Colorado Home Loan Programs for Veterans

The Colorado Housing Finance Authority (CHFA) provides access to affordable homes for those with qualifying military service, those who meet income and purchase-price limits, and first-time home buyers.

Those who have not owned a home in the last three years may qualify as first-time buyers, and those who are not first-time home buyers may still qualify if they purchase within certain zones.

CHFA programs include income caps set by the county and, in some instances, by household size. Not all programs feature specific limit breakdowns by household size, but those that do will find income caps split between homes with one or two people and homes with three or more occupants.

Depending on the program, you may be restricted from having more than one CHFA loan at a time.

CHFA FirstStep Programs for First-Time Buyers and Veterans

CHFA FirstStep and FirstStep Plus are designed for:

• First-time home buyers
• Buyers who are purchasing in targeted areas
• Qualified veterans (who may be treated as first-time buyers)

These programs offer 30-year fixed-rate FHA loans with affordable interest rates. Borrowers may also apply for an optional CHFA Second Mortgage Loan to help cover down payment and closing costs.

Credit and Financial Requirements

Loans are issued through participating lenders and must meet the FHA mortgage guidelines. While FHA permits credit scores as low as 580 for maximum financing, CHFA requires a minimum 620 FICO score for scored borrowers. Applicants without a credit score may still be considered. Individual lenders may apply stricter standards.

Income and purchase price limits apply, and loans are subject to credit approval. Borrowers must make a minimum personal contribution of $1,000, which may come from an acceptable gift source.

Eligible Properties and Occupancy Rules

Eligible properties include single-family homes (attached or detached), PUDs, condominiums, and manufactured homes on a permanent foundation. All homes must be owner-occupied primary residences; investment properties are not permitted.

The program does not allow co-signers or non-occupying co-borrowers, and individuals not financially obligated on the loan may not be permitted on title. Only real property qualifies, meaning RVs, houseboats, and similar purchases are not eligible.

Because these loans are FHA-backed, standard FHA rules also apply, including occupancy requirements and mortgage insurance guidelines.

CHFA SmartStep Programs Including VA Loans for Veterans

These CHFA loans are provided to veterans, first-time home buyers, and non-first-time buyers alike. VA mortgages are included in the list of eligible government-backed loan programs available via CHFA SmartStep/SmartStep Plus.

Requirements include a minimum FICO score of 620, though borrowers with no credit score may apply. These are 30-year fixed-rate mortgages featuring:

• The option of a CHFA down payment assistance (DPA) grant OR
• The option of a CHFA DPA second mortgage loan for down payments, closing costs, and prepaid expenses
• Income limits apply
• Loan qualifying income calculations are required
• Purchase loans only-no refinances

Program rules for SmartStep and SmartStep Plus mortgages state that income limits vary and depend on household size, county, targeted versus non-targeted homes, and other factors.

According to the CHFA official site, the maximum loan amount is set as “the lower of $806,500 or the amount determined by FHA,” including mortgage insurance premiums that have been financed up front. A minimum borrower contribution of $ 1,000 is required for this program.