Most first-time homebuyers in Colorado leave money on the table. Not because they don't qualify for down payment assistance, but because nobody tells them it exists.
Here's the reality: Colorado has some of the most generous first-time homebuyer programs in the country, including grants up to $25,000 that never need to be repaid. Yet the majority of eligible buyers never apply because the system isn't designed to inform you. It's designed to move transactions.
That changes today. This guide breaks down every major Colorado homebuyer assistance program, who qualifies, and exactly how to access them in 2026.
Colorado Down Payment Assistance Programs at a Glance
Before diving into details, here's what's available:
- CHFA Down Payment Grant: Up to $25,000 or 3% of your mortgage (no repayment required)
- CHFA Second Mortgage: Up to $25,000 or 4% of your mortgage (deferred repayment)
- CHFA HomeAccess: Up to $25,000 for buyers with disabilities
- NeighborhoodLIFT: $15,000 for Denver metro county buyers
- CHAC Programs: Loans and education for buyers at 80% AMI or below
Combined with federal programs like FHA loans (3.5% down) and conventional options (3% down), many Colorado buyers can get into a home with less than $5,000 out of pocket.
CHFA Programs: Your Primary Resource
The Colorado Housing and Finance Authority (CHFA) is the backbone of homebuyer assistance in Colorado. They offer multiple programs that can be combined with down payment help:
What is CHFA and how does it work?
CHFA is a state agency that provides below-market mortgage rates and down payment assistance to income-qualified buyers. They don't lend directly. Instead, you work with a CHFA-approved lender who originates the loan using CHFA's programs and funding.
Every CHFA program requires completing an approved homebuyer education course (about $75 and available online) and meeting income limits based on your household size and county.
How much can I get from CHFA down payment assistance?
CHFA offers two assistance options:
- Grant Option: Up to the lesser of $25,000 or 3% of your first mortgage. On a $400,000 loan, that's $12,000 you never repay.
- Second Mortgage Option: Up to the lesser of $25,000 or 4% of your first mortgage. On a $400,000 loan, that's $16,000 with deferred repayment (due when you sell, refinance, or pay off the mortgage).
The trade-off: Both options come with slightly higher interest rates on your first mortgage. Run the numbers. For most buyers, accepting a rate 0.25% higher in exchange for $12,000 in free money is an obvious win.
What are the CHFA loan programs?
CHFA FirstStep and FirstStep Plus: 30-year fixed-rate FHA loans with optional down payment assistance. Minimum 620 credit score (some lenders accept 580). Perfect for buyers with lower credit or smaller savings.
CHFA Preferred and Preferred Plus: 30-year fixed-rate conventional loans with optional 4% down payment assistance. Minimum 620 credit score. Requires only $1,000 borrower contribution, which can come from a gift. Better for buyers with stronger credit who want to avoid FHA mortgage insurance.
CHFA HomeAccess: Specifically for buyers living with a permanent disability or parenting a dependent with a permanent disability. Offers up to $25,000 in assistance regardless of your mortgage amount. This is one of the most generous programs available anywhere.
Metro Denver: NeighborhoodLIFT Program
If you're buying in Adams, Arapahoe, Denver, Douglas, or Jefferson County, the NeighborhoodLIFT program through CRHDC offers an additional $15,000 in down payment assistance.
Who qualifies for NeighborhoodLIFT?
NeighborhoodLIFT has more flexible requirements than CHFA:
- Not limited to first-time buyers
- Higher income limits than most programs
- Preferential help for first responders, teachers, and military members
- Must purchase in an eligible Denver metro county
The catch: Funds are limited and distributed on a first-come, first-served basis. When the program opens, it can exhaust quickly.
CHAC: Colorado Housing Assistance Corporation
CHAC provides down payment loans (not grants) plus extensive homebuyer education and counseling. They're especially valuable if you need help preparing for homeownership, not just paying for it.
What does CHAC offer?
- Down payment loans recorded as second mortgages (repayment required, often with monthly payments)
- Education courses through eHomeAmerica and Framework ($75 per person, online, Spanish available)
- One-on-one counseling to help you understand your options
To qualify, your household income must be at or below 80% of the area median income (100% in Arvada). You'll also need a minimum $1,000 personal contribution. Contact them at (303) 572-9445 or toll-free (866) 377-7835.
5 Steps to Access Colorado Homebuyer Assistance
Here's exactly how to move forward:
- Check income limits: Visit chfainfo.com and use their eligibility calculator. Limits vary by county and household size, but they're more generous than you'd expect.
- Complete homebuyer education: Take a CHFA-approved course before applying. This is required for most programs and takes a few hours online. Cost is typically $75.
- Find a CHFA-approved lender: Not every lender offers CHFA programs. Work with one who specializes in them and can explain your options clearly.
- Get pre-approved with assistance factored in: Your lender should run scenarios showing your buying power with and without assistance. Know exactly what you can afford.
- Apply before you need it: Some programs have limited funding. Don't wait until you've found a house to start the process.
The Blue Pebble Approach
Here's something most agents won't tell you: down payment assistance programs require more paperwork and coordination. Some agents avoid mentioning them because it's easier to work with cash buyers or conventional financing.
We take the opposite approach. If you qualify for assistance, you should know about it. If it makes sense for your situation, we'll help you navigate it. That might mean a slightly longer process, but it also might mean $15,000-$25,000 in your pocket instead of someone else's.
That's what it means to actually serve you instead of just processing a transaction.
What's the catch with down payment assistance?
Let's be honest about the trade-offs:
- Higher interest rates: CHFA loans typically run 0.125% to 0.5% higher than market rates. On a $400,000 mortgage, that's $50-$165 more per month.
- Income and purchase price limits: You must be at or below area median income levels, and the home price must be within CHFA's limits (varies by county, but generous in most areas).
- Primary residence only: These programs are for the home you'll live in, not investment properties.
- Repayment triggers: Second mortgage assistance must be repaid if you sell, refinance, or convert the property to a rental.
For most first-time buyers, accepting a slightly higher rate in exchange for $12,000+ in grants is a clear win. But run the numbers with your lender.
Can I combine multiple assistance programs?
In some cases, yes. You might use CHFA's mortgage program with their grant assistance AND qualify for NeighborhoodLIFT's $15,000. However, stacking programs adds complexity and each has its own requirements.
Work with a lender experienced in layering these programs. A good lender will map out every combination you qualify for and show you the true cost of each.
Key Takeaways
- Colorado offers up to $25,000 in down payment grants through CHFA that never need to be repaid.
- CHFA second mortgage assistance adds another 4% of your loan with deferred repayment until you sell or refinance.
- Denver metro buyers in five counties can access an additional $15,000 through NeighborhoodLIFT.
- Most programs require homebuyer education ($75 online) and have income limits based on household size.
- The trade-off is a slightly higher mortgage rate, typically 0.125%-0.5% above market, but the math usually favors taking the assistance.
- Many eligible buyers never apply because agents and lenders don't mention these programs.
- Start the process before you find a house. Some programs have limited funding that runs out.