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Colorado’s First-Time Homebuyer Program

When you purchase your own home, you are carving out your own unique corner of the world. In doing so, you are also making a long-term investment into the surrounding neighborhood and community.

 
The Colorado Housing and Finance Agency (CHFA) embraces this vision of improving communities one household at a time. To support this goal, CHFA offers first-time homebuyer programs to help eligible borrowers achieve their dreams of homeownership.
 

First-Time Homebuyer Loans Available in Colorado

 
There are two first-time buyer programs available in Colorado. They are:
 
CHFA FirstStep. This program is open to qualified first-time homebuyers and features 30-year, fixed-interest mortgages. Borrowers must meet certain eligibility requirements, which are outlined in more detail below. These factors vary from one situation to another, so it is best to talk to an experienced CHFA-certified lender about your individual circumstances.
 
Also, the IRS Recapture Tax may apply when homes purchased under this program are sold. However, CHFA provides reimbursement to homeowners when this occurs.
 
CHFA FirstStep Plus. This program includes a second mortgage to be used for down payment and/or closing costs. This loan also features a 30-year term and the same fixed-interest rate applied to the first mortgage.
 
Eligibility Requirements for the CHFA FirstStep and the CHFA FirstStep Plus Programs
 
FirstStep and FirstStep Plus loans are available to qualified first-time homebuyers in Colorado.
 
To qualify as a first-time buyer under CHFA guidelines, borrowers and their spouses must not have had an ownership interest in their primary residence for the last three years. Exceptions to these first-time buyer restrictions are made for eligible military veterans, as well as for non-first-time buyers in federally mandated targeted areas.
 
To find out if you qualify for either of these programs, call today for a no-cost, no-obligation consultation with one of our experienced CHFA-certified mortgage consultants.
 
Additional Qualifications:
 
In addition to being a first-time homebuyer in Colorado, there are a number of additional qualifications required for the CHFA FirstStep or FirstStep Plus programs. These conditions include:
 
  • Borrowers must not exceed established income limits. These limits vary based upon household size and whether or not the property is located within a target area.
  • Purchase price limits for the property also cannot be exceeded. Again, these limits are partly based upon whether the home is located within a targeted area or not.
  • All CHFA programs require borrowers to complete an authorized Homebuyer Education Class.
  • Borrowers must contribute a minimum of $1,000 of their own funds toward the purchase of the home.
  • Homebuyers must possess a minimum credit score of 580.
 
No single loan program is right for every individual. For more information regarding Colorado’s FirstStep and FirstStep Plus mortgages (and to find out more about income and purchase price limits for your individual situation), talk to a qualified CHFA-certified lender today.
 
Ready to Take the “FirstStep” Toward Owning Your Own Home?