Colorado First-Time Home Buyer | 2025 Programs and Grants

What to know about buying a house in Colorado

Buying your first home in Colorado is exciting — but becoming a homeowner in the Centennial State can be a little intimidating, too.

The good news is that Colorado first-time home buyers have access to plenty of support throughout the home buying process. That ranges from advice and home buyer education programs to cold hard cash in the form of down payment and closing cost assistance.

Explore your options to see what you qualify for.

In this article (Skip to...)

• CO home buyer programs
• First-time buyer grants
• CO home buyer key stats
• Home loan options
• Buying in Colorado’s cities
• Resources
• CO mortgage rates

Colorado first-time home buyer assistance programs

There are a variety of statewide and local programs to help first-time home buyers in Colorado make an affordable home purchase.

Colorado Housing and Finance Authority

The Colorado Housing and Finance Authority (CHFA) operates statewide. It provides first-time home buyer programs, including special mortgages, education, and down payment assistance.

CHFA FirstStep and FirstStep Plus

The CHFA FirstStep and FirstStep Plus programs offer 30-year fixed-rate mortgages in the form of an FHA loan with options for down payment assistance.

You’ll normally need a credit score of 620, though you may find a CHFA-approved lender that will accept 580. You also have to have a low or moderate income for your area.

CHFA Preferred and Preferred Plus

First-timers who want to finance a home using a conventional loan may have a lot to like about this CHFA program. The CHFA Preferred is a 30-year fixed-rate loan with a minimum borrower contribution of $1,000 that can be covered by a financial gift.

What’s more, the CHFA Preferred Plus offers a second mortgage for up to 4% of the first mortgage amount. You can apply it toward a down payment, closing costs, prepaids, and/or principal reductions.

To qualify, you’ll need a minimum credit score of 620 and also meet income and purchase price limits. You’ll also need to use a participating lender and complete a CHFA-approved home buyer education course.

CHFA HomeAccess and HomeAccess Plus

The CHFA HomeAccess program provides a 30-year fixed-rate mortgage to first-time buyers and qualified veterans who are either living with a permanent disability or who are the parent or guardian of a dependent with a permanent disability.

CHFA also provides an optional $25,000 CHFA HomeAccess second mortgage loan for a down payment and closing cost assistance in conjunction with the CHFA HomeAccess program.

You’ll need to meet the standard requirements for all CHFA programs, including credit score, home buyer education, and purchase price and income limits. The program’s homeownership page has all the info.

Colorado Housing Assistance Corporation

Another official statewide body is the Colorado Housing Assistance Corporation⁴ (CHAC). This organization provides all sorts of advice, education, and assistance to any Colorado first-time home buyer who asks.

In addition to down payment assistance, CHAC offers education courses and counseling.

Its courses come in two flavors: eHomeAmerica and Framework. Both cost $75 per person; are currently available online; and most elements have versions in Spanish.

To qualify for assistance from CHAC, you will need to have a household income that’s no higher than 80% of the area median income (AMI) where you want to buy. However, that can be 100% in Arvada.

You can call (303) 572-9445 or toll-free (866) 377-7835 to see if you’re eligible.

Community Resources and Housing Development Corporation

Besides CHAC, you may also be able to get down payment assistance up to $15,000 from the Community Resources and Housing Development Corporation (CRHDC)⁵ NeighborhoodLIFT program. This is available to buyers in Adams, Arapahoe, Denver, Douglas, and Jefferson Counties.

NeighborhoodLIFT offers home buyer education programs as well as preferential help for first responders, military service members, and teachers. Assistance is not limited to first-time home buyers and income caps are less restrictive for those who qualify.

Colorado first-time home buyer grants

Down payment assistance programs (DPAs) can provide grants and loans to help buyers cover their out-of-pocket expenses. That includes the down payment and closing costs. These programs are often meant to help low-income home buyers, and many have income caps based on household size.

DPA programs and eligibility requirements vary by area. Check with your mortgage lender or real estate agent to see what’s available locally.

CHFA

CHFA down payment assistance grants provide up to 3% of your mortgage amount as a grant, which is money that never has to be repaid.

So, for example, if you’re borrowing $400,000, you might receive up to $12,000 toward your down payment and/or upfront fees.

If that’s not enough, you can also receive up to 4% of your first mortgage amount. But this is in the form of a second mortgage loan rather than a grant.

You’d have to repay that loan in full when you sell, refinance, or finally pay off your first mortgage. Other actions may also trigger repayment in full. Still, you don’t have to make any monthly payments in the meantime.

CHAC

CHAC doesn’t seem to offer grants, only loans. And it doesn’t specify the maximum amount it will lend home buyers, nor the interest rate it charges. But its website does say:

“The loan is recorded as a second mortgage (lien) on the property being purchased. All of the loans require repayment, usually with monthly payments, although the start date of those payments may vary.”

It adds, “All borrowers are required to have a minimum contribution of $1,000 (minimum contribution for the disability program is $750.00) to the transaction that cannot be a gift. Exceptions may apply.”

NeighborhoodLIFT

The NeighborhoodLIFT program can provide $15,000 of down payment assistance on qualified properties. Remember, that’s only in Adams, Arapahoe, Denver, Douglas or Jefferson County.

You can see the income limits and a map showing the areas covered. Eligible properties include a single-family detached home, townhouse, condominium, 1-4 unit property, or planned unit development (PUD).

CHFA, CHAC, and NeighborhoodLIFT all require applicants to take a home buyer education class. But most first-time home buyers in Colorado or elsewhere should welcome all the knowledge they can absorb.

Colorado home buyer key stats

The median home price in Colorado was $640,700 in October 2024, according to Redfin. That increased 3.1% year-over-year.

Home prices in the state are outpacing the national average. So there’s plenty of support for a first-time home buyer in Colorado.

Colorado home buyer stats

Down payment amounts are based on the state's most recently available average home sale price. “Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620.

If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the US Department of Agriculture), you may not need any down payment at all.

First-time home buyer loan programs in Colorado

If you’re a first-time buyer in Colorado with a 20% down payment, you can get a conventional loan — likely with a low-interest rate and no private mortgage insurance (PMI).

Putting 20% down will keep your monthly mortgage payments low. It might also give you an edge in competitive housing markets like Denver or Boulder.

However, few first-time borrowers have saved that much. The good news is that there’s a wide range of mortgage loan options that can help buyers get into a new house with low or even no down payment.

Low and no down payment mortgage loan options

• Conventional 97: Backed by Freddie Mac or Fannie Mae. 3% down payment and 620 minimum credit score. You can usually stop paying mortgage insurance after a few years
• FHA loan: Backed by the Federal Housing Administration. 3.5% down and a 580 minimum credit score. You’re on the hook for mortgage insurance premiums (MIP) until you refinance to a different type of mortgage, move, or pay off your loan
• VA loan: Only for veterans and active-duty service members. A zero down payment is required. The minimum credit score varies by lender but is often 620. No ongoing mortgage insurance after closing. These are arguably the best mortgages available, so check your eligibility if you have a military service history
• USDA loan: For those on low-to-moderate incomes buying in designated rural areas. A zero down payment is required. Credit score requirements vary by lender but often 640. Low mortgage insurance rates
• CHAC and CFHA mortgage loans: Assisted mortgage programs offered statewide and locally. More info below

Note that government loan programs (including FHA, VA, and USDA home loans) require you to buy a primary residence. That means you can’t use these loans for a vacation home or investment property.

In addition, most programs let you use gifted money or down payment assistance (DPA) to cover your down payment and closing costs. Depending on the mortgage loan you choose, you could potentially get into your new house with minimal cash out of pocket.

If you’re unsure which program to choose for your first mortgage, your lender can help you find the right match based on your finances and home buying goals.

Buying a home in Colorado’s major cities

Buying a home in or around one of Colorado’s major cities can be a little more challenging than buying in a suburb or rural area. So you’ll want to know what to expect.

Denver first-time home buyers

The median listing price in Denver was $579,500 in October 2024. That fell 3.4% from a year earlier, according to Realtor.com.

If you want to buy a home at that price, your down payment might fall between:

• $17,385 for a 3% down payment
• $115,900 for a 20% down payment

Denver’s Department of Housing Stability (HOST) offers down payment assistance of up to 5% of your mortgage loan amount.

The metroDPA⁷ is a forgivable loan with no interest, provided you stay in the home for three years. However, there is little information about what happens if you sell or refinance before then. So speak with a representative in person by calling 720-673-3948 for more information.

Colorado Springs first-time home buyers

The median listing price in Colorado Springs was $465,000 in October 2024. That stayed flat year-over-year, according to Realtor.com.

If you want to buy a home at that price, your down payment options might be:

• $13,950 for a 3% down payment
• $93,000 for a 20% down payment

Those buying in Colorado Springs may be in line for the El Paso County Turnkey Plus mortgage program. That offers “soft loans,” with a 0% interest rate and no monthly payments. And you can borrow up to 5% of your new mortgage’s value.

Half your DPA loan is forgiven over the first five years of your mortgage. But the other half remains repayable for the full 30 years and is only forgiven when you make your last payment on your mortgage.

Meanwhile, if you sell, refinance, or trigger other conditions, you’ll have to repay your loan balance in full at that time.

Aurora first-time home buyers

The median listing price in Aurora was $479,500 in October 2024. That edged down 3.9% year-over-year, according to Realtor.com.

If you buy a home at that price, your down payment options range between:

• $14,385 for a 3% down payment
• $95,900 for a 20% down payment

Aurora’s Home Ownership Assistance Program (HOAP) offers loans of up to $10,000 or the minimum down payment required for your mortgage, whichever is less. And you must chip in at least 1% of the home’s purchase price from your own funds.

This is another “silent” loan, meaning you don’t make monthly payments or pay interest. However, none of it is forgivable. And you have to pay back the entire amount when you sell the home, when it is no longer your primary residence, or when you refinance with cash out.

Where to find home buying help in Colorado

All the organizations we’ve listed above should provide advice freely to any first-time home buyer in Colorado.

In addition to our selection, the US Department of Housing and Urban Development (HUD) provides a list of city- and county-specific first-time home buyer programs across Colorado which you can see here.

Colorado first-time home buyer resources by county

• Adams County Housing Authority
• Arapahoe County
• Boulder County
• Cheyenne, Elbert, Kit Carson and Lincoln counties
• Delta Housing Authority
• Douglas County Housing Partnership
• Durango
• Eagle County Housing
• El Paso County
• Grand County Housing Authority
• Logan, Morgan, Phillips, Sedgewick, Yuma and Washington counties
• Weld County

Colorado first-time home buyer resources by city

• Aurora: Home Ownership Assistance Program
• Boulder: Home Ownership Programs
• Commerce City: Commerce City Housing Authority
• Denver: Del Norte’s Homeownership Program
• Denver: NEWSED Community Development Corporation
• Fort Collins: Home Buyer Assistance Program
• Greeley: High Plains Housing Development Corp.
• Longmont: Down Payment Assistance Program
• Pueblo: Housing Department and Colorado Bluesky Enterprises
• Pueblo: Neighbor Works Southern Colorado
• Wheat Ridge: WRHA Home Ownership Program

Statewide Colorado first-time home buyer resources

• Colorado Housing Enterprise
• Colorado Housing Assistance Corporation (CHAC)
• Colorado Housing and Finance Authority (CHFA)
• Home Buyer Workshop Class Schedule
• U.S. Department of Agriculture Rural Housing

What are today’s mortgage rates in Colorado?

You can see current mortgage rates here.

When you’re ready to start the home buying process, experiment with a mortgage calculator to see how down payment and interest rates will affect your monthly payment. Then make sure you get personalized rate quotes from at least three to five mortgage lenders.

Don’t just look at advertised rates online. Actually apply for preapproval and compare the interest rates and fees you’re offered. Because that’s the only way to know you’re getting the best deal possible on your new home loan.

¹Source: Redfin Colorado Housing Market report

²Source: Experian.com study of 2021 and 2020 data

³Based on a review of the state's available DPA grants at the time this was written

⁴Colorado Housing Assistance Corporation (CHAC)

⁵Community Resources and Housing Development Corporation (CRHDC)

⁶metroDPA