The Colorado Housing and Finance Authority offers potential homebuyers the CHFA FirstStep Plus, a down payment assistance program that works in conjunction with the CHFA FirstStep home loan. This program provides individuals with funds to help cover some of the upfront costs associated with a mortgage transaction. 

FHA Rates Near 50 Year Low!

Now is the time to drop the interest rate on your 30-year mortgage or refinance into a 15-year home loan.

FHA Rates for
Are You Watching Your Credit Score?

NOTICE: Some FHA mortgage lenders are substantially raising FICO score requirements during the Coronavirus crisis, even though FHA minimums remain unchanged.


- Improving Your Credit Score Has Never Been More Important -

Get started one
Get started two
Get started three
Get started four
FHA.com is a privately owned website, is not a government agency, and does not make loans.

Choose a Loan Type

FHA.com is a privately owned website, is not a government agency, and does not make loans.

CHFA FirstStep Plus

Financial Assistance for Homebuyers in Colorado

The Colorado Housing and Finance Authority offers potential homebuyers the CHFA FirstStep Plus, a down payment assistance program that works in conjunction with the CHFA FirstStep home loan. This program provides individuals with funds to help cover some of the upfront costs associated with a mortgage transaction. 


Available Assistance 
The FirstStep program includes a 30-year fixed rate FHA 203(b) purchase loan. Keep in mind that the FHA’s 203(k) loans are not permissible. Once borrowers are approved for an FHA home loan, they have the option to apply for the FirstStep Plus program that offers down payment assistance. This comes in the form of a second mortgage for up to 4% of first mortgage loan amount. The proceeds may go toward the down payment, closing costs, prepaids, and/or principal reductions. This is a zero-interest loan with no monthly payments required and no accrued interest. The second mortgage must be paid in full upon sale or refinance, or if the property is no longer the borrower’s primary residence. 


Eligibility Requirements 
To be eligible for the FirstStep Plus program, borrowers must be first-time homebuyers, that is persons who have had no ownership interest in a principal residence during the previous three years. A qualified veteran may be treated as a first-time homebuyer (follow FHA guidelines regarding borrower legal status). This requirement is for non-targeted areas. In targeted areas, the borrower does not need to be a first-time homebuyer. 

All borrowers and co-borrowers must complete an online or classroom-based homebuyer education course by a CHFA-approved provider, prior to the closing date. The CHFA also requires that applicants contribute a minimum of $1,000 from their own funds (gifts are allowed). 

Borrowers are required to have a minimum credits score of 620. However, applicants with NO credit scores are permitted; they may be manually underwritten provided all CHFA and FHA underwriting requirements have been met. The maximum DTI for borrowers with scores between 620 to 659 is 50%, and 55.00% for those with a score of 660 or above. The DTI should never exceed the lower of CHFA’s DTI limit, the DTI permitted by FHA, or the DTI limit determined by the AUS or manual underwriting guidelines. 


Property Guidelines 
Any property purchased with funds from the FirstStep Plus program must serve as the borrower’s primary residence. Eligible property types include single-family, one-unit, attached, or detached homes, PUDs, condominiums, and manufactured housing on a permanent foundation. The maximum loan limit for all mortgage loans is the lower of $510,400 or the amount determined by FHA. The total loan limit includes financed MIP 


Income Limits 
The program’s limits are subject to county, household size, targeted and non-targeted area designations as well as purchase price limits. Income and purchase price limits are available on the website at www.chfainfo.com.  

Note: This information was accurate at the time of publication and may no longer be current - visit the program website for updated information.  spacer

Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

Down Payment Grants in Colorado

The Colorado Housing and Finance Authority offers potential homebuyers the CHFA FirstStep Plus, a down payment assistance program that works in conjunction with the CHFA FirstStep home loan. This program provides individuals with funds to help cover some of the upfront costs associated with a mortgage transaction. 

The CHFS SmartStep Plus program helps homebuyers with down payment and closing cost assistance. The Colorado Housing and Finance Authority (CHFA) offers the program to eligible borrowers who need assistance with paying the high upfront costs of buying a house. 

The Metro Mortgage Assistance Plus Program is an initiative of Denver's Office of Economic Development. In order to help low and moderate income families get over the hurdle of making down payments, the program offers a grant to help pay the upfront costs.

The Turnkey Mortgage Origination Program offers low- to moderate-income homebuyers in El Paso County a 30-year, fixed-rate mortgage that comes with a down payment assistance grant of 4% of the mortgage amount.

SEE YOUR CREDIT SCORES   From All 3 Bureaus  

Do you know what's on your credit report?

Learn what your score means.


spacer
X Open Me

I am opened!

This is where the content goes