Buying your first home in Colorado can feel overwhelming, especially when you are trying to figure out which first-time home buyer programs actually apply to your situation.
Thank you for reading this post, don't forget to subscribe!Between state grants, city-level assistance, and closing cost help, it is easy to miss savings you already qualify for.
The Action Jackson Group has spent over 30 years guiding Denver-area buyers through exactly these decisions, and this guide breaks down the first-time home buyer programs that are available across Colorado today, from the state level down to your specific city or county.
What Counts as a First-Time Home Buyer in Colorado?
Most first-time home buyer programs in Colorado use a similar starting point: you generally qualify as a first-time buyer if you have not owned and occupied a primary residence in the past three years.
That definition matters because it opens the door to program benefits even if you owned a home much earlier in life. Eligibility for most programs comes down to a few key factors:
- Not having owned and occupied a primary residence in the past three years
- Meeting the program’s household income limit
- Staying under the program’s purchase price cap
- Meeting the minimum credit score requirement
Understanding this eligibility baseline before you start touring homes saves time and prevents disappointment later in the process.
Why Understanding First-Time Home Buyer Programs Matters Before You Start House-Hunting
Down payment and closing costs are usually the biggest barrier standing between a first-time buyer and a signed contract, and the right program can close that gap by tens of thousands of dollars.
Lori Jackson, lead realtor at The Action Jackson Group, spent nearly 18 years helping create and manage the mortgage department for one of Colorado’s largest locally owned banking organizations before moving into real estate.
That background in mortgage underwriting and quality control means buyers get guidance on first-time home buyer programs that goes beyond a basic checklist, since it comes from someone who has seen these programs from the lender’s side of the table.
“Nationally, first-time buyers made up a record-low 21 percent of all home purchases last year, according to the National Association of Realtors 2025 Profile of Home Buyers and Sellers,” which makes knowing your assistance options more important than ever in a competitive market.
State-Level First-Time Home Buyer Programs in Colorado
The Colorado Housing and Finance Authority, known as CHFA, runs the state’s primary first-time home buyer programs.
CHFA pair of affordable first mortgages with one of two down payment assistance options, detailed directly on the CHFA Down Payment Assistance page, and choosing correctly between them can affect your monthly payment for years.
CHFA Down Payment Assistance Grant
“This provides up to the lesser of $25,000 or 3 percent of your first mortgage amount, as outlined on the CHFA Down Payment Assistance page,” and it never has to be repaid.
Because it is a true grant rather than a loan, buyers who qualify often use it to cover the down payment without adding a second monthly obligation.
CHFA Down Payment Assistance Second Mortgage
“This offers up to the lesser of $25,000 or 4 percent of your first mortgage, per the same CHFA program page, structured as a deferred-payment loan rather than a grant.”
This option can make sense if you want a slightly larger assistance amount and are comfortable repaying it later, typically when you sell, refinance, or pay off the home.
A knowledgeable buyer’s agent can help you compare the grant against the second mortgage based on how long you plan to stay in the home.
City- and County-Level First-Time Home Buyer Programs in Greater Denver
Most guides to first-time home buyer programs stop at the state level, but Greater Denver buyers have additional layers of assistance available closer to home. Combining a city or county program with CHFA is often possible and can meaningfully change what you can afford.
Denver MetroDPA
A down payment assistance program open to buyers across much of the Front Range, not just the City of Denver.
According to the City and County of Denver’s metroDPA program page, “households earning up to $216,000 a year with a credit score of 640 or higher may qualify for a percentage of their loan amount toward down payment and closing costs.”
County-Level Down Payment Options Across the Metro
“Colorado’s Department of Local Affairs channels state down payment assistance funding through local governments and nonprofit partners across the metro,” which is how many county-specific first-time home buyer programs get funded in the first place.
Because these programs are administered locally, availability and terms can differ from one county to the next, which is exactly the kind of detail a Denver-based agent should walk through with you directly rather than leaving you to piece together on your own.
How to Know Which First-Time Home Buyer Program Fits Your Situation
With multiple first-time home buyer programs potentially available at the same time, the right combination depends on your income, credit profile, how long you plan to stay in the home, and the type of mortgage you are using.
The Action Jackson Group connects clients with trusted mortgage professionals and draws on Lori Jackson’s underwriting background to help match buyers to the programs that fit their actual numbers, not just a generic list.
“The Colorado Division of Real Estate also confirms that working with a licensed real estate professional is one of the most effective ways to navigate this process with confidence,” since agents can flag stacking rules and program conflicts before you are far into a transaction.
Community Hero Savings: Stacking the Hero Rebates Program With First-Time Home Buyer Programs
If you serve your community, you may be able to combine state and local down payment assistance with The Action Jackson Group’s Hero Rebates Program, which offers rebates and savings at closing for qualifying buyers. Eligible groups include:
- Veterans (retired or separated)
- Nurses
- Teachers
- First responders
- Firefighters
- Police officers
- Military members (retired or separated)
- Worship leaders
For a first-time buyer who already qualifies for a CHFA grant or metroDPA assistance, stacking Hero Rebates savings on top of these first-time home buyer programs can meaningfully lower the total cash needed at the closing table.
Step-by-Step: How The Action Jackson Group Helps First-Time Buyers Use These Programs
Every first-time buyer’s path through first-time home buyer programs looks a little different, but the process with The Action Jackson Group generally follows the same rhythm:
- Start with a free market consultation to understand your goals and budget
- Review which state and local first-time buyer programs you likely qualify for
- Get a warm introduction to a trusted mortgage professional
- Receive hands-on guidance through every offer, inspection, and closing detail
With more than 30 years serving Denver-area buyers and sellers, the team has built this process specifically so first-time buyers never feel like they are navigating financing and paperwork alone.
Frequently Asked Questions About First-Time Home Buyer Programs in Colorado
Q1. Can I combine CHFA assistance with Denver metroDPA?
In many cases, buyers can layer state-level CHFA assistance with a local program like metroDPA, though exact stacking rules depend on your lender and loan type, so confirm the specific combination with your mortgage professional before writing an offer.
Q2. Am I still qualified as a first-time buyer if I owned a home years ago?
Generally yes. Most first-time home buyer programs in Colorado use a three-year look-back, so if you have not owned and occupied a primary residence in the past three years, you likely still qualify.
Q3. Are Hero Rebates available on top of down payment assistance programs?
Yes, for buyers who qualify as a veteran (retired or separated), nurse, teacher, first responder, firefighter, police officer, military member (retired or separated), or worship leader, Hero Rebates savings can typically be combined with state and local down payment assistance.
Q4. Do first-time home buyer programs cover closing costs, not just the down payment?
Many do. Both the CHFA grant and second mortgage can be applied toward closing costs as well as the down payment, and metroDPA funds can often be used the same way.
Ready to Explore First-Time Home Buyer Programs in Denver?
You do not have to sort through every first-time home buyer program on your own.
The Action Jackson Group offers a free market consultation and free home valuation to help you understand exactly where you stand, then connects you with trusted mortgage professionals who know these programs inside and out.
Call The Action Jackson Group at (303) 910-8505 or reach out at info@actionjacksonrealestate.com to start the conversation and take the first confident step toward owning your first Denver-area home.
