FHA loans in Colorado — 3.5% down, real flexibility.
The most popular first-time buyer program in Colorado. We pair FHA with CHFA and metro DPA programs to get buyers into homes with minimal cash to close.
Why FHA works in Colorado
- 3.5% down with a 580+ credit score (10% down from 500–579)
- More flexible credit and DTI guidelines than conventional
- 100% of the down payment can be gifted
- Sellers can contribute up to 6% toward closing costs
- Pairs with CHFA and metro DPA programs for near-zero out-of-pocket
FHA is especially powerful in mid-priced CO markets — Colorado Springs, Pueblo, Aurora, Thornton, Greeley, Loveland, Grand Junction — where loan amounts fit comfortably under the FHA county limit. In Denver metro and Boulder, FHA works for entry-level homes and condos.
2026 FHA loan limits — Colorado counties
| County | 1-Unit FHA Limit |
|---|---|
| Denver, Adams, Arapahoe, Broomfield, Douglas, Jefferson | $816,500 |
| Boulder | $919,000 |
| Larimer, Weld | $711,375 |
| El Paso (Colorado Springs) | $541,287 |
| Eagle (Vail), Garfield, Pitkin (Aspen) | $1,209,750 |
| Summit, Routt (Steamboat) | $1,149,825 |
| San Miguel (Telluride) | $1,149,825 |
| Most other CO counties (baseline) | $541,287 |
2–4 unit FHA limits are higher. Full CO loan limits →
Pair FHA with Colorado down payment assistance
CHFA's flagship programs (CHFA FirstStep, CHFA Preferred, and the CHFA DPA Grant) layer on top of FHA to cover the 3.5% down payment and a portion of closing costs. Denver and Boulder buyers can also stack metroDPA. Most first-time buyers we close are in for $1,500–$3,000 total out of pocket.
Colorado FHA loan FAQs
What's the minimum credit score for FHA in Colorado?+
580 with 3.5% down is standard, though we work with lenders that go to 500 with 10% down. Pricing improves significantly above 660, and best FHA pricing kicks in at 720+.
Can I use down payment assistance with an FHA loan in CO?+
Yes — FHA pairs well with CHFA, metroDPA (Denver/Boulder), and Adams County HOME programs. Some pairings can get you into a home with under $1,000 out of pocket.
Is FHA mortgage insurance permanent?+
On most FHA loans put down with less than 10%, yes — MIP runs for the life of the loan. The escape route is to refinance into conventional once you reach 20% equity and 680+ credit, which we help clients do regularly.
Can I buy a condo with FHA in Colorado?+
Yes, but the condo project must be FHA-approved or qualify via the single-unit approval (SUA) process. We can run the project for you before you write an offer.
What's the difference between FHA and CHFA?+
FHA is the loan program (insured by HUD). CHFA is a Colorado state agency that layers down payment assistance and grants on top of FHA, conventional, or VA — so FHA + CHFA is one of the most common first-time buyer combos in CO.
Can FHA be used on a 2–4 unit property?+
Yes — you must occupy one unit as your primary residence, but FHA on a duplex/triplex/fourplex is a powerful house-hacking tool in CO. The rental income from the other units helps you qualify.
Get pre-approved with FHA in Colorado
Free, no obligation. We'll show you FHA, conventional, and any DPA pairings side-by-side.