Programs for First Time Homebuyers in Colorado

Programs for First Time Homebuyers in Colorado

Programs for First Time Homebuyers in Colorado

Explore Colorado’s first-time homebuyer assistance programs to get your new home with a great view.

Colorado is famous for its authentic sights and glorious seasonal transitions. Imagine the autumn leaves becoming the snowy backdrop to your spacious new backyard space. But settling into the picturesque landscapes and natural beauty of the Centennial State can seem unattainable due to cost. While many first-time homebuyers are searching the market, it can be overwhelming to find an affordable home in Colorado right now.

Fortunately, several programs are available that help first-time homebuyers worry less about the financial jump. Whether it’s in the form of low- or zero-interest loans, down payment assistance, or grants to help with closing costs, Colorado offers generous programs to help first-time homebuyers like you secure the home of your dreams.

Who qualifies as a first-time homebuyer in Colorado?

Each state may define the term “first-time homebuyer” differently. If you haven’t owned a home in the last three years, you will qualify as a first-time homebuyer in Colorado.

State Programs for First Time Homebuyers Colorado

Take a look at the following programs available statewide for Coloradans.

CHFA FirstStep and FirstStep Plus Programs

The Colorado Housing and Finance Authority (CHFA) ​​offers two programs exclusively for first-time buyers. Some veterans and individuals purchasing a home in specific areas may also qualify. Borrowers must complete a homebuyer education course before the closing date.

The FirstStep program offers a 30-year fixed-rate FHA 203(b) purchase loan. Once the loan is approved, eligible first-time borrowers can apply for the FirstStep Plus program, which provides down payment assistance in the form of a second mortgage. Credit restrictions and income limits may apply, so check the CHFA website for current eligibility requirements and application details.

CHFA HomeAccess and HomeAccess Plus Programs

The home access program is exclusively for first-time homebuyers and qualified veterans, offering a 30-year fixed-rate FHA 203(b) and USDA-RD purchase loan. Approved borrowers must have a permanent disability or be the custodial parent of a child who has a permanent disability. The home access Plus program includes additional down payment and closing cost assistance opportunities. Credit restrictions and income limits may apply, so check the CHFA website for details.

CHFA SectionEight and SectionEight Plus Programs

The SectionEight program is restricted to first-time homebuyers and qualified veterans receiving Section 8 assistance from an approved Section 8 agency. This program offers 30-year fixed-rate FHA 203(b) and USDA-RD purchase loans to eligible borrowers. In addition, CHFA DPA Grant or CHFA DPA Second Mortgage Home Loans are available for the down payment and closing cost assistance with the SectionEight Plus program. Check the CHFA website for credit restrictions and income limits.

CHAC Down Payment Assistance Program

The Colorado Housing Assistance Corporation (CHAC) also offers financial assistance to first-time homebuyers throughout the state. Its Down Payment Assistance Program provides flexible, low-interest loans for qualified first-time homebuyers with low to moderate incomes. Borrowers must complete a homebuyer education course before closing. Assistance is provided in the form of a second home loan, usually with monthly payments, but start dates may vary. Restrictions and exceptions may apply, so visit the CHAC website for current requirements.

State Programs for Non-First-Time Homebuyers Colorado

While the above programs are strictly available to first-time homebuyers, other state programs help people looking to move from one home they currently own to another.

CHFA SmartStep and SmartStep Plus Programs

CHFA also offers the SmartStep and SmartStep Plus programs for existing homeowners. However, borrowers are still required to complete a homebuyer education course before closing.

The SmartStep program offers 30-year fixed-rate FHA, VA, and USDA-RD purchase loans to eligible borrowers. Like the FirstStep program, approved borrowers can apply for the SmartStep Plus program, which provides down payment assistance in a second mortgage. Credit restrictions and income limits may apply, so check the CHFA website for current eligibility requirements and application details.

CHFA Preferred and Preferred Plus Programs

CHFA’s Preferred and Preferred Plus programs are also not limited to first-time buyers. The Preferred program includes a 30-year fixed-rate Fannie Mae HFA Preferred or Freddie Mac HFA Advantage purchase loan. Borrowers approved for the Preferred program can apply for the SmartStep Plus program, which provides down payment assistance in a second mortgage. Credit restrictions and income limits may apply. Visit the CHFA website for more details.

CHFA Preferred Very Low-Income Program

This shallow income program is not limited to first-time homebuyers but is restricted to low-income borrowers only. The program includes a 30-year fixed-rate Freddie Mac HFA Advantage Purchase Loan with the possibility of down payment and closing cost assistance in a second mortgage. See the current income limitations and credit requirements on the CHFA website.

Homebuyer Programs by Location

In addition to state programs, homebuyer assistance programs are also based in different cities and regions of the state. Many are open to first-time homebuyers as well as regular buyers. See each program for more details.

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The Aurora Homeownership Assistance Program provides affordable housing assistance to low- and moderate-income families in Aurora. This program offers up to $10,000 in financial aid to qualified first-time homebuyers to help cover down payment and closing costs. Properties must be located in the City of Aurora, and the borrower may be subject to credit restrictions and other eligibility requirements. Please visit the official website at the above link to review current income restrictions and application details.

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If you’re looking to settle in Boulder’s beautiful scenery, you can take advantage of one of several financial assistance programs for new or returning buyers with moderate to low incomes. The City of Boulder offers three programs: Permanently Affordable Homes, Down Payment Assistance Grant (Solution Grant), and House to Homeownership: Down Payment Assistance Loan. Each program is limited to specific eligibility criteria. More details can find on the city’s website above.

Commerce City

If you’re looking to move to Commerce City, browse the city’s website for available homebuying incentives. The Commerce City Housing Authority’s Homebuyer Program and similar state partners fund programs that offer down payment and closing cost assistance to new and repeat borrowers. Please see the program website for additional details and eligibility requirements.

Denver

Considering moving to the Mile High City? The Denver Housing Department’s Homeownership Program is available to qualified residents of modest income looking for affordable homes. Financial assistance is available in down payment and closing cost assistance. Denver residents can apply for this option, and homes located within neighboring cities and counties may also be eligible.

The Denver-Aurora Area Housing Development and Community Resources Corporation provides eligible homebuyers, including first-time buyers, $15,000 in down payment assistance on qualified properties through the NeighborhoodLIFT Program. Please refer to the program website for additional requirements and terms of eligibility.

Douglas County

Located midway between two of the largest cities in the state, Denver and Colorado Springs, Douglas County is home to sites like Lone Tree, Castle Rock, Parker, and parts of Aurora, Littleton, and Castle Pines. This area offers the Douglas County Down Payment Assistance Program for low to moderate-income first-time homebuyers. Other restrictions and requirements may apply, so visit the program website for more information.

Eagle County

Eagle County, which encompasses the cities of Avon, Eagle, Gypsum, Minturn, Red Cliff, and Vail, offers financial assistance for first-time and repeat homebuyers. Down payment assistance is provided through several of Eagle County’s homeownership incentives, all listed on the county’s website. These programs are subject to specific requirements and restrictions.

El Paso County (Colorado Springs)

In El Paso County, the “Turnkey Plus” mortgage program offers a partially forgivable down payment assistance loan to individuals and families purchasing a home in El Paso County, including Colorado Springs. There is no first-time homebuyer requirement for this program, but borrowers must complete an approved education course. Income limits and other restrictions may apply, so be sure to visit the official website for more details and to use.

Longmont

Just northeast of Boulder is the city of Longmont. People settling in Boulder County can take advantage of the Boulder County Down Payment Assistance Program, which provides down payment and closing cost assistance to first-time homebuyers. It is available to eligible borrowers whose purchased property is outside the Boulder city limits. Other restrictions may apply, so be sure to visit the program’s website for more information.

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In Pueblo, first-time homebuyers may be interested in applying for the Home Down Payment Assistance Program. This program offers mortgage assistance for affordable housing through the Pueblo Department of Housing and Citizen Services in conjunction with private lenders to help low- and moderate-income individuals and families. This program is available only to eligible first-time homebuyers, and other restrictions may apply. Visit the city’s website for more details and to apply.

Find the Perfect Colorado Home

While buying a home for the first time may seem stressful at first. Hopefully, this list will help you get started on your search. With a bit of research, a little investment of time, and a little budgetary analysis, you can find your perfect residence in Colorado. Picture the stunning scenery outside your window every day, waiting for you to call this beautiful state your new home.

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