Colorado First-Time Home Buyer Grants 2026

For how Colorado compares with other states and with the federal options, see our national guide to first-time home buyer grants and programs.

Colorado Down Payment Assistance Programs Compared (2026)

1 true grant and 6 deferred loans make up the down payment help on CHFA's homebuyer pages and Denver's metroDPA page as of November 3, 2026. Every CHFA option has to be paired with a CHFA first mortgage from a participating lender; CHFA doesn't lend to the public directly.

Sources: CHFA down payment assistance page (opens in a new tab); CHFA FAQ (opens in a new tab); CHFA FirstGeneration (opens in a new tab), HomeAccess (opens in a new tab), Colorado Champions (opens in a new tab) and Schools To Home (opens in a new tab) pages; CHFA program forms and matrices (opens in a new tab); CHFA current MCC holders page (opens in a new tab); Denver's metroDPA page.

Grant or second: you pick one. CHFA's FAQ says borrowers can take either the grant or the second mortgage with a CHFA first mortgage, not both. The lender matrices dated August 3, 2026 describe the second as a "zero-percent silent second" with "no accrued interest," so a $16,000 second is still $16,000 when you sell.

The grant isn't available on every loan. CHFA's program comparison chart (version dated June 2026) lists "Grant or Second" for CHFA SmartStep, its FHA, VA and USDA loan, but "Second only" for CHFA Preferred, its conventional loan, and for FirstStep and FirstGeneration. A buyer who wants the grant is choosing a government-backed loan.

What else CHFA requires. According to CHFA's FAQ, every borrower must put in at least $1,000 of their own money (gifts count), and CHFA's lender chart allows one CHFA-financed property at a time, one living unit, owner-occupied.

CHFA Income and Purchase Price Limits by County (Effective November 2, 2026)

$178,920 is the statewide income limit for CHFA SmartStep, Preferred, HomeAccess, Schools To Home, SectionEight and Colorado HFA1, the same in every county and for every household size, according to the CHFA income limits data marked effective November 2, 2026. Those programs have no purchase price cap; the loan just can't exceed $832,750 or the loan type's own limit. The county figures below apply to FirstStep and FirstGeneration, which do have price caps.

Source: CHFA Home Finance Program Income Limits (opens in a new tab), header "Effective November 2, 2026." Colorado Champions has a separate statewide limit of $196,810. VLIP is CHFA Preferred's Very Low Income Program.

Three things change how these numbers work:

• Which income counts. For SmartStep and Preferred, CHFA counts only the income the lender uses to qualify you for the loan. For FirstStep and FirstGeneration, it counts gross annual income for all borrowers plus any spouse or civil union partner who'll live in the home, per the sheet's footnotes.
• Targeted areas. These are federally designated counties or census tracts where limits run higher and FirstStep doesn't require first-time status. CHFA's FAQ links a targeted area map; ask your lender to check the address.
• A labeling mismatch. CHFA's income limits web page describes the current sheet as being "for locks made on or after June 15, 2026," while the sheet itself says "Effective November 2, 2026." The figures above come from the sheet CHFA was serving on November 3. For the HUD area income tables behind many local programs, see our HUD income limits guide.

Grantsights analysis of CHFA's November 2, 2026 limits sheet shows how uneven the price caps are. Of Colorado's 64 counties, 21 carry the full $832,750 FirstStep price limit outside targeted areas, 19 sit at $692,210, and 16 sit at the lowest tier of $566,350. Only 8 counties have a higher cap in targeted areas than outside them. Because 3% of $832,750 is $24,982.50, the 3% grant can never actually reach its $25,000 cap under CHFA's own loan ceiling, while the 4% second hits $25,000 on any first mortgage of $625,000 or more.

CHFA Programs for Specific Buyers: FirstGeneration, Schools To Home, Champions and HomeAccess

$25,000 is the flat amount CHFA offers first-generation buyers and buyers with a permanent disability, regardless of how big the first mortgage is. For a buyer with a $300,000 loan, that's more than double the 4% second ($12,000).

CHFA FirstGeneration. At least one borrower must have never owned a home, with parents or guardians who never owned one during the buyer's lifetime. People who lived in foster care qualify if they've never owned a home. All borrowers must be first-time buyers (no home in three years), and you sign an affidavit rather than gathering family records. It's an FHA-only loan with county price caps, and CHFA's recapture tax page lists it among the programs that can trigger the federal recapture tax. CHFA says FirstGeneration can be combined with other community second mortgages.

CHFA Schools To Home. For full-time employees of Colorado public schools, districts, charter schools and BOCES. The second mortgage can reach 25% of the first mortgage, at 0% with no payments, but CHFA's July 1, 2026 lender announcement calls the loan and the shared appreciation "a two-part obligation." The share you owe equals the second mortgage divided by the original price, applied to the home's gain. Every borrower also takes CHFA's "Understanding Your Financial Commitment" course.

CHFA Colorado Champions. For peace officers (including corrections, emergency communications, port of entry and wildlife officers), firefighters and EMTs employed and working in Colorado, with income up to $196,810. The second is the lesser of $25,000 or 4%, deferred.

CHFA HomeAccess. For buyers living with a permanent disability, or parents or guardians of someone who is, as defined by the Social Security Administration. It has a $25,000 deferred second and a lower $500 minimum contribution. CHFA's FAQ notes HomeAccess seconds can't be subordinated if you later refinance.

Local Programs in Denver, Aurora, Boulder and the Front Range

$216,000 is the income ceiling Denver's metroDPA page lists for its Front Range program, checked November 3, 2026. City programs change quickly, so check status before planning around one.

Sources: Denver metroDPA page (opens in a new tab); metroDPA income limits (as of June 2026) and denFirstGen limits (as of September 2026) (opens in a new tab); City of Aurora down payment assistance (opens in a new tab); City of Boulder H2O (opens in a new tab) and homeownership programs (opens in a new tab).

Notes on the local options:

• metroDPA's income limit isn't printed the same way everywhere. Denver's page and metroDPA's county sheet say $216,000 (or $216,100 in some counties), while metroDPA's qualifications sheet says "below $210,150." If your income is in between, have the lender confirm. The county sheet also lists a lower 80% of area median cutoff, such as $115,200 in Denver, for extra conventional loan benefits.
• Boulder's H2O payback grows with prices. Boulder's own example: a $90,000 loan with a 15% share of a $200,000 gain means $120,000 due at sale. Boulder's income chart (150% of area median, $225,000 for a family of four) carries no effective date.
• Denver's affordable homes. Denver's Department of Housing Stability also sells income-restricted homes below market, generally to households between 50% and 80% to 120% of area median, and lists the nonprofit Colorado Housing Assistance Corporation (CHAC), whose second-mortgage loans usually require monthly repayment.

Many city and county programs are funded with HUD's HOME money; our HOME Investment Partnerships guide explains how that money reaches local governments.

FHA, VA and USDA Loans in Colorado

3.5% of the purchase price is the smallest down payment an FHA loan allows, per HUD's FHA loans page (opens in a new tab). In Colorado that number matters more than usual: CHFA's grant only comes with its FHA, VA and USDA loans (SmartStep), so most buyers chasing a "Colorado first-time home buyer grant" end up in a government-backed loan.

• FHA. CHFA's 3% grant on an FHA loan covers most, though not all, of a 3.5% down payment, and the 4% second covers all of it with some left for closing costs. FirstStep and FirstGeneration are FHA-only.
• VA. VA's purchase loan page (opens in a new tab) says there's no down payment if the price isn't above the appraised value and no private mortgage insurance, though a one-time funding fee may apply. Colorado veterans can still add CHFA's grant or second to cover closing costs, and CHFA treats qualified veterans as first-time buyers for FirstStep.
• USDA. Rural parts of Colorado qualify for USDA Section 502 loans, and CHFA's SmartStep includes USDA-RD loans. Our USDA housing guide covers how those work.

What CHFA Doesn't Tell You on Its Homebuyer Pages

0 interest rates appear on CHFA's public homebuyer pages; its lender rates page says daily rates go only to participating lenders through HomeConnection or a lender-only email. Grantsights checked the consumer pages against the lender matrices, the comparison chart and the recapture tax page, and five things stand out.

1. "Higher rates apply" is the price of the help. CHFA's FAQ adds that note to both the grant and the second, but no public page says how much higher. Ask a CHFA lender for a quote with the grant, with the second, and with no assistance, then compare monthly payments over the years you expect to stay.
2. The grant is only "free" if the rate math works. The honest version: a 3% grant that comes with a higher rate can cost more over time than bringing your own 3%. Common mistake: comparing only the cash at closing.
3. CHFA will pay your recapture tax back. FirstStep, FirstGeneration and old MCCs can trigger the federal recapture tax if you sell within nine years, at a gain, with income above the federal limit, reported on IRS Form 8828 (opens in a new tab). CHFA's recapture page says you can request reimbursement on CHFA Form 950 by December 31 of the year you paid it. Many buyers never hear about that refund.
4. Refinancing usually means paying the second off. CHFA's FAQ says it will resubordinate the DPA second only once, and only into a refinance through CHFA's own FHA refinance program. Any other refinance means repaying the second in full, and HomeAccess seconds can't be subordinated at all.
5. Schools To Home costs more than its "0%" label suggests. On a $400,000 home with a $100,000 second, the shared percentage is 25%. If the home sells for $500,000, you'd repay the $100,000 plus $25,000 of the gain.

For example, a couple in suburban Colorado Springs (El Paso County) earning $110,000 buying a $400,000 home with an FHA loan would borrow about $386,000 before FHA's financed premium and need a $14,000 down payment plus at least $1,000 of their own money. Specifically, CHFA's 3% grant would be about $11,580 on that base loan, covering roughly 83% of the down payment with nothing to repay. The 4% second would be about $15,440, enough for the full down payment plus about $1,440 toward closing costs, but it's due when they sell or refinance. Because they're under El Paso's $127,800 FirstStep limit and the home is under the $566,730 price cap, they could also use FirstStep if they're first-time buyers, and if either is a first-generation buyer, FirstGeneration would give them a flat $25,000 instead. The lender's financed premium nudges each percentage up slightly, and each option carries its own rate, so ask for all three quotes the same day.

Common Mistakes and Red Flags

$0 is what CHFA, Denver and Aurora charge you to apply for their programs; you apply through a participating lender or the city. The FTC's government grant scams page (opens in a new tab) says "No government agency will ever contact you to demand that you pay to get a grant."

• Red flag: a "Colorado home buyer grant" pitch that wants a fee, a gift card or a wire. CHFA's real grant is arranged by a participating lender at closing, never paid out to you in advance.
• Common mistake: assuming every CHFA program is a grant. Only the 3% option is. A $25,000 FirstGeneration loan is $25,000 owed when you sell, even 20 years later.
• Common mistake: taking the class too early. CHFA certificates last 12 months, and you must be under contract before yours expires. Taking the class during a long search can mean taking it twice, and the online version costs $75 each time.
• People underestimate FirstStep's income test. It counts a spouse's or partner's income even if they aren't on the loan, so a couple who fits SmartStep's $178,920 limit can still be over FirstStep's county cap.
• Red flag: wiring closing funds from an emailed instruction. Call your title company at a number you already have before sending money.

Still renting along the Front Range while you build savings? Our rental assistance programs guide lists rent help that can bridge the gap.

How to Apply for Colorado Down Payment Assistance, Step by Step

6 hours is the average length of CHFA's free in-person homebuyer class, according to the CHFA homebuyer education program, and it's the first thing to schedule. There's no separate application to CHFA; your lender reserves the loan and the assistance together.

1. Check your fit. Compare your income with $178,920 (SmartStep and Preferred) and, if you're a first-time buyer, your county's FirstStep limit in the table above.
2. Find a CHFA participating lender. CHFA lists them on its participating lender page (opens in a new tab). For metroDPA, Denver's page gives a referral contact, and metroDPA uses its own approved lenders.
3. Take the CHFA-approved class. Each borrower takes it individually. Find in-person classes by county, or take the $75 online class and schedule the follow-up call right away. Schools To Home buyers also take the shared appreciation course.
4. Ask for side-by-side quotes: the grant, the second, and no assistance, plus FirstGeneration or FirstStep if you qualify.
5. Bring your $1,000 minimum contribution (or $500 for HomeAccess), from savings or an eligible gift.
6. Get counseling if you're stuck. HUD's housing counselor finder (opens in a new tab) lists approved agencies, and HUD's Colorado page (opens in a new tab) links state resources.

Applying as a household rather than a business works differently, and how to apply for grants as an individual walks through it.

What Happens If Funds Run Out or You're Denied

3 CHFA program pages (FirstGeneration, HomeAccess and Colorado Champions) say outright that their funds aren't limited, which is unusual among state programs. The more likely roadblocks are income limits, credit and local programs closing.

• A city program closes. Aurora's program stopped taking applications; CHFA's statewide options and metroDPA remain listed for Aurora buyers.
• Over the income limit. If you're above FirstStep's county cap, SmartStep's $178,920 may still fit. Above that, metroDPA's roughly $216,000 limit is the next option on the Front Range, and an FHA loan with 3.5% down needs no program at all.
• Denied by underwriting. CHFA defers to the lender's automated approval. A score under 620, or debt above 50% of income with a score below 660, is the usual cause. A HUD-approved counselor can help you fix credit before trying again.
• No credit score at all. CHFA's FAQ says there may be exceptions for borrowers with no score, and its chart allows manual underwriting on FHA, VA and USDA loans. Ask a lender who does manual underwriting.
• Already own a home? SmartStep and Preferred don't need first-time status. Colorado owners whose real need is fixing the house they have can start with home repair grants for low-income homeowners.

Comparing a move across state lines? See our guides for Utah, New Mexico and Texas.

Saving for a Colorado closing while other bills pile up? The Grantsights free eligibility checker sends you to official routes like benefit finders, rent help and 211; it can't give you a grant or down payment money itself.

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Sources

1. CHFA: Down Payment Assistance (opens in a new tab) - grant and second mortgage amounts, repayment events
2. CHFA: Homeownership FAQs (opens in a new tab) - grant repayment, one option per loan, 620 credit minimum, $1,000 minimum contribution, recapture tax, subordination
3. CHFA: Income Limits (opens in a new tab) and CHFA Home Finance Program Income Limits sheet (opens in a new tab) - county income and price limits, effective November 2, 2026
4. CHFA: FirstGeneration (opens in a new tab) - $25,000, first-generation definition, funding statement
5. CHFA: HomeAccess (opens in a new tab) - $25,000, eligibility, $500 contribution
6. CHFA: Colorado Champions (opens in a new tab) - eligible occupations, $196,810 limit
7. CHFA: Schools To Home (opens in a new tab) and Participating Lender Announcement 2026-02 (July 1, 2026) (opens in a new tab) - 25% second and shared appreciation formula
8. CHFA: Programs, Forms and Matrices (opens in a new tab) - SmartStep, Preferred, FirstStep and Schools To Home matrices (effective August 3, 2026) and the program comparison chart (June 2026)
9. CHFA: Loan Rates for participating lenders (opens in a new tab) - rates published to lenders only
10. CHFA: Recapture Tax (opens in a new tab) - conditions and Form 950 reimbursement
11. CHFA: Current MCC Holders (opens in a new tab) - no MCCs issued since 2018
12. CHFA: Homebuyer Education (opens in a new tab) - free in-person class, $75 online, 12-month certificates
13. City and County of Denver: metroDPA (opens in a new tab) and Affordable Home Ownership (opens in a new tab)
14. metroDPA program site (opens in a new tab), income limits sheet (opens in a new tab) and qualifications sheet (opens in a new tab)
15. City of Aurora: Down Payment Assistance (opens in a new tab) - 4% to 10%, closed to applications
16. City of Boulder: H2O (opens in a new tab) and Homeownership Programs (opens in a new tab)
17. HUD: FHA loans (opens in a new tab), HUD Colorado page (opens in a new tab) and HUD housing counselor finder (opens in a new tab)
18. VA: Purchase loan (opens in a new tab)
19. IRS: About Form 8828, Recapture of Federal Mortgage Subsidy (opens in a new tab)
20. FTC: Government grant scams (opens in a new tab)