Colorado is not the easiest state to buy your first home in. Median home prices in the Denver metro hover above $550,000. Colorado Springs is above $400,000. Even the smaller markets have moved up significantly over the last five years. And yet, there are buyers closing on Colorado homes every week with a few thousand dollars or less out of pocket.
The difference between those buyers and the ones still renting isn't income. It's usually the programs they knew about.
This guide covers the actual path — what the programs are, what they require, and how to figure out which one fits your situation.
Why Most First-Time Buyers Overprepare for the Wrong Thing
The instinct when buying your first home is to save as much as possible for a down payment. That's reasonable, but it can also mean spending two or three years building a savings account you don't actually need — because the programs designed for first-time buyers in Colorado can provide the down payment for you.
The most I've seen a buyer come in with from a CHFA grant in 2025 is $25,000 toward their down payment and closing costs. They had $4,000 in savings. They closed on a $385,000 home in Fountain with $1,000 of their own money at the table.
The programs are real. They have requirements. And knowing whether you qualify takes about 15 minutes.
Program 1: CHFA (Colorado Housing and Finance Authority)
CHFA is Colorado's primary down payment assistance program and the most widely available option for first-time buyers statewide.
What CHFA offers:
The Down Payment Assistance Grant gives you up to $25,000 or 3% of the total loan amount (whichever is less). It doesn't need to be repaid. Ever.
The Down Payment Assistance Second Mortgage gives you up to $25,000 or 4% of the loan amount. Repayment is deferred — you don't pay it back until you sell, refinance, or pay off your primary mortgage.
What CHFA requires:
Mid-credit score of 620 or higher
Total household income within CHFA's county income limits (for El Paso County, limits for a family of four are roughly $166,000–$180,000 depending on loan type — most first-time buyers are well under this)
Completion of a CHFA-approved homebuyer education class, which takes a few hours online
Minimum $1,000 of your own money toward the purchase
CHFA pairs with FHA, VA, or conventional first mortgages. Most CHFA buyers use FHA as the underlying loan because it has the most flexibility on credit and debt ratios.
Who CHFA is best for: First-time buyers with steady income, a 620+ credit score, and not much saved for a down payment.
Program 2: USDA Loans (For Buyers Outside the City Core)
If you're open to buying in Fountain, Pueblo, Peyton, Black Forest, or other areas outside Colorado Springs proper — or in rural communities elsewhere in the state — a USDA loan gives you zero down payment with no assistance program required.
USDA loans are federally backed by the U.S. Department of Agriculture. The "rural" label is misleading — eligibility is based on population density maps, and a lot of the communities where Colorado buyers are looking (especially south and east of Colorado Springs) still qualify.
The financial advantage over FHA is real: USDA mortgage insurance costs about $140/month less than FHA on a $400,000 loan, and there's no down payment to begin with.
What USDA requires:
A USDA-eligible property address (check the eligibility map, or ask us to check for you)
Household income within USDA's county limits — for a family of four in El Paso County, roughly $110,650 for the standard program
640 mid-credit score for automated underwriting
Primary residence only
Who USDA is best for: Buyers who want zero down, are purchasing outside the city core, and have household income within the limits.
Program 3: CHFA First Generation Program
If neither you nor your parents have ever owned a home in the U.S., the CHFA First Generation Program is specifically designed for you. The grant amount is $25,000 — the maximum CHFA offers — and it's a non-repayable grant.
The requirements mirror standard CHFA: 620 mid-credit score, income within limits, homebuyer education class, $1,000 toward the purchase. The only additional condition is documenting that neither you nor your parents have owned a home in the United States.
For buyers where this applies, this is almost always the best path. The full $25,000 covers the FHA down payment and most closing costs on homes priced up to $400,000.
Program 4: El Paso County Turnkey Plus
For buyers specifically purchasing in El Paso County, the Turnkey Plus program is worth knowing about. It's a soft second mortgage — meaning repayment is forgiven over time — that can be layered with an FHA or conventional first mortgage.
Turnkey Plus is designed for moderate-income buyers in El Paso County and has some of the most flexible income limits of any local program. I've had buyers choose it over CHFA because the specific terms fit their situation better.
If you're buying in Colorado Springs, Fountain, Security, or anywhere else in El Paso County, this is a program you should specifically ask about.
Program 5: metroDPA (Denver Metro Buyers)
For buyers purchasing in the Denver metro area, metroDPA offers down payment assistance specifically for that region. The program is available in Adams, Arapahoe, Denver, and several other counties, and it's structured as a zero-interest, deferred second mortgage.
Income limits and eligible property prices vary, and the program has been updated several times since its launch — current details are on the metroDPA website or we can walk you through them directly.
If you're buying in Denver, Aurora, Commerce City, or the surrounding metro, metroDPA is the local DPA option to explore.
What "First-Time Buyer" Actually Means for These Programs
Most people assume "first-time buyer" means you've never owned a home in your life. For CHFA and USDA, the definition is more specific: you haven't owned a primary residence in the last three years. So if you owned a home five years ago, sold it, and have been renting since — you likely qualify as a first-time buyer under these programs.
There are also exceptions for military veterans under certain programs. If you've served, ask us specifically about VA loan options in addition to CHFA, because the two can sometimes be combined.
The Honest Conversation About Credit
A 620 credit score is the floor for CHFA. A 640 is the standard for USDA automated approval. If you're below those thresholds right now, that doesn't mean you can't buy — it means there's work to do first, and knowing what to fix and how long it takes is part of the planning process.
The most common credit issues I see with first-time buyers: utilization too high on existing cards (paying cards down to below 30% of the limit can move a score 20–40 points in two months), one or two collection accounts, and thin credit files where the person has good payment history but only one or two accounts. All of these are solvable.
How to Figure Out Which Program Fits You
You don't need to read every program guide before calling a lender. What you need to know before the call:
What zip codes or cities are you considering buying in?
What's your household gross income (all earners living in the house)?
Do you have a rough sense of your credit score?
How much do you have saved right now?
With those four data points, we can tell you in one conversation which programs you're eligible for, what your payment would look like, and what needs to happen before you're ready to go under contract.
Call (303) 709-9625 to talk through your situation, or apply at apply-nickbarta.com and we'll reach out with your options.
The buyers I see get to closing fastest are the ones who picked up the phone in April instead of waiting until they had what they thought was "enough." Most of them had more than enough the whole time.
Nick Barta is a Division President and Loan Originator at Security First Financial, NMLS #25540, with over 30 years of Colorado mortgage experience. He is licensed in AZ, CO, FL, MA, TX, UT, and WY. This post is for educational purposes only and does not constitute a loan commitment.
