CHFA Down Payment Assistance Colorado

CHFA (Colorado Housing and Finance Authority) offers grants and deferred second mortgage loans to help eligible homebuyers with down payment and closing costs. Assistance is paired with a CHFA first mortgage through a participating lender — up to $25,000 or 3–4% of the loan amount depending on the program.

Not always. CHFA SmartStep and Preferred programs are available to repeat buyers. FirstStep requires first-time buyer status (or qualified veteran status) unless you purchase in a CHFA targeted area, where repeat buyers may also qualify with higher income limits.

Most programs offer up to the lesser of $25,000 or 3% (grant) or 4% (second mortgage) of your first mortgage. First-generation and certain disability programs may access up to $25,000 regardless of loan size. Your lender confirms exact amounts.

A minimum mid-credit score of 620 is required for most CHFA programs. Some FHA-based programs allow borrowers with no credit score. Lenders may have additional overlays.

CHFA offers both. Grants (up to 3% or $25,000) require no repayment but are limited to certain programs like SmartStep Plus. Second mortgage assistance (up to 4% or $25,000) has no monthly payments but must be repaid when you sell, refinance, pay off the first mortgage, or move out.

Yes. CHFA programs are available statewide, including Larimer County (Fort Collins, Loveland) and Weld County (Greeley, Windsor). Income and purchase price limits vary by county, household size, and whether the property is in a targeted area.

They answer different needs. FHA is a federal mortgage insurance program (3.5% minimum down payment) that lenders use for CHFA first mortgages too. CHFA is Colorado's state housing authority — it pairs a first mortgage (often FHA, VA, USDA, or conventional) with down payment assistance of up to $25,000 or 3–4% of the loan. Buyers who want the lowest upfront cash often combine an FHA-backed CHFA loan with CHFA down payment assistance. Whether CHFA or FHA alone is better depends on your credit, income, and purchase price — a CHFA participating lender can compare both options for you.

Yes. CHFA DPA funds can be used toward down payment, closing costs, prepaids, and in some cases principal reduction — depending on the program and lender approval.

CHFA FirstGeneration and FirstGeneration Plus are FHA-only first mortgage programs for first-generation homebuyers - buyers who have never owned a home and whose parents or legal guardians have never owned one. The paired down payment assistance second mortgage offers up to $25,000 regardless of the first mortgage amount, usable toward down payment, closing costs, prepaids, or principal reduction. Standard CHFA requirements still apply: 620 minimum credit score, $1,000 minimum borrower contribution, homebuyer education, and county income and purchase price limits.

Yes. CHFA disability-focused assistance follows the same deferred second-mortgage structure as other CHFA DPA options - no monthly payments, repaid only when you sell, refinance, pay off the mortgage, or move out - and may reach up to $25,000 regardless of loan size. Program guidelines are updated periodically, so a CHFA participating lender confirms current eligibility and amounts for your situation. SAA Homes coordinates your Northern Colorado home search with whichever CHFA program your lender approves.

CHFA income limits are set by county, household size, and whether the property is in a designated targeted area. For reference, mid-2026 non-targeted ranges are approximately $130,000-$156,000+ in Larimer County (Fort Collins, Loveland, Wellington, Timnath) and approximately $153,600-$179,200 in Weld County (Greeley, Windsor, Eaton, Milliken, La Salle, Mead), with higher limits in targeted areas. Purchase price caps also apply by county. CHFA updates these limits periodically - always confirm current figures through the official CHFA income limits resource or a participating lender before you shop.

Every CHFA loan - including all down payment assistance options on this page - is originated through a CHFA participating lender; you cannot apply directly through CHFA. CHFA publishes the official lender list at chfainfo.com under Participating Lenders. Interview two or three lenders, ask which CHFA program fits your income and credit profile, and get pre-approved before serious house hunting. SAA Homes works alongside Northern Colorado CHFA lenders regularly and can help you time your search around pre-approval. Call (970) 999-1407 to get started.

Start by contacting a CHFA Participating Lender — not CHFA directly. Complete homebuyer education, get pre-approved, then work with a REALTOR® to find a home within program limits. SAA Homes can guide your Northern Colorado search while your lender handles CHFA program details.

The main tradeoffs are the mortgage rate and the repayment terms. CHFA first mortgages can carry a slightly higher interest rate than a conventional loan without assistance, and the DPA second mortgage must be repaid when you sell, refinance, pay off the first mortgage, or move out. CHFA income and purchase price limits also narrow your home search, and every CHFA loan requires approved homebuyer education plus a $1,000 minimum borrower contribution. For most buyers the math still works — up to $25,000 in assistance usually outweighs a modest rate premium, especially for first-time buyers with limited savings. Your CHFA participating lender provides a full cost comparison before you commit.