One of the most common things I hear from first-time buyers in Denver and across Colorado is some version of: "I'd love to buy, but I just don't have enough saved for a down payment." What most of them don't know is that there's a Colorado state program specifically designed to solve that problem and a surprising number of buyers qualify without realizing it.
That program is CHFA, the Colorado Housing and Finance Authority. Here's everything you need to know.
What is CHFA?
CHFA is a self-funded state agency that offers below-market interest rate mortgages combined with down payment and closing cost assistance to qualifying Colorado homebuyers. It's not a grant from a charity or a government handout: it's a structured financial program backed by the state of Colorado specifically to help people buy homes who otherwise couldn't.
CHFA doesn't lend money directly. Instead, it works through a network of approved lenders, including Three Point Mortgage, who originate the loans and deliver them to CHFA. This means you get a single lender relationship throughout the process.
CHFA can provide up to 3% of your loan amount as down payment and closing cost assistance. On a $450,000 home in Denver, that's up to $13,500, enough to dramatically reduce or in some cases eliminate the cash you need to close.
The main CHFA programs in Colorado
CHFA HomeAccess: CHFA's primary program offering a 30-year fixed-rate mortgage at below-market rates plus a second mortgage for down payment assistance. Available in all Colorado counties subject to income and purchase price limits.
CHFA SmartStep: Combines a CHFA first mortgage with a grant (not a loan) of up to 3% for down payment. The grant doesn't need to be repaid, making it one of the most valuable CHFA offerings for buyers who qualify.
CHFA HomeOpener: For buyers who don't qualify as first-time homebuyers but are purchasing in a federally designated targeted area. Targeted areas exist across Denver, Colorado Springs, Pueblo and other Colorado communities.
Who qualifies for CHFA?
- Credit score: Minimum 620 for most CHFA programs
- First-time buyer: You haven't owned a primary residence in the past three years (exceptions for targeted areas)
- Income limits: Vary by county and household size. Denver metro limits are higher than rural counties.
- Purchase price limits: Also vary by county. Denver metro limits accommodate current home prices.
- Primary residence: The home must be your primary residence, not a rental or investment property.
- Homebuyer education: All CHFA programs require completion of an approved homebuyer education course (available online, typically 6-8 hours).
Many buyers assume they make too much to qualify for CHFA. In the Denver metro, income limits are high enough that dual-income households earning well into six figures often still qualify. Don't assume: a 10-minute call can tell you definitively whether you qualify.
CHFA income and purchase price limits for Denver metro (2026)
CHFA adjusts limits annually. For the Denver-Aurora-Lakewood metro area, current limits generally accommodate household income up to approximately $160,000-$180,000 depending on household size and specific program, and purchase prices up to $600,000+ in most metro programs. For exact current limits by county and household size, the best step is a conversation with a CHFA-approved lender who can pull the current figures for your specific situation.
How CHFA works with other loan types
- FHA + CHFA: Combine FHA's 3.5% minimum down payment with CHFA assistance to further reduce cash to close.
- Conventional + CHFA: Use CHFA's below-market rate with a conventional loan for buyers with stronger credit profiles.
- VA + CHFA: Veterans can sometimes layer CHFA assistance with VA's zero-down benefit for closing cost coverage.
The tradeoffs worth knowing
- Rate is slightly higher than market: CHFA's first mortgage rate is typically slightly above the lowest available market rates. The tradeoff is the down payment assistance, which often more than compensates.
- Second mortgage on DPA: If the assistance is structured as a second mortgage rather than a grant, you'll have a second lien on the property. It's typically low or zero interest and deferred.
- Income and price limits: If you're above the limits, CHFA isn't available, but other down payment assistance programs may still be.
- Homebuyer education requirement: Required before closing. Plan for 6-8 hours online.
Is CHFA right for you?
CHFA makes the most sense if your primary barrier to buying is cash to close and you have stable income, decent credit, but not a large down payment saved. If that's your situation, CHFA can move your timeline up significantly.
It makes less sense if you have substantial savings and can put 10-20% down, since the slightly higher rate and second mortgage structure may cost more over time than a conventional loan with a larger down payment. The honest answer is: it depends on your specific numbers. I run CHFA side-by-side comparisons with conventional options for every first-time buyer I work with.
Chris Cartwright is a CHFA-approved mortgage broker serving first-time homebuyers across Colorado, Washington, Texas, California, Arizona and Florida. He helps buyers identify every program they qualify for and structure financing around their actual goals.
Find out if you qualify for CHFA
A quick call is all it takes to know whether CHFA is right for your situation and exactly how much assistance you could receive.
CHFA program details are subject to change. Contact a CHFA-approved lender for current eligibility requirements and limits. This content is for informational purposes only. All loans subject to credit approval. Equal Housing Lender.