How Much Money Do You Actually Need to Buy a Home in Colorado?
From zero down with VA to 3.5 percent with FHA, 3 percent Conventional and CHFA assistance up to $25,000, here is what Colorado buyers really need to bring.
July 8, 2026
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Colorado First-Time Homebuyer Programs: What Buyers Should Know
June 30, 2026 · 6 min read ·
CHFA SmartStep, FirstStep, FirstGeneration and Schools To Home deliver Colorado down payment assistance up to $25,000. Here is how to use them in 2026.
The short version
- CHFA pairs 30-year fixed FHA, VA and USDA purchase loans with down payment assistance.
- Assistance can reach $25,000, structured as a grant or a 0 percent interest second mortgage.
- SmartStep has no first-time-buyer requirement, so move-up and rental-conversion buyers can use it too.
- Newer programs like FirstGeneration and Schools To Home target specific buyer groups.
- Program rules change and income limits reset annually, so check current details with a participating lender.
Colorado makes first-time buying easier than other states
Colorado's housing authority, CHFA, offers 30-year fixed mortgages for FHA, VA and USDA purchases, paired with down payment assistance that can change the buy-versus-wait math for a first-time buyer.
The workhorse is SmartStep and SmartStep Plus. SmartStep has no first-time-buyer requirement, which means move-up buyers and owners converting a home to a rental can use it too. SmartStep Plus adds down payment assistance on top.
A buyer's contribution of around $1,000 is typically required, and the program's statewide income limit was $174,440 for 2026. Those limits reset, so always confirm the current numbers with your lender.
How the $25,000 assistance is structured
CHFA offers two assistance flavors. The first is a grant of up to $25,000 or 3 percent of the first mortgage, whichever is less, which does not have to be repaid and can cover the down payment, closing costs and prepaids.
The second is a CHFA second mortgage of up to $25,000 or 4 percent of the first mortgage, a silent, 0 percent interest second with no monthly payment and no accrued interest. It comes due when you sell, refinance, reach the end of the first mortgage term, or stop using the property as your primary residence.
Both structures free up your cash, and neither behaves like a traditional second mortgage payment. That is why assistance, not a bigger down payment, is often the smarter first step.
Programs targeted at specific buyers
FirstStep and FirstStep Plus serve first-time buyers, veterans and purchases in targeted areas with eligibility and price caps. FirstGeneration, launched in July 2024, delivers up to $25,000 in down payment assistance as a 0 percent interest deferred second for first-generation buyers.
Schools To Home, launched in July 2026, supports Colorado public school employees with down payment assistance of up to 25 percent of the first mortgage amount.
Johnny is a participating mortgage professional who runs CHFA files regularly. He will tell you which program fits you, what the income and price limits are today, and exactly what to bring to lock it in. Official program details live at chfainfo.com.
Written by
Johnny Macias
Colorado mortgage professional, active investor and landlord, and founder of The Real Estate Ladder. He has owned, lost and rebuilt real estate wealth, and now helps Colorado homeowners climb from 0 to 3 properties, one smart mortgage at a time.
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