Colorado First-Time Home Buyer Guide: 2023 Programs and Grants

Buying a first home in Colorado in 2023 has become increasingly challenging as home prices and mortgage rates remain elevated. To help residents bridge the affordability gap, the Colorado Housing and Finance Authority (CHFA) continues to administer a suite of first-time homebuyer programs designed to lower upfront costs and expand access to homeownership across the state.

CHFA's core mortgage options in 2023 include the CHFA FirstStep and CHFA FirstStep Plus programs, which pair a 30-year fixed-rate FHA loan with down payment assistance for first-time buyers, qualified veterans, and buyers purchasing in designated targeted areas. For conventional loan borrowers, the CHFA Preferred and CHFA Preferred Plus programs offer reduced mortgage insurance coverage and the option to combine the first mortgage with down payment assistance.

Down payment and closing-cost assistance is delivered through two main paths. The CHFA Down Payment Assistance Grant provides up to 3% of the first mortgage amount as a true grant that does not need to be repaid. The CHFA Down Payment Assistance Second Mortgage Loan offers a larger amount, up to 4% of the first mortgage, structured as a silent second with no monthly payment and repayment deferred until the home is sold, refinanced, or paid off.

To qualify in 2023, buyers generally must complete a CHFA-approved homebuyer education course, meet a minimum credit score (typically 620 for government loans and higher for conventional), contribute a minimum of $1,000 of their own funds, and fall within CHFA's income and purchase-price limits, which vary by county and household size. The home must be the buyer's primary residence.

CHFA also partners with local governments and nonprofits that layer additional assistance on top of CHFA loans, including metro Denver programs and rural initiatives targeting workforce housing. Prospective buyers are encouraged to work with a CHFA Participating Lender, who can run eligibility checks, explain current interest rates, and help stack grants with other local resources.

For Colorado households priced out of the conventional market, these 2023 CHFA programs remain one of the most accessible paths to a first home, reducing the cash required at closing and making monthly payments more manageable.