Buying a home along the Colorado Front Range can feel like a lot at first.
Most buyers are trying to answer the same questions: Do I qualify for down payment assistance? What credit score do I need? How much money do I actually need upfront? Do I make too much money for down payment assistance? This page breaks the main requirements down for buyers in Fort Collins, Loveland, Greeley, Windsor, Wellington, Longmont, Thornton, Northglenn, Westminster, Wheatridge, Littleton, Broomfield, Arvada, Brighton, Boulder, Erie, Louisville, Denver, Highlands Ranch, Aurora, and surrounding communities all the way down to Colorado Springs..
The primary Colorado down payment assistance requirements
While the exact rules depend on the loan and assistance program, these are the big things most buyers in Colorado should expect.
1. Credit score
A 620 credit score is the benchmark for down payment assistance programs. There are some other options for some buyers with lower scores, from 600 or no traditional credit score. If you are at or above 620, you are in a much stronger position for many Colorado downpayment assistance options, and if you are below that, it is still worth checking what other options there are.
2. Income limits
The Colorado down payment assistance programs have upper-income limits. Depending on where you want to buy in Colorado there are options for income all the way up to $215K per year. There is no minimum income requirement to purchase a home, however your income will need to be enough to qualify for a home purchase price.
3. Homebuyer education
Some of the down payment assistance programs require you to complete a homebuyer education course before closing. This matters more than you may think!. It is not just a box to click; it is also a critical part of learning what is entailed in home ownership going forward.
4. Primary residence
These programs are built for people buying a home to live in as their primary residence, not an investment property. The property must be owner-occupied.
5. Loan approval and affordability
Qualifying is not just about your credit score. Lenders also look at your income, debts, monthly payment, and overall affordability. Part of the pre-approval process will calculate your debt-to-income ratio which will help determine how much home you will be able to purchase and how much your monthly mortgage payment will be.
How much money do you need upfront?
You may think that buying along the Colorado Front Range requires a huge amount of upfront cash to purchase a home. This is not true due to the current market that we are in. There are closing costs associated with purchasing a home which can be substantial. These are costs related to fees, loan interest, insurance policy premiums, FHA origination fee, and many other prepaid items. This will generally total to about 2% of the purchase price. So if you were to buy a $400,000 home this would be about $8,000 that you would be responsible for paying at closing. The good news is we will negotiate with the seller to pay for your closing costs, in part or in full, so you don’t have to bring that money to closing. The down payment assistance programs do require that you have at least $1,000 toward the purchase price of your home. We will also help schedule an inspection of your home to make sure there are no issues from the roof down to the sewer lines. This inspection costs about $500. In the end, you should expect to need at a minimum of about $1,500 to get into your new home.
What kinds of programs might you qualify for?
There are many different programs that offer down payment assistance. The most popular programs in Colorado are offered by CHFA which provide up to $25,000 in down payment funds. The two primary CHFA options:
- 4% down payment assistance as a 0% interest second mortgage (must be paid back when you sell or refinance)
- 3% grant option (never has to be paid back)
- There are additional programs for first-generation home buyers and home buyers with a disability or caregivers for loved ones with disability.
Colorado down payment assistance requirements along the Colorado Front Range
If you are buying in Fort Collins, Loveland, Windsor, Greeley, Berthoud, Longmont, Boulder, or anywhere along the Front Range, the statewide rules are still the starting point, but local conditions matter too. Home price, taxes, insurance, and how competitive the market is in your part of Colorado all affect what you can comfortably afford and what type of loan makes sense. That is why buyers do better when they look at both sides at the same time:
- the program rules
- the local market and payment
What if you do not qualify yet?
Not qualifying today does not mean you cannot buy soon. The most common reasons buyers are not ready yet are:
- credit score is too low
- debt is too high
- income documentation is incomplete
Purchasing a home can sometimes be more like a marathon, than a sprint. It may take you a while to pay down debt, increase your credit score, whatever it takes to get you to qualify. We will assist you all along the way, so you know what to do and help give a realistic timeline of how long it will take for you to be a homeowner.
The easiest way to find out if you qualify
The fastest way to know where you stand is to look at your real numbers:
- credit
- income
- debts
- target payment
- location you want to buy in
From there, you can see whether you may qualify for down payment assistance, what kind of first mortgage makes sense, and how much cash you may actually need to get into a home in Northern Colorado.
Find Out If You Qualify as a First-Time Home Buyer in Colorado
If you are ready start the process to buy along the Front Range, we can help you understand the requirements, look at your numbers, and see what down payment assistance programs in Colorado may fit your situation .
Start your eligibility check now or call/text 303.459.4220 to speak with our team.
FAQ
What credit score do I need to buy a house in Colorado as a first-time buyer?
For many CHFA-backed programs, 620 is the common benchmark, though some buyers without a traditional score may still have options. If you are below that, it is still worth checking whether you can improve your score and qualify later.
Do I have to be a first-time home buyer to get help in Colorado?
For many programs, yes, but not always. There are many options for different situations, including buyers who have owned in the past.
Do I need to take a class before buying?
Usually, yes. CHFA says borrowers must complete a CHFA-approved homebuyer education course before closing.
How much down payment assistance can I get in Colorado?
It depends on the program but between $3,600 to $25,000 is standard.
How much money do I need saved to buy my first home?
That depends on the program that fits you best. We will look at all the options, but at a minimum, you should expect to get started with about $1,500 ($1,000 toward the purchase price of your home and about $500 for the inspection).
Are there income limits for first-time home buyer programs in Colorado?
Yes. There are income limits by program and county, so it depends on where you want to buy and which loan or assistance option you are using. There are options up to $215K income.