Colorado first-time homebuyer programs, explained
CHFA makes home loans with down payment help statewide, as a grant or a second loan capped at $25,000. Denver's metroDPA and the City of Boulder run their own programs. Each has income limits and rules, and a participating lender confirms what you qualify for.
Program details checked October 21, 2026. Rules and limits change often; the lender confirms what applies to you.
CHFA
CHFA is the Colorado Housing and Finance Authority. It makes home loans through approved lenders across the state and pairs them with down payment help. The help comes two ways:
- A grant of up to 3% of your loan, capped at $25,000, that you don’t repay.
- A second loan of up to 4% of your loan, capped at $25,000, that you repay when you sell, refinance, or pay off your first mortgage.
To qualify you need a credit score of at least 620, income under CHFA’s limits for your county, at least $1,000 of your own money toward the purchase, and a CHFA-approved homebuyer education class.
CHFA’s FirstGeneration program offers $25,000 in down payment help, whatever the size of your loan, for buyers who have never owned a home and whose parents never owned one during the buyer’s lifetime. Every borrower on the loan has to be a first-time buyer, meaning no home owned in the prior three years.
metroDPA (City and County of Denver)
metroDPA is a second loan worth a percentage of your first mortgage (5% on an FHA loan, per the city’s page). No interest, no monthly payments. You repay it when you sell or refinance, when you move out, or after 30 years.
Income limits apply. Denver’s page lists $216,000 a year, which matches the program’s income sheet for FHA, VA, and USDA loans effective May 1, 2026. Boulder’s guide still shows an older $210,150. Conventional loans can have lower limits that vary by county, so the lender confirms the figure for your loan. metroDPA covers Denver and participating cities, towns, and unincorporated areas in Adams, Arapahoe, Boulder, Broomfield, Douglas, Elbert, Jefferson, Larimer, and Weld counties. Denver’s metroDPA page links the full list of participating cities and counties.
City of Boulder
Boulder runs its own programs. H2O is a second loan of up to $100,000 for buyers with limited savings who are buying a market-rate home inside Boulder city limits. The city’s guide also lists the Solution Grant for select permanently affordable homes in the city, and the Local Change Foundation’s $10,000 grant, which requires a mortgage through Elevations Credit Union and income under 80% of the area median.
How to use these programs
Take the education class early. Pick a participating lender, since not every lender works with every program. Then expect the same underwriting as any other loan: income, credit, debts, savings.
The tradeoffs
A second loan is still debt. It doesn’t cost you anything month to month, but it comes due when you sell or refinance, and that changes the math if you expect to do either within a few years. A grant doesn’t. If you’re choosing between a grant and a larger second loan, run both against how long you plan to stay.
Buyers in Arvada and Berkeley have used CHFA to close the gap between what they’d saved and a 5% down payment. Brett can introduce you to lenders who work with these programs and receives nothing from them.
This is general information, not financial or legal advice. A participating lender confirms eligibility, and a tax professional can tell you how a forgivable second loan is treated.
Questions
Do I have to be a first-time buyer to use CHFA?
For the FirstGeneration program, yes: at least one borrower has to have never owned a home, with parents or guardians who didn't own one during that borrower's lifetime, and everyone on the loan has to be a first-time buyer (no home owned in the prior three years). For CHFA's other loans it depends on the program. Some are limited to first-time buyers and some aren't, and every one has income limits and a 620 minimum credit score.
Can I combine CHFA with metroDPA?
Usually not. CHFA's help comes with a CHFA first mortgage, and metroDPA's comes with a metroDPA first mortgage, so you generally pick one. Programs that both take a second-lien position usually can't stack. A participating lender knows which combinations work.
What happens to a second loan when I refinance?
It comes due. CHFA's second loan and metroDPA are both repaid when you sell, refinance, or pay off the first mortgage. Plan for that if you expect to refinance within a few years.
Where do I take the homebuyer education class?
CHFA lists approved classes, online and in person, on its site. Take it early; the certificate has to be in your file before closing.
This article is general information. A lender, attorney, or tax professional can tell you what applies to your situation.
