What is the CHFA income limit for El Paso County (Colorado Springs)?

For 2025-2026, El Paso County income limits are approximately $105,000 for 1-2 person households and $121,000 for 3+ person households under standard programs. Targeted area limits are higher. Always verify current figures at chfainfo.com.

Is CHFA down payment assistance a grant or a loan?

CHFA down payment assistance is a second loan, not a grant. It is typically structured at 0% interest but must be repaid when you sell the home, refinance, or pay off the first mortgage.

How much down payment assistance does CHFA provide?

CHFA typically provides up to 3% of the first mortgage amount as a second loan. On a $400,000 purchase, that's up to $12,000 — enough to cover most or all of a conventional down payment.

How long does it take to close using CHFA?

CHFA financing does not significantly extend closing timelines. Most buyers close within 30-45 days, similar to a standard purchase. The main additional step is completing the homebuyer education course, which can be done in a day.

CHFA Down Payment Assistance Colorado Springs

Q: Do I have to be a first-time homebuyer to use CHFA?

CHFA defines first-time buyer as someone who has not owned a primary residence in the past three years. Veterans are exempt from this requirement. Buyers in designated targeted areas may also qualify regardless of prior ownership.

Q: What is the CHFA purchase price limit for El Paso County?

For 2025-2026, the CHFA purchase price limit for El Paso County non-targeted areas is approximately $569,000. Targeted area limits are higher. Verify current limits at chfainfo.com.

Q: What credit score do I need for CHFA?

Most CHFA programs require a minimum credit score of 620. Some programs or lenders may require a higher score.

Q: Can I use CHFA with a VA loan?

Generally, CHFA assistance is designed for conventional, FHA, and USDA loans. VA loans already offer zero-down financing, so CHFA pairing is uncommon. A CHFA-approved lender can advise on your specific situation.

Q: Do I have to take a homebuyer education course?

Yes. CHFA requires all buyers to complete an approved homebuyer education course before closing. These are available online and typically take 6-8 hours.

A lot of first-time buyers in Colorado Springs don't realize down payment help exists. And of the ones who do, most assume they won't qualify. The Colorado Housing Finance Authority (CHFA) program is one of the most underutilized tools for first-time buyers in this state — and it can meaningfully reduce what you need to bring to closing.

Here is what CHFA actually is, what it covers, and whether it might work for your situation.

Important: CHFA programs, income limits, and interest rates change regularly. Everything in this post reflects general program structure — always verify current offerings at chfainfo.com before making any decisions.

What Is CHFA?

CHFA stands for Colorado Housing Finance Authority. It's a state agency that partners with private lenders to offer down payment assistance and below-market interest rate loans to qualifying Colorado buyers. It is not a grant program — the assistance is typically structured as a second loan — but it's designed to make homeownership accessible to buyers who are ready but don't have a large down payment saved.

CHFA programs are available statewide, including throughout El Paso County and the Colorado Springs metro area.

What Does CHFA Cover?

CHFA offers two main forms of assistance:

Down Payment Assistance

A second loan (typically 3% of the purchase price) to cover some or all of your down payment. Repayable when you sell, refinance, or pay off the first mortgage.

Below-Market Interest Rate

CHFA-participating lenders offer first mortgage rates that are often lower than current market rates. The combination of assistance + rate reduction can meaningfully lower your monthly payment.

2025–2026 CHFA Numbers for El Paso County

CHFA updates income limits and purchase price caps annually. Here are the current figures for Colorado Springs and El Paso County — verify at chfainfo.com for the latest, since these can shift mid-year.

Income Limit · 1–2 Person

~$105,000

Non-targeted areas. Targeted areas allow ~$126,000.

Income Limit · 3+ Person

~$121,000

Non-targeted areas. Targeted areas allow ~$148,000.

Purchase Price Limit

~$569,000

Non-targeted areas. Targeted areas allow more.

Down Payment Assistance

Up to 3%

~$12,000 on a $400k home. Structured as a 0% second loan.

Minimum Credit Score

620

Required for most CHFA programs. Some lenders set higher.

Education Requirement

Required

Approved homebuyer course. Available online, ~6–8 hours.

Who Qualifies?

CHFA eligibility is based on several factors. As a general guide:

First-time homebuyer status. CHFA defines "first-time buyer" as someone who has not owned a primary residence in the past three years. Veterans are exempt from this requirement. Buyers in designated targeted areas also qualify regardless of prior ownership.
Income limits. Your household gross income must fall under the limit for your county and household size. For El Paso County in 2025, that's approximately $105,000 for 1–2 person households and $121,000 for 3+ persons in non-targeted areas.
Purchase price limits. The home must fall within CHFA's purchase price cap — approximately $569,000 for non-targeted areas in El Paso County. Most Colorado Springs homes in the $250k–$500k range qualify.
Credit score minimums. Most CHFA programs require a minimum 620 credit score. Your lender may require higher depending on the loan type.
Primary residence only. CHFA is for the home you'll live in. Investment properties and vacation homes don't qualify.
Homebuyer education course. You must complete a CHFA-approved homebuyer education course before closing. These are available online through chfainfo.com and typically take 6–8 hours.

How to Use CHFA

CHFA loans are not offered directly by CHFA — they're offered by approved lenders who participate in the CHFA network. Here's how the process works:

Work with a CHFA-participating lender (I can connect you with several in Colorado Springs)
The lender determines which CHFA program you qualify for and structures the loan
Complete the required homebuyer education course
Proceed through the standard home purchase process — the CHFA assistance is built into your loan structure

From a buyer's perspective, using CHFA doesn't change much about the home buying experience. You still make an offer, go through inspection and appraisal, and close on a normal timeline. The main difference is in your financing structure.

Is CHFA Right for You?

CHFA is a strong option if you're a first-time buyer in Colorado Springs with a steady income but limited savings for a down payment. It works especially well for buyers purchasing in the $250k–$450k range who want to keep more cash in hand at closing.

It's not the only option. Depending on your situation, an FHA loan (3.5% down), a VA loan ($0 down for military buyers), or a USDA loan ($0 down for eligible areas) may be a better fit. The right choice depends on your income, credit, military status, and the specific property you're buying.

CHFA Questions — Answered

These are the questions that come up most often from Colorado Springs buyers asking about CHFA. If yours isn't here, book a call and I'll walk you through it.

Do I have to be a first-time homebuyer to use CHFA?

CHFA defines "first-time buyer" as someone who hasn't owned a primary residence in the past three years. Veterans are exempt from this requirement entirely. Buyers purchasing in designated targeted areas also qualify regardless of prior ownership history.

What is the income limit for CHFA in Colorado Springs?

For 2025–2026, El Paso County income limits are approximately $105,000 for 1–2 person households and $121,000 for 3+ person households in non-targeted areas. Targeted area limits run higher — around $126,000 and $148,000 respectively. Always confirm the current figures at chfainfo.com before making decisions.

What is the CHFA purchase price limit for El Paso County?

For 2025–2026, the purchase price limit for non-targeted areas in El Paso County is approximately $569,000. Targeted areas carry a higher cap. Most homes in the Colorado Springs metro well under $500k fall comfortably within this limit.

Is CHFA down payment assistance a grant — or do I pay it back?

It's a loan, not a grant. CHFA down payment assistance is structured as a second mortgage, typically at 0% interest. CHFA assistance terms vary by program — confirm the specific rate and structure with your CHFA-participating lender. You don't make monthly payments on it, but you do repay it when you sell the home, refinance, or pay off your first mortgage. The benefit is that it gets you into the home now without needing the cash upfront.

How much money does CHFA actually give me?

CHFA provides up to 3% of the first mortgage amount as down payment assistance. On a $400,000 purchase, that's up to $12,000 — enough to cover most or all of the minimum down payment on a conventional loan. Combined with CHFA's below-market first mortgage rate, the total savings can be significant.

What credit score do I need for CHFA?

Most CHFA programs require a minimum 620 credit score. Depending on the loan type (FHA, conventional) and the lender you work with, the minimum could be slightly higher. If you're under 620, it's worth a call to discuss a plan — a few months of credit-building can make a meaningful difference.

Can I use CHFA with an FHA loan?

Yes. CHFA down payment assistance can be paired with FHA loans, conventional loans, and USDA loans. FHA + CHFA is one of the most common combinations for first-time buyers in Colorado Springs who don't have a large down payment saved.

Can I use CHFA with a VA loan?

Generally no — VA loans already provide zero-down financing, so there's no down payment gap to fill. CHFA is primarily paired with FHA and conventional loans. If you're a veteran, a VA loan is usually the better route. I can connect you with VA-experienced lenders in Colorado Springs.

What is the homebuyer education requirement?

All CHFA buyers must complete an approved homebuyer education course before closing. These are available online through chfainfo.com and typically take 6–8 hours. It covers budgeting, the purchase process, and what to expect as a homeowner. You can knock it out in a weekend.

Does CHFA slow down my closing?

Not significantly. Most CHFA buyers close within 30–45 days, the same as a standard purchase. The one extra step is the homebuyer education course — but that can be completed online before you even go under contract.

Can CHFA be used for a duplex or investment property?

No. CHFA is for primary residences only. You must intend to live in the home as your main residence. Duplexes are allowed if you occupy one unit, but investment-only purchases are not eligible.

How do I find a CHFA-approved lender in Colorado Springs?

CHFA maintains a list of participating lenders at chfainfo.com. I also work closely with several CHFA-experienced lenders in Colorado Springs and can make a direct introduction. Reach out and I'll point you to someone who knows the program well.

Want Help Figuring Out Which Program Fits?

Book a free call and I'll help you understand your options — CHFA, VA, FHA, USDA — and connect you with lenders in Colorado Springs who specialize in first-time buyer programs.

Book a Free First-Time Buyer Call

This post is for informational purposes only. CHFA program details, income limits, purchase price limits, and interest rates are subject to change. Verify current information at chfainfo.com and consult with a CHFA-participating lender before making financial decisions.

CHFA Down Payment Assistance in Colorado Springs — How It Actually Works

What Is CHFA?

What Does CHFA Cover?

Down Payment Assistance

Below-Market Interest Rate

2025–2026 CHFA Numbers for El Paso County

Who Qualifies?

How to Use CHFA

Is CHFA Right for You?

CHFA Questions — Answered

Want Help Figuring Out Which Program Fits?

Ready to Buy Your First Home in Colorado Springs?