The #1 reason Colorado buyers delay homeownership is down payment accumulation — not income. DPA programs solve exactly this. Colorado's options are substantial.
CHFA FirstStep
Colorado's most widely used first-time buyer program. Paired with a 30-year FHA loan at CHFA's below-market rate. Second loan covers minimum 3% FHA down payment (typically 3–4% of price): 0% interest, no monthly payment, due at sale/refinance. Income limits ~$105K–$130K (1–4 households) in Front Range counties. Purchase price caps generally $550K–$750K+. Homebuyer education required (~$75).
CHFA SmartStep & HomeOpener
SmartStep pairs with conventional; 3% of price as 0% second mortgage. HomeOpener serves buyers who don't meet first-time-buyer definition (no primary residence ownership in past 3 years) — income limits typically 130%+ AMI.
Metro-Area DPA
Metro Mortgage Assistance Plus: Denver metro buyers under 100% AMI — 4% of purchase price as forgivable grant after 3 years. City of Denver LIFT: Forgivable loans up to $15,000 in targeted neighborhoods. Aurora Housing Authority: Local DPA — coordinate during pre-approval.
Employer-Assisted Housing
UCHealth, NREL (Golden), Denver Public Schools, and others offer housing benefits. Ask HR — more common than people realize.
Federal: MCC
CHFA's Mortgage Credit Certificate converts a portion of annual mortgage interest into a federal tax credit — typically $2,000–$3,500/year in actual tax savings. Can stack with CHFA first + second mortgages.
Real Stacking Example
Pueblo County buyer, $72,000 income, 660 credit, $295,000 home: CHFA FirstStep FHA + CHFA second covers 3.5% ($10,325) + MCC ($2,000/year tax credit) + 3% seller concession on $5,500 closing costs = net cash to close ~$1,000–$2,000.
We identify every stackable program during pre-approval at no charge. Contact Tayton Capital or apply now.
📧 tj@taytoncapitalllc.com
📞 970-708-9624
Get help with buyer guide
Talk to a licensed broker or explore the program that fits this article.
Frequently asked questions
What is the income limit for CHFA in Colorado?
Varies by county and household size. In most Front Range counties, limits for households of 1–4 range from $105,000–$130,000. Mountain counties have higher limits.
Is CHFA down payment assistance a grant or a loan?
It's a second loan — 0% interest, no monthly payment, due at sale or refinance. Not a grant unless paired with a specific forgiveness program.
Can I use DPA programs with a VA loan?
Some DPA programs pair with VA, though many are designed for FHA or conventional. We identify VA-compatible programs in your county.
Can I stack the MCC with CHFA first and second mortgages?
Yes — the MCC can combine with a CHFA first and second mortgage in many cases, producing maximum benefit for eligible buyers.
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