Colorado CHFA Down Payment Assistance: DPA Income Limits

Colorado Housing and Finance Authority (CHFA) down payment assistance (DPA) programs are valuable resources for many Colorado homebuyers. To qualify, you must meet specific income limits, which are updated annually and vary by county and household size. These limits determine whether your household's income falls within the acceptable range for CHFA's DPA offerings, making them a critical first step in determining your eligibility for help with a down payment and closing costs.

How often do CHFA income limits change?

CHFA periodically updates its income limits, typically in late winter or early spring each year. These adjustments reflect changes in Area Median Income (AMI) data provided by the U.S. Department of Housing and Urban Development (HUD). CHFA publishes its current income limits on its official website; always confirm the limits in effect at the time you apply.

These updates are based on the latest HUD Section 8 income limits, which are often released in the spring. Understanding these changes is crucial because they directly impact who can qualify for CHFA DPA. A household that was slightly above the limit one year might find itself eligible the next if the limits increased, or vice-versa.

How do CHFA income limits affect Colorado homebuyers?

The practical effect of these income limits is that your household's total gross income must not exceed the specified maximum for your county and household size. If your household's annual gross income is above this threshold, you would not qualify for CHFA DPA in Denver County.

These limits vary significantly by location. It's important to check the specific limits for the county where you plan to purchase your home.

Your household's income includes all income from all adult household members who will live in the home, even if they are not on the mortgage. This typically includes salaries, wages, overtime, commissions, bonuses, and certain other types of income before taxes and deductions.

Understanding CHFA's first-time homebuyer definition and program types

CHFA programs often cater to first-time homebuyers, though some programs have exceptions. A "first-time homebuyer" for CHFA purposes is typically defined as someone who has not owned a home in the past three years. If you meet this definition, you may be eligible for CHFA's various DPA options.

CHFA offers several types of DPA, which can include repayable second mortgages. These generally combine with a CHFA first mortgage loan, which can be an FHA, VA, USDA, or conventional loan. The assistance is usually a fixed percentage of the first mortgage loan amount, such as 3% or 4%, but terms, rates, and APR vary by lender and program. This aid can help cover your down payment and, in some cases, closing costs. You can learn more about how DPA works and the different structures available on our website, such as through this guide on how DPA works.

The wholesale-lender DPA offered through Simply Approved Mortgages is a repayable fixed-rate second mortgage (terms, rates and APR vary by lender and program). This can be an alternative or complement to other DPA options, depending on your qualifications. It is essential to understand that a repayable second mortgage is a loan that must be paid back, typically alongside your first mortgage. It is not a grant or "assistance funds."

CHFA homebuyer education and purchase price limits

Beyond income limits, CHFA programs often require you to complete a homebuyer education course. This requirement helps ensure you are well-prepared for the responsibilities of homeownership. The course covers topics like budgeting, credit, and maintaining your home.

CHFA programs also have maximum purchase price limits. These limits vary by county and are also updated periodically. Your potential home's purchase price must not exceed this amount for your specific county to qualify for CHFA DPA. You can also explore options to combine FHA and DPA programs by checking out our information on Colorado FHA down payment assistance.

It’s advisable to consult the CHFA website directly or speak with a knowledgeable mortgage professional to confirm the most current income and purchase price limits for your specific situation. This ensures you have the most up-to-date information when planning your home purchase.

Expert insight from Simply Approved Mortgages

Many Colorado homebuyers are surprised by how much income is counted towards CHFA's limits. We've seen situations in Jefferson County and Arapahoe County where even part-time or seasonal income for all adult household members can push a family just over the threshold. It's not just about the primary earner; CHFA looks at the complete financial picture for everyone residing in the home.

What is area median income (AMI)?

Area Median Income (AMI) is the midpoint of a region's household income distribution, meaning half of the households in that area earn more and half earn less. It is calculated annually by the U.S. Department of Housing and Urban Development (HUD) and is used to determine eligibility for various housing assistance programs, including CHFA's DPA.

Does CHFA offer grants for down payment assistance?

CHFA primarily offers down payment assistance in the form of repayable second mortgage loans, which must be paid back. While some housing programs nationwide may offer grants, CHFA's typical DPA structure for its main programs in Colorado involves a loan that you repay alongside your first mortgage.

How often do CHFA income limits change?: More Resources

CHFA income limits are typically updated once a year, usually in late winter or early spring, after the U.S. Department of Housing and Urban Development (HUD) releases its new Section 8 income limits. It's always best to check the official CHFA website for the most current figures.

Can I still qualify for CHFA DPA if I'm not a first-time homebuyer?

While many CHFA programs target first-time homebuyers (defined as someone who hasn't owned a home in the past three years), some CHFA programs may have exceptions or offer options for non-first-time homebuyers, particularly in certain targeted areas. You should check the specific program details on the CHFA website or consult with a mortgage professional for accurate information.

What happens if my income is slightly above the CHFA limit?

If your household's total gross income exceeds the CHFA income limit for your specific county and household size, you would not qualify for CHFA's down payment assistance programs. You might need to explore other DPA options, such as the wholesale-lender DPA offered through Simply Approved Mortgages, which may have different eligibility criteria.

Related Down Payment Assistance Resources

• Get my estimate
• down payment assistance calculator
• down payment assistance guide
• types of down payment assistance

Last updated: 2026

Related reading

• Understanding Down Payment Assistance: Proven Income, Limits
• First-Time Homebuyer Definition And DPA

Frequently Asked Questions

What are the income limits for CHFA down payment assistance in Colorado?

CHFA down payment assistance programs have specific income limits that vary by county and household size. Your household's total gross income must not exceed the maximum for your specific county and household size to qualify. These limits are updated annually and are published on the administering agency's official website.

How are CHFA income limits determined and updated?

CHFA income limits are based on Area Median Income (AMI) data provided by the U.S. Department of Housing and Urban Development (HUD). These limits are typically updated once a year, usually in late winter or early spring, reflecting changes in the HUD Section 8 income limits. It's crucial to check the current figures on the administering agency's website.

What types of income are counted towards CHFA income limits?

CHFA counts the total gross income of all adult household members who will reside in the home, even if they are not on the mortgage. This typically includes salaries, wages, overtime, commissions, bonuses, and certain other types of income before taxes and deductions. It's important to understand that seasonal or part-time income also contributes to this total.

Do CHFA DPA programs have purchase price limits for homes?

Yes, in addition to income limits, CHFA programs also have maximum purchase price limits for eligible homes. These limits vary by county and are updated periodically. The home you wish to purchase must not exceed the specified maximum for your county to qualify for CHFA DPA.

Does CHFA offer grants for down payment assistance?: More Resources

CHFA primarily offers down payment assistance in the form of repayable second mortgage loans, not grants. These loans must be paid back, typically alongside your first mortgage. While some housing programs may offer grants, CHFA's typical DPA structure involves a loan.

What is the definition of a "first-time homebuyer" for CHFA programs?

For CHFA purposes, a "first-time homebuyer" is generally defined as someone who has not owned a home in the past three years. While many CHFA programs cater to this definition, some programs may have exceptions. Meeting this criteria is often a prerequisite for eligibility.

What are the first steps to determine if I qualify for CHFA DPA based on income?

To determine if you qualify, your first step is to check the specific income limits for the county where you plan to buy a home, considering your household size. You should consult the administering agency's official website or speak with a knowledgeable mortgage professional for the most current figures. Your household's total gross income must not exceed these limits.

Sources

• HUD homebuyer assistance guidance
• CFPB Owning a Home buyer guide

These government publications are cited for general consumer education and for FHA/agency program background only. The repayable second mortgage available through Simply Approved Mortgages is a wholesale lender's product, brokered by Simply Approved Mortgages — it is not a grant, it is not the brokerage's own program, and it is not governed by HUD, FHA, or state housing finance agency rules; its terms are set by the wholesale lender. Simply Approved Mortgages (NMLS #2620881) is a mortgage broker and is not HUD, FHA, Florida Housing Finance Corporation, CHFA, or the CFPB, and is not affiliated with or endorsed by any government agency.

Rate, APR and payment disclosure. Any rate, APR, payment, or cost figure in this article is illustrative and for education only. It is not a quote, not an approval, and not a commitment to lend. Your actual rate, APR, payment, loan amount, term, and costs depend on lender underwriting, credit, occupancy, property type, loan-to-value, and market pricing, and are subject to underwriting and change. The expressed interest rate shown could change or may not be available at the time of loan commitment or lock-in. Simply Approved Mortgages LLC | NMLS #2620881 | 877-813-7219 | Equal Housing Opportunity. Residential mortgage services are offered only in Florida and Colorado.