CHFA Down Payment Assistance in Colorado: Complete 2026 Guide

What is CHFA down payment assistance?

The Colorado Housing and Finance Authority (CHFA) helps moderate-income Colorado households achieve homeownership through fixed-rate first mortgages paired with down payment and closing cost assistance. CHFA does not lend directly — you apply through a CHFA Participating Lender who determines which program fits your income, credit, and buyer status.

For many first-time buyers, the biggest hurdle is saving enough for a down payment plus closing costs. CHFA assistance can reduce or eliminate that upfront burden, making homeownership accessible years sooner than waiting to save 10–20% on your own.

Two types of CHFA down payment help

CHFA offers two main assistance structures. A CHFA DPA Grant provides up to the lesser of $25,000 or 3% of your first mortgage with no repayment required — available on eligible programs like SmartStep Plus. A CHFA DPA Second Mortgage provides up to $25,000 or 4% as a deferred loan with zero monthly payments; repayment is due when you sell, refinance, pay off the first mortgage, or move out.

Even if you have some savings, you can still use CHFA assistance for remaining down payment and closing costs. Higher interest rates may apply when using DPA, so discuss total cost with your lender.

• Grant: up to 3% or $25,000 — no repayment
• Second mortgage: up to 4% or $25,000 — deferred repayment
• FirstGeneration programs: up to $25,000 regardless of loan size
• Minimum $1,000 borrower contribution still required

Which CHFA program is right for you?

CHFA SmartStep and SmartStep Plus work with FHA, VA, or USDA loans and offer the most flexibility — including grant options on Plus. CHFA Preferred and Preferred Plus use conventional financing (FHA Preferred / HFA Advantage) with second-mortgage DPA only. CHFA FirstStep targets first-time buyers and qualified veterans with FHA loans. CHFA FirstGeneration serves buyers whose parents never owned a home, with specialized up-to-$25K assistance.

Your lender compares your income, credit score, desired loan type, and whether you are buying in a targeted area to recommend the best fit. You cannot combine multiple CHFA programs on one purchase.

General CHFA requirements for 2026

All CHFA purchase programs share core requirements: minimum mid-credit score of 620, at least $1,000 personal contribution toward the purchase, completion of CHFA-approved homebuyer education before closing, and household income within county-specific limits. Debt-to-income limits are 50% for FICO 620–659 and 55% for FICO 660+.

Purchase price limits also apply and vary by county, household size, and program. In Northern Colorado, Larimer and Weld counties each have distinct limits — see our Northern Colorado CHFA guide for local numbers.

How to apply for CHFA down payment assistance

Start with homebuyer education — CHFA requires it before closing, and taking it early makes you a stronger buyer. Then contact a CHFA Participating Lender for pre-approval; they handle qualification and origination. Finally, work with a local buyer agent who understands CHFA purchase price limits to find qualifying homes and structure competitive offers.

SAA Homes guides buyers across Fort Collins, Loveland, Windsor, Greeley, and surrounding communities through the home search while your lender manages CHFA program details. We are not a lender and do not originate CHFA loans.

• Complete CHFA-approved homebuyer education
• Get pre-approved with a CHFA Participating Lender
• Define your budget using CHFA income and price limits
• Search for qualifying homes with a local buyer agent
• Close with your lender and agent coordinating program requirements

Specialty CHFA programs launching in 2026

Beyond standard programs, Colorado is expanding CHFA access for educators and first responders. CHFA Schools To Home offers up to 25% down payment assistance for full-time public school employees (launching July 2026). The Colorado Champions Home Loan Program raises income eligibility to 110% of standard limits for peace officers, firefighters, EMTs, and 911 specialists (expected late 2026).

These specialty programs cannot be combined with other CHFA options, but they represent significant new opportunities for public servants who want to live in the communities they serve.