First-Time Buyer Programs
in Colorado

Most CHFA programs define a first-time buyer as someone who has not owned and occupied a primary residence in the past three years, so a previous homeowner who has been renting may still qualify. There are also exceptions for veterans and for buyers purchasing in certain targeted areas, which can allow repeat buyers to participate even if they currently own property elsewhere.

CHFA offers both options depending on the specific program. Grant assistance generally does not need to be repaid, while deferred second mortgages do require repayment when you sell, refinance, or pay off the first mortgage. Understanding which type you are receiving matters for long-term planning, particularly if you expect to move or refinance within a few years of purchasing.

No. CHFA assistance programs are only available through CHFA-approved participating lenders. The first mortgage must be a CHFA loan, not just any FHA loan from any lender. Confirming your lender is an approved CHFA participant before starting the process saves time and avoids having to restart with a different lender later.

CHFA generally requires a minimum credit score, and lenders may apply their own overlays on top of that floor. A score in the mid-600s is often the starting point, but a higher score can open more options and affect how a lender views the rest of your file. Checking your credit report for errors before applying is a practical step that costs nothing and can have a meaningful effect on where your score lands.

Yes. CHFA programs set income limits that vary by county and household size, reflecting differences in local income levels across a geographically diverse state. Buyers in higher-income metros may find their household income exceeds the limit for certain programs, while the same income in a rural county might qualify. Reviewing the specific limits for your target county before assuming eligibility is important.

FHA loans carry both an upfront mortgage insurance premium paid at closing and an annual premium spread across monthly payments. Unlike conventional private mortgage insurance, FHA mortgage insurance generally cannot be canceled by reaching a certain equity threshold if the original down payment was below ten percent. This means the long-term monthly cost of an FHA loan can exceed that of a conventional loan even when the FHA option had a lower upfront cost.

Closing costs typically include lender fees, title insurance, appraisal, prepaid homeowners insurance, and property tax escrow, and they are separate from the down payment. Even when assistance covers the down payment, buyers are usually still responsible for some or all of these costs unless seller concessions or additional program funds address them. Building a clear picture of total cash needed to close, not just the down payment, is one of the most important steps before going under contract.