How to Buy Your First Home in Colorado: The Programs Most Buyers Never Hear About

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.

CHFA vs. FHA vs. USDA in Colorado: How to Pick the Right Loan When You're Buying Your First Home

The most common question I get from first-time buyers in Colorado isn't about interest rates. It's this: "I keep hearing about CHFA, FHA, and USDA — are these different loans or the same thing? Which one do I need?"

They're not the same thing, and the right answer depends on where you're buying, what you earn, and how much you've saved. After 30 years of sitting across the table from buyers in Colorado Springs, Denver, Pueblo, and everywhere in between, here's how I actually explain it.

The Short Version

CHFA is a Colorado state program that pairs with FHA, VA, or conventional loans to add down payment assistance on top. It's not a separate loan type — it's a layer of help you can add.

FHA is a federal loan type with a 3.5% minimum down payment and flexible credit requirements. CHFA can be layered on top of FHA to cover that 3.5%.

USDA is a federal zero-down loan for properties in eligible rural and semi-rural areas of Colorado. No down payment required. Income limits apply.

So when someone asks me "should I do CHFA or FHA," my answer is usually: those aren't opposites. Most CHFA loans are FHA loans with a CHFA assistance layer added. The better question is whether you need down payment assistance and whether your property qualifies for USDA.

How FHA Loans Work in Colorado

FHA loans are backed by the Federal Housing Administration and are available statewide, for any eligible property type, regardless of location. The main appeal is the low barrier to entry:

• Minimum down payment: 3.5% with a 580+ credit score, 10% with a 500–579 score

• Debt-to-income flexibility: FHA allows higher DTI ratios than most conventional loans

• Property requirements: The home has to meet FHA's minimum property standards — basically livable and structurally sound

The downside is mortgage insurance. FHA charges a 1.75% upfront premium (rolled into the loan) and an annual premium that runs about 0.55% of the loan balance. On a $400,000 purchase, that's roughly $7,000 upfront and around $183/month ongoing until you refinance or pay down to 20% equity.

FHA works best when the property doesn't qualify for USDA, you need credit flexibility, and you're planning to layer CHFA down payment assistance on top to cover the 3.5%.

How CHFA Works in Colorado

CHFA — the Colorado Housing and Finance Authority — doesn't originate loans. What CHFA does is offer down payment assistance to Colorado buyers who use a CHFA-approved lender and meet CHFA's income and credit requirements.

The assistance comes in two forms:

CHFA Down Payment Assistance Grant: Up to $25,000 or 3% of the total loan amount, whichever is less. No repayment required.

CHFA Down Payment Assistance Second Mortgage: Up to $25,000 or 4% of the loan amount. Repayment is deferred until you pay off the first mortgage, refinance, or sell.

CHFA's baseline requirements: mid-credit score of 620 or higher, total household income within CHFA's income limits (which vary by county and household size), and completion of a CHFA-approved homebuyer education class.

One thing buyers often miss: when you layer CHFA DPA on top of an FHA loan, the interest rate on the first mortgage is slightly higher than a non-CHFA FHA rate. That's the tradeoff — you get cash for your down payment, but the rate is adjusted upward to account for it. For most buyers who don't have $14,000+ sitting in savings, this is still the right call. The math almost always works out in favor of keeping cash and accepting a modestly higher rate.

How USDA Loans Work in Colorado

USDA loans are the zero-down option for buyers purchasing in eligible areas. The program is federally backed by the USDA's Rural Development division, and despite the "rural" label, a lot of the areas around Colorado Springs and south of Denver still qualify.

Key differences from FHA:

• No down payment required at all

• Mortgage insurance is cheaper — 1% upfront guarantee fee plus 0.35% annually, versus FHA's 1.75% upfront and 0.55% annually

• Income limits apply based on household size and county

• Property must be in a USDA-eligible area — most of Colorado Springs proper doesn't qualify, but Fountain, Pueblo, Peyton, and other surrounding areas do

If your property is USDA-eligible and your income is within limits, USDA beats FHA on almost every financial measure. The only reason to choose FHA over USDA when USDA is available is if the property doesn't qualify.

Side-by-Side Comparison

	FHA	FHA + CHFA DPA	USDA
Minimum down payment	3.5%	$0 (CHFA covers it)	$0
Location restrictions	None	None	Rural/eligible areas only
Income limits	None	CHFA limits by county	USDA limits by household size
Credit score minimum	580	620	640
Mortgage insurance	Higher	Higher	Lower
Upfront fee	1.75% MIP	1.75% MIP	1% guarantee fee
Annual MI rate	~0.55%	~0.55%	0.35%
Repayment on assistance	N/A	Grant: no. 2nd mortgage: deferred	N/A
Best for	Property not USDA-eligible, needs flexibility	First-time buyer needing down payment help	USDA-eligible area, wants lowest MI

How to Decide

Step 1: Check the property address against the USDA eligibility map. If it's eligible and your household income is within the limit, USDA is almost always your best path. Call us to confirm — we'll know in a few minutes.

Step 2: If the property doesn't qualify for USDA, look at FHA + CHFA. Check your household income against CHFA's income limits for your county. If you qualify, layering CHFA DPA on top of an FHA loan can get you into the home with $0 down (sometimes as little as $1,000 out of pocket total).

Step 3: If your income is over CHFA's limits, we'll look at conventional options, potentially with down payment assistance from other programs we work with.

The scenario that trips buyers up most often is this: they assume they make too much for down payment assistance and give up before asking. CHFA income limits for a family of four in El Paso County are around $180,000 for certain loan types. A lot of households that think they're "too well-off" for help actually qualify.

What About Colorado's First-Generation Buyer Program?

Worth mentioning here: CHFA has a First Generation Program specifically for buyers whose parents have never owned a home. The grant under this program is $25,000, which is the maximum CHFA DPA amount. It's stackable with an FHA loan and has the same income and credit requirements as standard CHFA. If you're the first person in your family to buy a home in the U.S., this program is worth a specific conversation with our team.

One More Thing: Don't Let the Complexity Stop You

I've talked to buyers who spent three months reading forum posts trying to figure out which loan they should use before ever calling a lender. That's three months of rent paid while home prices moved. The programs themselves aren't complicated once someone walks you through them — and a 15-minute conversation will tell you exactly which path makes sense for your income, your credit, and where you want to buy.

Call (303) 709-9625, or start the process at apply-nickbarta.com. We'll tell you which program fits before you spend another weekend wondering.

Nick Barta is a Division President and Loan Originator at Security First Financial, NMLS #25540. He has been originating mortgages in Colorado for over 30 years. This post is for educational purposes only and does not constitute a loan commitment.

Why USDA Loans Are Colorado's Most Underused Zero-Down Option (And Who Actually Qualifies)

Most Colorado buyers have heard of VA loans and FHA loans. USDA loans? They hear "rural" and immediately assume the program isn't for them. That assumption is costing a lot of people a real shot at homeownership — because some of the most popular places to buy near Colorado Springs and Pueblo qualify for USDA financing, and the down payment is exactly $0.

Here's what I've seen after more than 30 years working with Colorado homebuyers: USDA loans are the best-kept secret in this state, and they're especially relevant right now when every dollar of down payment matters.

What a USDA Loan Actually Is

The USDA Guaranteed Loan Program is a federally backed mortgage offered through the U.S. Department of Agriculture. The "rural" label is technically accurate but genuinely misleading — USDA eligibility is determined by population density maps that haven't been redrawn in years, and a lot of areas that people think of as suburban or semi-urban still qualify.

The loan itself works like a conventional mortgage in most ways. You get a 30-year fixed rate, you work with a USDA-approved lender (like us), and the government guarantees the loan rather than lending the money directly. That guarantee is what lets lenders offer zero down payment.

The two main advantages over FHA:

A USDA loan has no down payment requirement at all. FHA requires 3.5%, which on a $400,000 home is $14,000 out of pocket before closing costs. On a USDA loan, that number is zero.

USDA mortgage insurance is also structured differently. FHA has a 1.75% upfront MIP plus 0.55% annually. USDA charges a 1% upfront guarantee fee (which can be rolled into the loan) and 0.35% annually. On a $400,000 loan, that's roughly $140/month less in USDA mortgage insurance compared to FHA, ongoing.

Where USDA Loans Work Near Colorado Springs

This is the part most people get wrong. Fountain, Peyton, Calhan, Pueblo West, Monument (parts of it), Black Forest, and several other communities in El Paso and Pueblo counties are USDA-eligible areas as of the current eligibility maps. A lot of buyers who work in Colorado Springs and want more land for less money are already looking in exactly these areas — and they don't realize they can buy with no money down.

Falcon is worth mentioning separately. It's a fast-growing area where a lot of our clients end up, and eligibility there depends specifically on the address. I've had buyers assume it wasn't eligible and miss out on a zero-down purchase. Always check the USDA eligibility map before ruling it out.

For the Denver metro, USDA eligibility is tighter — most of Adams, Arapahoe, Jefferson, and Denver counties don't qualify. But if you're willing to look further out in the metro, some areas east and south still come up eligible.

What You Need to Qualify

Credit score. Most USDA lenders want to see a minimum 640 mid-credit score. Some lenders accept manual underwriting below that threshold, but 640 is the standard automated approval floor.

Income limits. This is where USDA trips people up. The program has household income limits, and they're based on county and household size. For a family of 1–4 in El Paso County in 2025, the standard income limit is around $110,650. For households of 5 or more, it goes higher. If you're over the limit, USDA isn't an option — but CHFA or conventional with a small down payment might be.

Debt-to-income ratio. USDA typically looks for a DTI at or below 41%, though exceptions exist. The guarantee fee can be rolled into the loan, which helps buyers who are short on cash but have enough income to support the payment.

Primary residence only. No investment properties, no second homes. The home has to be where you live.

The property itself has to be in an eligible rural area and meet USDA's property condition standards, which are similar to FHA — the home has to be livable and meet basic safety requirements.

USDA vs. FHA: When to Use Which

I get this question constantly. Here's my honest answer:

If the property is USDA-eligible and you don't have much saved, USDA wins almost every time. The zero down payment and lower mortgage insurance cost make it the better financial deal.

If the property doesn't qualify — most of the Denver metro, most of Colorado Springs proper — then FHA is your primary zero-down-payment alternative when combined with down payment assistance, or the lowest barrier conventional entry point if you have a smaller down payment saved.

If you're in a USDA-eligible area but your income is over the limit, CHFA or a conventional loan with down payment assistance from our team is the right conversation to have.

The comparison between USDA and FHA isn't really about which loan is objectively better. It's about which one works for your property, your income, and your situation right now.

The One Thing That Disqualifies Most USDA Buyers

Property location is where most USDA applications run into trouble, but income is where buyers get surprised. A lot of dual-income households assume they're low enough — but USDA counts all income in the household, including adult children living at home who are working. If your household gross is $115,000 in El Paso County with a family of four, you're over the standard limit and the program isn't available, regardless of the property location.

This is why a 10-minute phone call before you fall in love with a specific house matters. We can check eligibility in minutes and save you weeks of chasing a loan that won't close.

How to Get Started

If you're buying in Fountain, Pueblo, Peyton, or any area where USDA might apply, the first step is confirming the property address on the USDA eligibility map and then having us check your income against the county limits.

Our application takes about 10–15 minutes. You'll know where you stand before you spend a weekend touring houses that require a down payment you don't have.

Call us at (303) 709-9625, or start your application at apply-nickbarta.com.

Nick Barta is a Division President and Loan Originator at Security First Financial, NMLS #25540. He has been originating mortgages in Colorado for over 30 years and is licensed in AZ, CO, FL, MA, TX, UT, and WY. This post is for educational purposes and does not constitute a loan commitment or guarantee of loan terms.