The #1 reason Colorado buyers delay homeownership is down payment accumulation — not income. DPA programs solve exactly this. Colorado's options are substantial.
CHFA FirstStep
CHFA FirstStep is a 30-year fixed FHA loan for first-time buyers, qualified veterans, or buyers in targeted areas. FirstStep Plus adds a second mortgage of up to the lesser of 4% of the first mortgage or $25,000: 0% interest, no monthly payment, repaid on sale, refinance, payoff of the first mortgage, or when the home is no longer your primary residence. Higher interest rates apply when you take assistance. Income and purchase price limits apply — confirm current limits with CHFA. Every borrower must complete CHFA-approved homebuyer education before closing.
CHFA SmartStep & Preferred
SmartStep pairs with FHA, VA or USDA-RD; SmartStep Plus offers a grant of up to 3% or a second mortgage of up to 4% of the first mortgage (each capped at $25,000). Preferred uses conventional financing; Preferred Plus offers the second mortgage. Both use a statewide $178,920 income limit and are open to repeat buyers.
Metro-Area DPA
Metro Mortgage Assistance Plus: Denver metro buyers under 100% AMI — 4% of purchase price as forgivable grant after 3 years. City of Denver LIFT: Forgivable loans up to $15,000 in targeted neighborhoods. Aurora Housing Authority: Local DPA — coordinate during pre-approval.
Employer-Assisted Housing
UCHealth, NREL (Golden), Denver Public Schools, and others offer housing benefits. Ask HR — more common than people realize.
Federal: MCC
CHFA's Mortgage Credit Certificate converts a portion of annual mortgage interest into a federal tax credit. It may combine with some CHFA loans, but not with CHFA FirstStep or FirstGeneration. Confirm eligibility and tax benefits for your situation.
Real Stacking Example
Pueblo County buyer, $72,000 income, 660 credit, $295,000 home: with CHFA FirstStep Plus, the roughly $284,700 FHA loan supports a second mortgage of up to about $11,400 — enough to cover the $10,325 down payment. A seller concession can help with closing costs. CHFA requires at least $1,000 of the buyer's own money (a gift is allowed), and FirstStep can't be combined with an MCC. Actual cash to close depends on final costs and credits.
We identify every stackable program during pre-approval at no charge. Contact Tayton Capital or apply now.
📧 tj@taytoncapitalllc.com
📞 970-708-9624
Get help with buyer guide
Talk to a licensed broker or explore the program that fits this article.
Frequently asked questions
What is the income limit for CHFA in Colorado?
CHFA SmartStep and Preferred use one statewide income limit — $178,920 in CHFA's current materials — regardless of county or household size. FirstStep, FirstGeneration and other programs have their own limits; confirm current limits with CHFA.
Is CHFA down payment assistance a grant or a loan?
Both exist. CHFA SmartStep Plus offers a grant of up to the lesser of 3% of the first mortgage or $25,000 that is not repaid. CHFA also offers a second mortgage of up to the lesser of 4% or $25,000 — 0% interest, no monthly payment, repaid on sale, refinance, payoff of the first mortgage, or when the home is no longer your primary residence.
Can I use DPA programs with a VA loan?
Some DPA programs pair with VA, though many are designed for FHA or conventional. We identify VA-compatible programs in your county.
Can I stack the MCC with CHFA first and second mortgages?
Sometimes. The MCC can combine with some CHFA loans, but not with CHFA FirstStep or FirstGeneration. Confirm program compatibility before counting on both.
Related articles
First-Time Homebuyer Guide for Western Colorado in 2026
A complete guide for first-time buyers purchasing homes in Durango, Montrose, Grand Junction, Cortez, Glenwood Springs, and surrounding Western Slope communities. CHFA, FHA, VA, USDA explained. Tayton Capital, NMLS #2106875.
Read articleMoving to Montrose, CO in 2026 — A Mortgage and Real Estate Guide
Everything you need to know about buying a home in Montrose, Colorado — median prices, neighborhoods, loan types, and why the Western Slope's most affordable major market is attracting buyers from across Colorado.
Read article2026 First-Time Homebuyer Guide: Cortez & Montezuma County, Colorado
How to buy your first home in Cortez, CO — USDA 0% down, FHA, manufactured home financing, down payment assistance, and what to expect from the process in 2026.
Read article2026 First-Time Homebuyer Guide: Mancos, Colorado
Everything a first-time buyer needs to know about buying a home in Mancos, CO — USDA 0% down, FHA, manufactured home financing, and what to expect from the process.
Read articleFirst-Time Homebuyer Guide: Gunnison & Crested Butte, Colorado 2026
Gunnison is the affordable gateway to Crested Butte — a working ranch and university town where first-time buyers can find homes under $500,000 with mountain access.
Read articleFirst-Time Homebuyer Guide: Woodland Park & Teller County, Colorado 2026
Woodland Park is Colorado Springs' mountain suburb — 8,500 feet elevation, Pikes Peak views, and home prices below the Denver metro. Here's the 2026 first-time buyer guide.
Read articleFirst-Time Homebuyer Guide: Spring Hill & Hernando County, Florida 2026
Spring Hill is one of Tampa Bay's most affordable suburbs — with Gulf access, Weeki Wachee Springs, and home prices under $330,000 for most entry-level buyers in Hernando County.
Read articleFirst-Time Homebuyer Guide: Homestead & South Miami-Dade, Florida 2026
Homestead and South Miami-Dade offer Miami-area access at a fraction of the price — with FHA loan limits that cover the market and agricultural character unlike anywhere else in Florida.
Read article