Key Takeaways
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Colorado homebuyers can access down payment assistance through CHFA, MetroDPA, and CHAC in 2025.
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CHFA SmartStep offers a non-repayable grant, making it ideal for those who qualify under income limits.
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MetroDPA provides 0% interest loans with no monthly payments, ideal for buyers in Front Range communities.
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Conventional loan options like CHFA Preferred help buyers avoid long-term PMI, saving thousands over time.
If you’re buying your first home in Colorado in 2025, you’re likely facing rising home prices and steep down payment requirements. Whether you’re eyeing Denver’s growing neighborhoods or seeking a quieter life near the Rockies, the cost of homeownership can feel out of reach. Fortunately, several Colorado first-time homebuyer programs offer financial help with down payment assistance, closing costs, and low-interest loans.
Colorado’s Housing Market Outlook in 2025
The housing market remains competitive statewide, making homebuyer assistance programs more crucial than ever. Here’s a snapshot of current conditions:
| Metric | Value (2025 Estimate) |
| Median Home Price | $600,000+ |
| Typical Down Payment | $104,000 |
| Most Affordable Counties | Baca, Bent, Crowley, Kiowa, Otero |
With housing costs this high, securing financial assistance could significantly improve your buying power.
CHFA First-Time Homebuyer Loan Programs
The Colorado Housing and Finance Authority (CHFA) provides several affordable loan options tailored to first-time buyers, veterans, and those purchasing in targeted areas.
CHFA FirstStep & FirstStep Plus
These programs offer 30-year fixed-rate FHA loans with optional down payment assistance.
| Feature | Details |
| Eligible Borrowers | First-time buyers, veterans, targeted areas |
| Credit Requirements | 620+ or no score |
| Buyer Contribution | $1,000 minimum |
| Assistance | Optional second mortgage |
| Best For | Buyers meeting FHA criteria who want stable payments |
CHFA SmartStep & SmartStep Plus
SmartStep expands loan access to FHA, VA, and USDA mortgages, with a non-repayable down payment grant option.
| Key Features | Details |
| Grant Option | Up to $25,000, no repayment required |
| Income Cap | $162,960 |
| Debt-to-Income | Up to 55% allowed |
| Purchase Price Limits | None |
| Best For | Buyers seeking maximum flexibility and no purchase price cap |
CHFA Preferred & Preferred Plus
This program uses conventional loans, which allow private mortgage insurance (PMI) to be removed once 20% equity is reached.
| Benefit | Explanation |
| PMI Removal | Possible with 20% equity |
| Property Types | Includes single-family homes and ADUs |
| Purchase Price Limits | None |
| Buyer Contribution | $1,000 minimum |
| Best For | Buyers who want long-term cost savings on insurance premiums |
CHFA SectionEight & SectionEight Plus
Tailored for buyers receiving Section 8 housing assistance, this option supports FHA or USDA financing with lower contribution requirements.
| Highlights | Details |
| Contribution | $750 or $500 (ACH auto-pay) |
| Loan Types | FHA or USDA only |
| Drawbacks | Manual underwriting, no 203(k) loans |
| Best For | Section 8 recipients needing low upfront costs |
CHFA Down Payment Assistance Options
CHFA offers two primary down payment assistance types:
| Type | Amount | Repayment |
| Second Mortgage | Up to $25,000 or 4% of first mortgage | Repaid upon sale, refinance, or payoff |
| Grant | Up to $25,000 or 3% of purchase price | No repayment required (SmartStep or SectionEight only) |
Note: Grant options usually come with slightly higher mortgage rates.
Additional Colorado Homebuyer Assistance Programs
MetroDPA Down Payment Assistance
Offered in the Front Range region, MetroDPA provides 0% interest second mortgages with no monthly payments.
| Eligibility | Requirements |
| Credit Score | 620–640 minimum |
| Income Cap | $195,600 |
| Purchase Area | Participating cities/counties |
| Best For | Buyers purchasing in Front Range communities needing flexible loan options |
Colorado Housing Assistance Corporation (CHAC)
CHAC provides loans between $5,000 and $12,000 for down payments and closing costs.
| Feature | Details |
| Interest Rate | 3–5% (may be deferred 5 years) |
| Special Terms | Available for disabled borrowers |
| Fees | Additional charges may apply |
| Best For | Low- to moderate-income buyers needing small loan assistance |
National First-Time Homebuyer Programs Available in Colorado
Alongside Colorado-specific programs, buyers may also qualify for:
- FHA Loans – 3.5% down with a 580+ credit score
- VA Loans – Zero down payment for military borrowers
- USDA Loans – 100% financing in rural areas
- Good Neighbor Next Door – 50% off HUD homes for teachers, police, and firefighters
How to Prepare to Buy a Home in Colorado
Before applying for first-time homebuyer assistance in Colorado:
| Step | Why It Matters |
| Compare Lenders | Get the best interest rates and service |
| Check Your Credit | Higher scores unlock better terms |
| Review Local Prices | Understand what you can afford |
| Estimate Insurance | Add monthly homeowners insurance into your budget |
| Complete Homebuyer Education | Often required for assistance programs |
Bottom Line
Buying your first home in Colorado can feel overwhelming, especially in today’s competitive market. Fortunately, programs like CHFA, MetroDPA, and CHAC can help reduce upfront costs and make homeownership more achievable. These resources are designed to support first-time buyers across the state, whether you’re settling in Denver or a more rural community. If you’re ready to take the next step, reach out to us today for personalized mortgage assistance and guidance on which first-time homebuyer program is best for you.
FAQs: Colorado Homebuyer Programs
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