CHFA FirstStep

Colorado Housing and Finance Authority first-time buyer program with a 30-year fixed FHA mortgage. Pairs with CHFA DPA Grant (up to 3% of first-mortgage amount) or CHFA Second Mortgage Loan (up to 4% of first-mortgage amount, 0% deferred). Income and purchase-price limits vary by county.

What the money can be used for

Funds are advanced at closing as a recorded second lien with no monthly payment, applied to your down payment and closing costs, and repaid when you sell, refinance or pay off the first mortgage.

• Down payment on an owner-occupied purchase.
• Closing costs and prepaid items, where the administering agency permits it — confirm the split before you write an offer.
• The home must be your primary residence. Investment and second homes are not eligible.
• Funds are delivered at the closing table. They cannot pay your earnest money deposit, inspection or appraisal up front.
• Assistance cannot be taken as cash back at closing; anything left over is normally applied to the loan balance or returned to the program.

Steps to get this program

1. 1

   Confirm the property location qualifies

   Confirm the property sits inside the program's service area, which is defined by the address rather than by where you live now.

2. 2

   Check the income limit for your county and household size

   Qualifying income must fall at or below the program's published cap, which is set by county and often adjusted for larger households. Check this year's table before anything else — it is the most common disqualifier.

3. 3

   Confirm your first-time buyer status

   You generally qualify if you have had no ownership interest in a primary residence for the previous three years. Veterans and buyers purchasing in federally targeted areas are frequently exempt — ask whether an exemption applies to you.

4. 4

   Confirm credit and first-mortgage eligibility

   This program sets a minimum credit score of 620. Your first mortgage carries its own minimum, and the higher of the two governs your file.

5. 5

   Get pre-approved with a participating lender

   Assistance is delivered through the first mortgage, so it has to be originated by a lender approved for this specific program. Confirm participation in writing before you go under contract.

6. 6

   Complete homebuyer education

   Check whether an approved homebuyer education certificate is required. Most programs require one, and it is always a closing condition when they do.

7. 7

   Reserve the funds

   Assistance allocations are finite and are reserved by your lender, usually once you are under contract. Eligibility alone does not secure money — the reservation does.

8. 8

   Close and keep your documents

   You will sign a note and a second mortgage at closing alongside your first mortgage. Keep the recorded documents — you will need them to refinance, request forgiveness or sell.

Is this program right for me?

Program details

Administered by

CHFA · chfainfo.com

Where it applies

Colorado

Assistance amount

up to 4%

Minimum credit score

620

Income limit

$12,500 per month ($150,000 per year), before adjustments

First-time buyer required

Yes (typically no ownership in the past 3 years)

Compatible first mortgages

FHA

Occupancy

Owner-occupied primary residence only

Funding status

Unconfirmed — verify with the administrator

Program terms are set and changed by the administering agency without notice to us. This page is educational and is not an approval, a commitment to lend, or a guarantee that funds are available. Simply Approved Mortgages LLC does not administer this program unless it is explicitly identified as an in-house program.