Good news for Colorado buyers: the state has a genuine grant. CHFA offers a down payment assistance grant of up to 3% of your loan that you never repay — a real rarity among state housing programs.
This guide covers what actually counts as grant money for first-time buyers in Colorado in 2026 — the help that does not have to be repaid, the truth about the federal grant everyone asks about, and how to find and qualify for it.
Are there really first-time home buyer grants in Colorado?
Here is the honest answer most sites skip: a true grant is money you never repay, but the majority of what gets marketed as a “first-time home buyer grant” is actually a forgivable loan — a second mortgage that is written off over time as long as you stay in the home. The practical difference is small if you plan to stay put, but it matters if you might sell or refinance early. Colorado’s housing agency (CHFA) is one of the states that offers an actual grant, alongside a larger repayable second for buyers who need more.
For the full difference between grants, forgivable seconds, and deferred loans, our national guide to down payment assistance breaks it down.
Colorado grant and forgivable-money programs
Here is the grant and forgivable money available in Colorado:
- CHFA Down Payment Assistance Grant — a true grant of up to 3% of the first mortgage amount — no repayment, applied straight to your down payment and closing costs
- CHFA Second Mortgage Loan — a repayable or deferred alternative for buyers who need more than the grant (up to 4%, or up to $25,000 through HomeAccess Plus)
- metroDPA Social Equity (Denver) — a forgivable second of $15,000 or $25,000 for residents or descendants of Denver neighborhoods redlined between 1938 and 2000
This page focuses on the no-repay and forgivable money. For the full menu — including deferred loans, below-market mortgages, and the Mortgage Credit Certificate — see our complete guide to Colorado first-time home buyer programs.
The $25,000 first-time buyer grant — is it real?
You have probably seen ads for a “$25,000 first-time home buyer grant” or a “$15,000 first-time buyer tax credit.” Here is the truth as of 2026: both come from proposed federal bills (the Downpayment Toward Equity Act and the First-Time Homebuyer Tax Credit Act) that have not become law. No one can give you that $25,000 federal grant today, in Colorado or anywhere else, because it does not exist yet — so be cautious with any site or “lender” that promises it. We track the real status on our explainer of the $25,000 first-time home buyer grant. The good news: the Colorado programs above are real, available now, and often just as valuable.
How to qualify for a grant in Colorado
Grant and forgivable programs in Colorado share a familiar set of rules:
- Income limits. CHFA sets income limits by county and program; the grant is available across its loan products.
- First-time status. CHFA’s FirstStep and HomeAccess programs require first-time status (waived in targeted areas and for veterans); its Preferred conventional option does not.
- Homebuyer education. Nearly every grant program requires a short course, usually free and often online.
- A participating lender. Grants are delivered through approved lenders, not the agency directly, so ask which programs a lender offers — and check our guide to credit score requirements to be sure you qualify for the underlying loan.
- Primary residence. The home must be the one you live in, not an investment property.
How to find down payment grants in Colorado
Ask a CHFA-participating lender specifically about the down payment assistance grant (not just the second mortgage) — it is the option you never repay.
Several Colorado cities also run their own grant and forgivable programs on top of the state help — see our city guides for Denver.
And before you count on any figure, remember that grant funding runs in cycles and can be exhausted, so always confirm current availability with the program. Our first-time home buyer checklist keeps the rest of your purchase on track.
Colorado first-time buyer grants FAQ
Do first-time home buyer grants in Colorado have to be repaid?
The CHFA Down Payment Assistance Grant does not have to be repaid — it is a true grant. If you instead take the CHFA Second Mortgage (for a larger amount), that is a loan you repay or defer. So in Colorado you genuinely have a no-repay grant option, which is unusual.
Is there a $25,000 grant for first-time buyers in Colorado?
Not currently. The $25,000 figure comes from a proposed federal bill (the Downpayment Toward Equity Act) that has not become law, so it is not available in Colorado or any state today. What is available are Colorado’s real grant and forgivable programs described above, plus the statewide options in our Colorado programs guide.
Who qualifies for down payment grants in Colorado?
CHFA’s FirstStep and HomeAccess programs require first-time status (waived in targeted areas and for veterans); its Preferred conventional option does not. CHFA sets income limits by county and program; the grant is available across its loan products. You will also complete a homebuyer education course and use a participating lender.
How much is the Colorado CHFA grant?
The CHFA Down Payment Assistance Grant provides up to 3% of your first mortgage amount — for example, about $9,000 on a $300,000 loan — with no repayment. If you need more, the CHFA Second Mortgage can add up to 4% (or up to $25,000 through HomeAccess Plus), but that is a loan rather than a grant. A CHFA lender can confirm the current grant percentage and your eligibility.