed at closing: $142,500.

That is not a hidden fee. It is the deal, written plainly. For a teacher who could not otherwise get into a house at all, it is often still the right deal — you kept 76% of the gain on a home you could not have bought. But you should decide that with the real number in front of you, not a brochure.

Also required

Every buyer on a Schools to Home loan has to take a specific CHFA course called Understanding Your Financial Commitment before closing. That course exists because of exactly what you just read.

The tradeoff, stated simply

The pay now version has a looser income limit but you start making a payment on it immediately. The wait 5 years version gives you five years of breathing room but the income limit is much tighter. A household earning $95,000 in Denver clears the first one easily and does not qualify for the second.

CHAC rules that apply to all of their programs

• Housing costs no more than 35% of your income, and everything you owe no more than 45%.
• One month of house payment in savings when you apply.
• Your new house payment should not be more than 150% of what you pay in rent now.
• You need to show a pattern of saving money.
• Collections and judgments have to be paid off or on a payment plan.
• Everyone in the house over 18 has their income counted — not just the people on the loan.
• No co-signers and no non-occupying co-borrowers. No exceptions.
• No cash back, ever.
• A homebuyer class, and separately a one-on-one counseling session with CHAC after you are conditionally approved.

CHAC income limits, effective June 2, 2026

These are household limits — add up everyone over 18 living in the home.

Conventional first mortgage, anywhere in Colorado:

FHA first mortgage, by county:

The 5-year deferred program uses a much lower table:

CHAC sets no credit score minimum of its own, and manual underwriting is allowed. Your credit is judged by FHA guidelines instead — the same rules your first mortgage follows. CHFA income and price limits change by county too, and we check yours at the start — before you spend a weekend looking at houses.

Read this before you choose the forgivable version

Forgiveness is not automatic and it is not guaranteed. On the Chenoa Fund soft second, you must make 36 consecutive on-time payments on your first mortgage. Miss one during that window and the loan permanently loses its forgivable status — it does not reset. You also have to request forgiveness once you have earned it and pay the cost of releasing the lien. Nobody mails it to you.

Where these beat the Colorado programs

• You earn too much for CHFA or CHAC. No income limit means no income problem.
• Your credit is in the 580 to 619 range. Every CHFA program stops at 620.
• You are buying a duplex. These allow 1 to 2 units. The Colorado programs are one unit only.
• You want a shorter loan. The National Homebuyers Fund offers a 25-year term.

Where the Colorado programs beat these

• Bigger help. CHFA goes to $25,000, and much higher for school employees. 3.5% of a $400,000 home is $14,000.
• No monthly payment on the assistance in most cases, versus a 10-year payment on the repayable national version.
• A true grant exists in Colorado. The SmartStep Plus grant is never repaid and has no 36-payment test.
• Conventional options. The national programs are FHA only.

What it is

• A 30-year fixed conventional first mortgage, with assistance calculated as a percentage of your loan amount.
• The assistance is a zero percent second mortgage, deferred for 30 years. No monthly payment on it.
• It is never forgiven. You repay it in full when you sell, transfer the home, refinance, pay off the first mortgage, or stop living there. That is the clearest difference between this and the forgivable national programs.
• No cash back. Anything left over is applied to your loan balance.
• Two pricing tiers depending on whether your income is at or below 80% of the area median, or above it.

Who qualifies

• First-time buyers and repeat buyers both. Not required to be your first home.
• Credit from 620 on the Fannie Mae version. The Freddie Mac version asks for 660 on a single-family home and 700 on a 2 to 4 unit.
• Up to 97% of the value on one unit, 95% on 2 to 4 units, with the assistance stacked on top to 105%.
• You have to live there, and move in within 60 days of closing.
• Homebuyer education is required for every borrower and anyone else on the title. Taking it after closing does not count.
• A valid Social Security number is required. ITIN borrowers are not eligible.
• Title has to be in your own name. No trusts, life estates, guardianships or conservatorships.

The location catch

Your address is not the test. MetroDPA works inside the incorporated areas of participating cities and the unincorporated areas of participating counties, and a mailing address does not always match where a property legally sits. There is also a Denver Advantage version limited strictly to the City and County of Denver. This is a Denver-area program — it does not cover Colorado Springs. We verify the property location against the current participating list before you write an offer.

Things the assistance is not allowed to pay for

• Your own required contribution. It has to be your money or a gift.
• Paying off debts to help you qualify.
• The gap when an appraisal comes in below the price.
• Repairs the lender is holding money back for.
• Anything that would hand you cash at closing.

What it can pay for

• Your entire down payment.
• Closing costs.
• Prepaid items like your first year of insurance and your tax escrow.
• Paying the loan balance down.
• On FirstGeneration Plus, buying your interest rate down permanently.

The class

The homebuyer class is required, every buyer takes it individually, and it has to be from an approved provider. People wait until they are under contract and then find out the next class is three weeks out. Take it the week you decide to start looking.

Household income, not your income

CHAC counts every adult over 18 living in the home, whether or not they are on the loan. A grown child with a job, a parent living with you — that income counts. This surprises people late in the process, and by then the offer is already written.

Owning something else

First-time buyer programs mean you have not owned and lived in a home in three years, and you do not own other residential property now. A rental you inherited counts. A time-share usually does not, but ask.

The price of the house

These programs cap what you can pay for the home, and the cap changes by county. It is separate from the income limit. A house can be inside your budget and still outside the program.

Needing a co-signer

CHAC does not allow co-signers or non-occupying co-borrowers at all. If you were counting on a parent to sign with you, CHAC is out and we go a different direction.

1. We check the two limits first

Income and purchase price, for your county and your household size. This takes one conversation and it saves people from shopping in the wrong price range for a month.

2. You start the class

Before anything else. It is the most common delay and the easiest one to avoid.

3. We show you what each program gives you in dollars

Not percentages. Actual money on your actual purchase price, with the monthly payment next to it. If two programs fit, you see both.

4. You get pre-approved and go shop

You shop with a real number, and your offer is credible because the financing is already lined up.

5. We handle the paperwork behind the scenes

These programs carry extra forms and an extra approval step from the housing agency. That is our side of it. You take the class, pick a house, and sign at the end.

Do I have to pay back down payment assistance in Colorado?

Usually yes, but not every month. Most Colorado down payment assistance is a second loan at zero percent with no monthly payment. You pay it back in full when you sell the home, refinance it, or stop living there. The exception is the CHFA SmartStep Plus grant option, which is a true grant — you never pay that one back.

How much down payment assistance can I get in Colorado?

Up to $25,000 on most CHFA programs. CHFA Schools to Home goes much higher — up to 25% of your first mortgage amount — but it comes with a shared appreciation agreement. CHAC statewide programs run from $5,000 to $12,000, and the Broomfield program goes up to 10% of the purchase price.

Do I have to be a first-time buyer?

Not always. CHFA SmartStep Plus, HomeOpener Plus, Preferred Plus and Schools to Home all accept buyers who have owned before. CHFA FirstStep Plus and FirstGeneration Plus are first-time only, and every CHAC program is first-time only. First-time generally means you have not owned and lived in a home in the last three years and do not own other residential property now.

What credit score do I need for down payment assistance in Colorado?

On CHFA programs, 620 is the floor. At 620 to 659 your total monthly debts can be up to 50% of your income. At 660 or higher that rises to 55%. CHAC sets no minimum of its own and allows manual underwriting, but your credit still has to meet FHA guidelines, which is what the first mortgage follows.

What is a first-generation homebuyer?

Someone who has never owned a home, and whose parents or guardians never owned a home during that person’s lifetime. On CHFA FirstGeneration Plus, only one buyer on the loan has to meet the first-generation test — but every buyer on the loan still has to be a first-time buyer. It is worth asking about, because it pays up to $25,000 regardless of how small your loan is.

How much of my own money do I need?

$1,000 on any CHFA program, and a gift from family counts. Your earnest money, appraisal fee, inspection fee, or first insurance payment can count toward it. CHAC asks for 1% of the purchase price on its statewide programs, $750 on the disability program, and the greater of $1,000 or 1% in Broomfield. The assistance itself is never allowed to cover your required contribution.

Can down payment assistance cover my closing costs too?

Yes. On CHFA programs the funds can cover your down payment, closing costs, prepaid items like insurance and taxes, and paying down the loan balance. They cannot cover an appraisal gap, repairs held back in escrow, paying off debt to help you qualify, or your own required contribution. And any money left over does not come back to you as cash.

Is a homebuyer class really required?

Yes, and it is the single most common reason these loans get delayed. Every buyer on the loan takes it individually, and it has to come from an approved provider. CHAC requires a class and then a separate one-on-one counseling session after conditional approval. Start the class the week you decide to buy, not the week you go under contract.

Does everyone in my house count toward the income limit?

On CHAC programs, yes. Every adult over 18 who will live in the home has their income counted, whether or not they are on the loan. That includes a grown child with a job or a parent living with you. This catches people late in the process, so it is worth sorting out on day one.

What is shared appreciation on the Schools to Home program?

It means you owe CHFA part of your home’s increase in value, on top of paying the assistance back. Your share is the assistance amount divided by what you paid for the home. If you borrowed $95,000 on a $400,000 purchase, your share is 23.75%. If the home later sells for $600,000, you owe the $95,000 back plus 23.75% of the $200,000 gain, which is $47,500. Every Schools to Home buyer takes a required CHFA course explaining this before closing.

Who qualifies for Schools to Home?

At least one buyer on the loan must be a full-time employee of a Colorado kindergarten through 12th grade public school, school district, charter school, institute charter school, board of cooperative educational services, or innovation zone. It is open to both first-time and repeat buyers.

Can I use down payment assistance on a rental or a second home?

No. Every program on this page requires a one-unit home that you live in as your primary residence. If you move out, the assistance becomes due.

Can I stack two assistance programs together?

Not two CHFA options on the same purchase — you pick either the grant or the zero percent second loan, not both. Some combinations across sources are possible depending on the program rules, and if the numbers work on your file we will tell you. Every source of assistance has to be disclosed on the closing paperwork.

What if my income is too high for the CHAC deferred program?

You likely still qualify for the CHAC program with immediate payments, which uses a much higher income limit, or for a CHFA program. As an example, a Denver household earning $95,000 clears the standard CHAC table comfortably but is over the deferred program’s limit. Being over one limit almost never means you are out of options.

Is there a limit on how much the house can cost?

Yes, and it is separate from the income limit. These programs cap the purchase price, and the cap changes by county. A home can fit your budget and still be over the program’s ceiling, which is why we check both limits before you start looking.

Can I use a co-signer?

Not on a CHAC program — they do not allow co-signers or non-occupying co-borrowers under any circumstances. If a parent needs to be on the loan with you, we look at CHFA or a different structure instead.

Can I get down payment assistance on a manufactured home?

Sometimes. CHFA allows manufactured homes with tighter limits on how much you can borrow against the value. It depends on the program and how the home is titled, so bring it up early rather than late.

What if I already have a CHFA loan and rates have moved?

CHFA offers a streamline refinance for existing CHFA borrowers with an FHA loan. It does not include new down payment assistance — it is for lowering the payment on the loan you already have. There is no minimum credit score on it.

What if I make too much money for Colorado down payment assistance?

You still have options. The two national programs we offer — the Chenoa Fund and the National Homebuyers Fund — have no income limits at all. Both are FHA loans offering 3.5% or 5% of the purchase price, available to first-time and repeat buyers, with credit minimums of 600 and 580. The assistance is smaller than what CHFA offers, but there is no income ceiling to clear.

Can I get down payment assistance with a credit score under 620?

Not on a CHFA program — 620 is their floor. The national programs go lower: the Chenoa Fund starts at 600 and the National Homebuyers Fund at 580. CHAC sets no minimum of its own and allows manual underwriting, but FHA credit guidelines still apply.

Find Out What You Qualify For

Tell us your county, how many people live in your household, and roughly what you earn. We will tell you which programs you fit and what each one puts toward your purchase — in dollars, not percentages. The first step takes about 2 minutes. No SSN required, and no credit pull.

See What I Qualify For →

Related Resources

• More questions about Colorado down payment assistance
• FHA loan questions answered
• Conventional loan requirements
• Start your application