CHFA Loans Explained: Colorado's First-Time Homebuyer Program in 2026
If you are buying your first home in Colorado and down payment is the main obstacle, CHFA might be exactly what you need. Here is what it is, who qualifies, and what the assistance actually looks like.
What Is CHFA?
CHFA stands for Colorado Housing and Finance Authority. It is a state agency that offers loan programs and down payment assistance to help more Coloradans become homeowners. CHFA does not lend money directly. Instead, it partners with approved lenders, like The Becker Team, to offer these programs through the normal mortgage process.
Who Qualifies?
To use a CHFA loan, you need to meet a few basic requirements. First, you need to be a first-time homebuyer, which CHFA defines as someone who has not owned a primary residence in the last three years. If you owned a home five years ago but have been renting since, you still qualify. Second, the home has to be your primary residence, not a rental or vacation property. Third, you need a credit score of at least 620. Fourth, your income and the purchase price of the home need to fall within CHFA's limits.
Income and Purchase Price Limits in 2026
The limits vary by county. In high-cost areas like Denver and Boulder counties, the income limits are higher to reflect local wages. As a general example, a household of two in Denver County can earn up to around $135,000 and still qualify. For a household of four, that number is higher. Purchase price limits in the Denver metro are typically around $600,000 to $700,000 for a single-family home in 2026.
These numbers change periodically, so the best way to get the current limits for your specific county is to ask us directly. We work with CHFA loans regularly and always have the latest figures.
What Assistance Is Available
CHFA offers down payment assistance as either a second loan or a grant, depending on the program. The most common option provides up to 4% of the first mortgage amount to cover your down payment and closing costs. On a $400,000 loan, that is up to $16,000 you do not have to come up with out of pocket.
There are a couple of different CHFA programs to be aware of. CHFA SmartStep is the core offering and pairs with FHA, VA, USDA, or conventional loans. CHFA SectionEight is designed for current or former Section 8 voucher holders. Each has slightly different terms, and we can help you figure out which one fits your situation.
How the Process Works
Getting a CHFA loan works like any other mortgage. You apply through an approved lender, we verify your income and credit, and we determine which CHFA program fits best. The main difference is there is a required homebuyer education course you complete online before closing. It takes a few hours and covers the basics of owning a home.
If you qualify, CHFA can be a real game-changer. We have helped a lot of Colorado buyers close their first home with very little out of pocket using these programs.