Buying your first home in Colorado usually comes down to two decisions: which low down payment loan fits you, and which down payment assistance program can cover part of the cash you need at closing. This guide walks through both for 2026, with the current CHFA and Denver metroDPA rules, the loan limits across the Denver metro and the mountains, and the steps from preapproval to keys.
Quick answer
Most Colorado first time buyers pair a low down payment loan (FHA at 3.5%, conventional at 3%, or VA and USDA at 0%) with down payment assistance. CHFA offers a grant of up to 3% of the loan with its SmartStep program, or a 0% second mortgage of up to 4% (capped at $25,000) that is repaid when you sell or refinance. Denver’s metroDPA offers a similar deferred second across the Front Range. Plan on a credit score of at least 620 to 640, a homebuyer education class and household income under the program limit. In the Denver metro, the 2026 conforming and FHA loan limit for a single family home is $862,500.
How much do you need to put down on your first home in Colorado?
Often far less than 20%. Every major loan program has a low down payment option, and the right one depends on your credit, your service history and where you are buying.
| Loan type | Minimum down payment | Best fit |
|---|---|---|
| FHA | 3.5% with a credit score of 580 or higher | Buyers rebuilding credit or with higher debt to income ratios |
| Conventional | 3% for first time buyers and income based programs | Buyers with good credit who want mortgage insurance that can be removed later |
| VA | 0% | Eligible veterans, service members and surviving spouses |
| USDA | 0% | Buyers in eligible rural areas who meet the income limits |
On a $425,000 home, 3.5% down is $14,875 and 3% down is $12,750. Closing costs come on top of that, which is where down payment assistance and seller credits make the biggest difference. See our guides to VA home loans and USDA loans if you may qualify for zero down.
What down payment assistance is available in Colorado?
The two programs Denver area buyers use most are run by the Colorado Housing and Finance Authority (CHFA) and by the City and County of Denver.
CHFA loan programs
- SmartStep: FHA, VA or USDA loans. You do not need to be a first time buyer, and SmartStep is the CHFA program that pairs with the down payment assistance grant.
- Preferred: a conventional loan with as little as 3% down (up to 97% loan to value). You do not need to be a first time buyer.
- FirstStep and FirstGeneration: FHA loans for first time buyers, with lower income limits and a purchase price limit. Qualified veterans and buyers in targeted areas are exempt from the first time buyer rule for FirstStep.
Each program has a “Plus” version that adds down payment assistance. CHFA loan amounts top out at $832,750, even where the county loan limit is higher.
How the assistance itself works
| Assistance | Amount | Repayment |
|---|---|---|
| CHFA down payment assistance grant | Up to 3% of the first mortgage, capped at $25,000 | Never repaid. Available with SmartStep |
| CHFA down payment assistance second mortgage | Up to 4% of the first mortgage, capped at $25,000 | 0% interest, no monthly payment, repaid when you sell, refinance or stop living in the home |
| Denver metroDPA | A percentage of the first mortgage | 0% deferred second with no monthly payment, repaid when you sell, refinance, move out or at year 30 |
On a $400,000 loan, the 3% CHFA grant would be $12,000 and a 4% CHFA second would be $16,000. CHFA also expects you to contribute at least $1,000 of your own funds.
Denver’s metroDPA program is sponsored by the City and County of Denver but can be used across the Front Range. It has no first time buyer requirement and no purchase price limit, works with FHA, VA, USDA and conventional loans, requires homebuyer education, and generally needs a credit score of 640 (620 in some cases). Household income limits apply and are a little over $210,000 in 2026, so confirm the current figure when you apply. Our down payment assistance loans page explains how these programs fit together.
What credit score and income do you need to buy in Colorado?
For CHFA loans, the minimum credit score is 620, or higher if the loan type requires it. CHFA allows a total debt to income ratio up to 50% for scores from 620 to 659 and up to 55% at 660 and above. Every borrower must complete a CHFA approved homebuyer education course before closing, and the certificate is good for 12 months.
Income limits depend on the program and county:
- SmartStep and Preferred: up to $178,920 of qualifying income statewide, with no purchase price limit.
- FirstStep and FirstGeneration in Denver County: up to $144,000 for households of one or two people and $165,600 for three or more, with a purchase price limit of $832,750. Targeted areas allow more.
- metroDPA: a separate household income limit, currently a little over $210,000.
Tip: Program income is not always the same as the income a lender uses to qualify you, and some programs count every adult in the household. Get your numbers reviewed before you rule a program in or out.
Not sure which program fits?
Josh can compare CHFA, metroDPA and a standard loan side by side on the same home price.
What are the 2026 loan limits in Denver and the Colorado mountains?
Loan limits decide whether you can use a conforming or FHA loan or need a jumbo loan. Colorado’s limits vary widely by county in 2026.
| Area (one unit home) | 2026 conforming loan limit |
|---|---|
| Denver metro (Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties) | $862,500 |
| Boulder County | $879,750 |
| Summit and Lake counties (Breckenridge) | $1,092,500 |
| Pitkin and Garfield counties (Aspen) | $1,209,750 |
| Eagle County (Vail) | $1,249,125 |
| Larimer, El Paso and Weld counties | $832,750 |
FHA limits match those figures in the Denver metro ($862,500) and in Eagle County ($1,249,125) for 2026; HUD publishes the limit for every other county in its online lookup. Remember that CHFA loans stop at $832,750 regardless of the county limit, so buyers above that price typically use a standard conventional, FHA or jumbo loan instead.
What closing costs should you expect in Colorado?
Colorado is relatively inexpensive on transfer charges. The state documentary fee is one cent per $100 of the price, about $50 on a $500,000 home, and Denver does not charge a real estate transfer tax. A few mountain towns do: Vail, for example, charges a 1% real estate transfer tax. The larger costs are lender and title fees, prepaid property taxes and homeowners insurance, and the escrow deposits for them. A common planning range is 2% to 5% of the loan amount.
Seller credits can cover part of your closing costs, and down payment assistance can often be applied to them as well. Use the mortgage calculator to test payments at different prices before you shop.
What are the steps to buying your first home in Colorado?
- Check your credit and budget. Pull your credit reports and decide on a monthly payment you are comfortable with, not just the maximum you qualify for.
- Take the homebuyer education course. CHFA and metroDPA both require it, and the certificate stays valid for 12 months.
- Get preapproved with assistance built in. Ask your loan officer to price your options with and without assistance so you can see the trade off in rate and payment.
- Shop and make an offer. Your agent will write the offer on Colorado’s standard contract, including your earnest money and deadlines.
- Complete inspection, appraisal and underwriting. Keep your finances steady: no new credit, large deposits you cannot document or job changes without talking to your lender.
- Close and get your keys. Review your Closing Disclosure at least three business days before closing and bring your certified funds or wire as instructed.
Frequently asked questions
What credit score do you need for CHFA down payment assistance?
CHFA’s minimum credit score is 620, or higher if the loan type requires it. Denver’s metroDPA generally requires 640, with 620 allowed in some cases.
Do you have to be a first time buyer to use CHFA?
Not always. SmartStep and Preferred are open to repeat buyers. FirstStep and FirstGeneration are for first time buyers, with exceptions for qualified veterans and targeted areas under FirstStep.
Is Colorado down payment assistance a grant or a loan?
Both exist. CHFA’s grant, available with SmartStep, is up to 3% of the loan and is never repaid. CHFA’s second mortgage and Denver’s metroDPA are 0% loans with no monthly payment that are repaid when you sell, refinance or move out.
What is the 2026 FHA loan limit in Denver?
The 2026 FHA limit for a one unit home in Denver County and the surrounding metro counties is $862,500, the same as the conforming loan limit. In Eagle County it is $1,249,125.
How much money do you need to buy your first home in Denver?
Plan for a down payment of 3% to 3.5% with conventional or FHA, or 0% with VA or USDA, plus closing costs of roughly 2% to 5% of the loan. Down payment assistance and seller credits can cover much of that total.
Josh Lemos
Mortgage Broker, Lemos Group, powered by ARBOR Financial Group. Helping first time buyers, move up buyers and self employed borrowers, with a focus on the Greater Denver area and Vail.
NMLS #278295
Licensed in CA, CO, FL and OR
Buying your first home in Colorado?
See your real cash to close, with assistance included.
Josh Lemos can compare CHFA, metroDPA and standard loan options on the same home price and show you the payment and the cash you need at closing for each.
Sources and official resources
Information checked September 27, 2026. Rates, loan limits, program rules and assistance funding change, so confirm current terms before you rely on them.
This article is for general education only and is not a loan offer, commitment to lend, or tax or legal advice. Rates, terms, fees and programs vary by lender and are subject to change without notice. All loans are subject to credit approval, underwriting guidelines and property eligibility. Examples are illustrations, not quotes. Josh Lemos, NMLS #278295. Lemos Group is powered by ARBOR Financial Group. ARBOR Financial Group is a DBA of The Turnkey Foundation Inc., NMLS #236669 (NMLS Consumer Access). Equal Housing Opportunity.
