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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Whether you’re looking for the downtown energy of Denver or hoping for the peace and tranquility of a remote mountain town, Colorado offers plenty of opportunities to spend more time outside. Many have flocked to The Centennial State throughout the pandemic, too: Colorado came in seventh on U-Haul’s list of states with the biggest growth in 2021. Buying a home here isn’t easy, though, especially for first-time homebuyers on a budget. If you’re looking for your first home, the state’s housing finance agency, the , offers a number of programs that can make the dream of owning a home a more affordable reality. Colorado first-time homebuyer loan programs
The Colorado Housing and Finance Authority (CHFA) provides access to fixed-rate mortgages and financial help for both your down payment and closing costs. In general, you could be eligible for a CHFA program if you: Have a credit score of at least 620 (there can be exceptions if you do not have a credit score at all) Don’t exceed the 50 percent debt-to-income (DTI) ratio limit with a FICO of 620 to 659 (55 percent DTI limit with a FICO of 660 or higher) Complete a homebuyer education class Meet income requirements (based on the loan program, the size of your household and the location of the home) Can contribute at least $1,000 to the purchase Fulfill your mortgage lender’s loan requirements CHFA has a number of programs for homebuyers, including: CHFA FirstStep – CHFA’s FirstStep and FirstStep Plus programs provide a 30-year fixed-rate FHA loan to first-time homebuyers, veterans or any buyer purchasing in a , along with down payment assistance if needed. In addition to meeting CHFA general loan requirements, the home you’re buying and your income must be within the program’s , respectively. CHFA HomeAccess – CHFA’s HomeAccess and HomeAccess Plus programs can provide a 30-year fixed-rate FHA or USDA loan to a first-time homebuyer or veteran who is either living with a permanent disability or is the custodial parent of a child living with a permanent disability. Like other CHFA programs, there are , but if you’re eligible, you can also obtain up to $25,000 in down payment assistance with your loan. CHFA SectionEight – CHFA’s SectionEight and SectionEight Plus Homeownership programs can provide a 30-year fixed-rate FHA or USDA loan to a first-time homebuyer or veteran who’s also receiving Section 8 assistance from a Section 8 agency. You can combine this program with CHFA down payment assistance, but there’s a borrower income limit: $130,200. CHFA SmartStep – CHFA’s SmartStep and SmartStep Plus programs provide 30-year fixed-rate FHA, VA or USDA loans and CHFA down payment assistance. Like the SectionEight program, the income limit is $130,200. – CHFA also offers Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans for up to 97 percent financing, including an Advantage loan for low-income borrowers (called the Very-Low Income Program, or VLIP). These loans can also be paired with CHFA down payment assistance. Colorado down payment assistance
CHFA offers two types of : a grant and a second mortgage. With the CHFA down payment assistance grant, you can receive funds for up to 3 percent of your first mortgage (for example, $9,000 on a $300,000 mortgage). The grant doesn’t have to be repaid. It can only be combined with a SectionEight or SmartStep first mortgage, however. CHFA’s second mortgage provides assistance funds for up to 4 percent of your first mortgage ($12,000 on a $300,000 mortgage). You don’t have to repay this assistance until you pay off or refinance the first mortgage or sell your home. This option can be paired with a FirstStep, HomeAccess, Preferred, SectionEight or SmartStep first mortgage. Note that you can only use one of these options, not both, in conjunction with your first mortgage. Other first-time homebuyer loan programs
The CHFA isn’t the only option for first-time homebuyers in Colorado. You can also explore options from the Colorado Housing Assistance Corporation, which offers low-interest loans for low- and moderate-income borrowers to help cover the down payment and closing costs. These loans are second mortgages and typically require monthly payments. If your annual income is less than $150,000 and you’re buying somewhere on the Front Range, you might be eligible for the metroDPA program, which offers up to 6 percent of the purchase price in the form of a three-year, forgivable second mortgage. You’ll need a credit score of 640 to qualify. As you shop around for a mortgage, consider also looking into low- or no-down payment loans, like FHA, VA or USDA mortgages, or a Fannie Mae or Freddie Mac 3-percent down conventional loan. Depending on your profession, you might also qualify for the , which has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price. Explore to learn more. Get started
As you compare different loan programs and assistance options, keep an eye on the . Be sure to compare loan options from a variety of mortgage lenders, and if you see an attractive rate, . If you’re ready to buy your first home and are interested in a Colorado Housing and Finance Authority program, register for an . Once you have your certificate of completion, browse different lenders through the agency’s . With additional reporting by David McMillin First-time homebuyer programs in nearby states
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SHARE: Ellen Chang is a former contributor for Bankrate. Chang focused her articles on mortgages, home buying and real estate. Her byline has appeared in national business publications, including CBS News, Yahoo Finance and MSN Money. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Related Articles