Three Point Mortgage is not a CHFA Participating Lender, and neither Chris Cartwright nor Three Point Mortgage is affiliated with, endorsed by, or representing the Colorado Housing and Finance Authority.
CHFA is a separate public entity. Its program names and materials belong to CHFA. This page explains CHFA programs independently so buyers can understand them. CHFA loans are originated through wholesale lenders that hold agreements with CHFA. Confirm all program terms directly with CHFA at chfainfo.com, the official source, before making a decision.
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 lenders it has approved, who originate the loans and deliver them to CHFA. Your loan is originated by one of those lenders and you deal with them throughout the process.
CHFA can provide down payment and closing cost assistance of up to the lesser of $25,000 or 3 percent of your first mortgage as a grant, or the lesser of $25,000 or 4 percent as a second mortgage. That is often enough to dramatically reduce, and in some cases eliminate, the cash you need to close.
How CHFA actually structures its programs
This is the part most articles get wrong, including some that rank well. CHFA does not offer a single program that bundles everything together. It offers a first mortgage program, and separately it offers down payment assistance that attaches to it. You choose one from each side.
The first mortgage programs
CHFA Preferred: The conventional option, using Fannie Mae or Freddie Mac financing. Qualifying income limit of $178,920 with no purchase price limit, and no first-time buyer requirement.
CHFA SmartStep: The government option, pairing with FHA, VA, or USDA-RD financing. Same $178,920 qualifying income limit, same absence of a purchase price limit, and also no first-time buyer requirement.
CHFA FirstStep: FHA only, restricted to first-time homebuyers, qualified veterans, or buyers purchasing in a targeted area. This program uses gross annual household income rather than qualifying income, and it does carry purchase price limits that vary by county.
CHFA FirstGeneration: FHA only, restricted to buyers where at least one borrower is a first-generation homebuyer. Also uses gross annual household income and carries purchase price limits.
The down payment assistance
CHFA DPA Grant: Up to the lesser of $25,000 or 3 percent of the total first mortgage loan amount. It is a grant rather than a loan.
CHFA DPA Second Mortgage Loan: Up to the lesser of $25,000 or 4 percent of the total first mortgage loan amount, with no monthly payments and repayment in full when certain events occur. First-generation homebuyers can access up to $25,000 regardless of the first mortgage amount.
Neither form of assistance counts against your debt-to-income ratio, which is a meaningful advantage over borrowing the money elsewhere. When you see a CHFA program name with "Plus" attached to it, that generally signals the version paired with down payment assistance.
CHFA also runs more specialized programs, including CHFA HomeAccess for households that include a person with a disability, and CHFA Schools To Home for Colorado public school employees. Those carry their own eligibility rules and are worth asking about specifically rather than assuming the standard programs are your only options.
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.
Want to talk through your situation?
A 15-minute call gives you a clear picture of your options and what actually makes sense for your goals.
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: Pair CHFA assistance with conventional financing 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: CHFA sets and publishes its own first mortgage rates rather than having them priced by the lender. Ask what CHFA is publishing on the day you are comparing options, and weigh it against the assistance you would receive.
- 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% to 20% down, since the program's rate and second mortgage structure may cost more over time than a conventional loan. The honest answer is: it depends on your specific numbers. For every first-time buyer I work with, I compare the assistance options available to them against conventional financing so the tradeoffs are visible before a decision gets made. If you want a sense of how I work through these situations, client reviews are here, and there is more background on my approach if that helps.
Colorado public school employees, in any role, have access to a separate program with a much larger assistance amount: see the CHFA Schools To Home guide, along with a Shared Appreciation Calculator that models what the shared appreciation obligation costs at sale.
Chris Cartwright is a licensed 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. I can originate CHFA loans through wholesale lenders who hold the participating lender agreements with CHFA. If you want to know which program actually fits your situation, call me and we will work it out.
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. Chris Cartwright and Three Point Mortgage are not a CHFA Participating Lender and are not affiliated with, endorsed by, or representing the Colorado Housing and Finance Authority. CHFA loans are originated through wholesale lenders that hold agreements with CHFA. This content is independent and educational. All loans subject to credit approval. Equal Housing Lender.