Buying your first home is a huge milestone, and in Colorado, there are plenty of resources to help make the journey smoother and more affordable. From down payment assistance to favorable loan terms, these programs are designed to empower first-time buyers to step confidently into homeownership. Whether you’re ready to buy or just starting to explore your options, here’s an overview of the programs that can help you along the way.
1. Colorado Housing and Finance Authority (CHFA) Programs
CHFA is a go-to resource for first-time homebuyers across Colorado, offering several programs to help make homeownership more accessible.
- FirstStep and FirstStep Plus: These programs provide 30-year fixed-rate FHA loans with down payment assistance. Eligible buyers must meet income and purchase price limits, complete a homebuyer education course, and meet credit score requirements.
- HomeAccess and HomeAccess Plus: Tailored for buyers with disabilities or households with a disabled family member, these programs offer affordable loan options and down payment support.
- SectionEight and SectionEight Plus: Designed to help Section 8 Housing Choice Voucher holders purchase a home by combining their voucher benefits with a CHFA mortgage loan.
With flexible requirements and a focus on education, CHFA programs are an excellent option for first-time buyers ready to take the leap.
2. Colorado Housing Assistance Corporation (CHAC) Down Payment Assistance Program
CHAC provides down payment assistance loans to low- and moderate-income first-time buyers statewide. These loans require buyers to contribute at least $1,000 toward their purchase and complete a homebuyer education course. Income limits and other eligibility criteria apply, but for those who qualify, this program can be a game-changer.
3. metroDPA Program
If you’re considering a home in the Denver metro area, the metroDPA program is worth exploring. Offering up to 5% of the loan amount for down payment and closing cost assistance, this program uses a forgivable second mortgage to help buyers. Eligibility requirements include meeting credit score minimums and income limits, but the extra boost can make a big difference for first-time buyers.
4. Local Assistance Programs
Many cities and counties across Colorado offer their own first-time homebuyer programs:
- Boulder County Down Payment Assistance
- Douglas County Housing Partnership
- City of Aurora Down Payment Assistance Program
Local programs are tailored to meet the needs of their communities, offering targeted support where it’s needed most.
5. Federal Programs
In addition to state and local options, first-time buyers in Colorado can tap into national resources:
- FHA Loans: Backed by the Federal Housing Administration, FHA loans are a popular choice for their low down payment requirements and flexible credit standards.
- VA Loans: Available to eligible veterans, active-duty service members, and certain National Guard and Reserve members, VA loans often require no down payment and feature competitive interest rates.
- USDA Loans: For buyers looking to purchase in rural or suburban areas, USDA loans offer no down payment and low-interest options.
How to Get Started
Navigating the world of first-time homebuyer programs can feel overwhelming, but taking it step by step will set you up for success:
- Do Your Research: Explore the programs available in your area and see which ones align with your financial situation and goals.
- Complete Homebuyer Education: Most programs require you to complete a course to ensure you’re prepared for homeownership.
- Gather Documentation: Be ready to provide proof of income, credit history, and employment details.
- Contact Approved Lenders or Agencies: Reach out to program administrators or lenders to begin the application process.
Why These Programs Matter
First-time homebuyer programs are designed to do more than help you purchase a house—they’re here to make your first step into homeownership as smooth and sustainable as possible. From lowering upfront costs to providing guidance through the buying process, these resources are invaluable for making the dream of owning your own home a reality.
Ready to Find Your First Home?
At Big Frontier Group, we’re passionate about helping first-time buyers take that exciting leap into homeownership. We’ll guide you through every step of the process, connect you with resources that fit your needs, and help you find the perfect home in Colorado. Let’s make your dream a reality!