CHFA — the Colorado Housing and Finance Authority — is the starting point for most first-time buyer conversations in Colorado, and for good reason. It is the state’s primary resource for making homeownership more accessible, and it offers two distinct types of assistance that can be used separately or together.

CHFA First Mortgage: CHFA partners with approved lenders to offer first mortgage loans at below-market interest rates for qualifying buyers. These aren’t available through every lender — only CHFA-approved ones — which is one reason working with a local Colorado lender matters so much. The below-market rate can translate to meaningful savings over the life of your loan compared to what you’d get through a conventional retail lender.

CHFA Down Payment Assistance: This is the feature most first-time buyers come to CHFA for. Qualifying buyers can receive a second mortgage of up to 4% of their first mortgage amount to help cover the down payment and sometimes closing costs. This second mortgage carries a low fixed interest rate and is repaid over time — it is not a grant, but the monthly addition to your payment is typically modest and the upfront benefit is significant.

Who qualifies: CHFA defines a first-time buyer as someone who has not owned and occupied a primary residence in the past three years. This means if you owned a home years ago but have been renting since, you may still qualify. Income limits and purchase price limits apply and vary by county — in Larimer County (covering Fort Collins, Loveland, and Berthoud), limits are generally calibrated to local market conditions. The most current figures are available through a CHFA-approved lender.

Important note for NoCo buyers: Not every lender offers CHFA products. Finding a local Colorado lender who is CHFA-approved and experienced with these programs is one of the most important early steps in your home buying process. Bre can refer you to trusted local lenders who work with CHFA regularly.

FHA loans are federally backed mortgages insured by the Federal Housing Administration — and they are consistently one of the most popular first-time buyer loan products in Northern Colorado. The reasons are straightforward: the down payment minimum is 3.5% (lower than most conventional options), and the credit score floor is 580 — significantly more flexible than conventional lending.

What FHA covers: On a $450,000 home — close to Northern Colorado’s median — a 3.5% down payment is $15,750. That’s a meaningful reduction from the 5% to 10% many buyers assume is the floor. FHA loans are widely available through most lenders, including local Colorado lenders, credit unions, and banks.

The catch — mortgage insurance: FHA loans require two types of mortgage insurance: an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, which is typically rolled into the loan, and an annual MIP (mortgage insurance premium) paid monthly. Unlike conventional PMI, FHA mortgage insurance on loans with less than 10% down generally remains for the life of the loan — it doesn’t automatically drop off when you reach 20% equity. This is the most important cost consideration when comparing FHA to conventional options.

FHA + CHFA: FHA loans can be paired with CHFA down payment assistance — a common combination in Northern Colorado that allows buyers to use an FHA first mortgage and a CHFA second mortgage together, further reducing out-of-pocket costs.

The VA loan is one of the most powerful home financing tools in existence — and one of the most consistently underused by eligible buyers who simply don’t realize what they’re entitled to. If you are a veteran, active-duty service member, or the surviving spouse of a service member, the VA loan should be the first program you look at, not an afterthought.

What makes VA loans exceptional: Zero down payment. No private mortgage insurance. Competitive interest rates — often lower than conventional market rates. No prepayment penalty. And the VA loan benefit can be used multiple times, not just for a first purchase. The only upfront cost specific to VA loans is the VA funding fee (typically 1.25% to 3.3% of the loan amount, which can be rolled into the loan), and this fee is waived entirely for veterans with a service-related disability.

In Northern Colorado: VA loans are an excellent fit for buyers in communities like Fort Collins, Loveland, Windsor, and Berthoud — and in a competitive NoCo market, a VA offer from a financially strong buyer is competitive. Some sellers have misconceptions about VA loans being slower or harder to close, but an experienced VA lender and a knowledgeable buyer’s agent can address this effectively.

How to check eligibility: Eligibility is determined through a Certificate of Eligibility (COE), which your lender can typically obtain on your behalf. Generally, veterans who served 90 consecutive days during wartime or 181 days during peacetime qualify, as do National Guard and Reserve members who have served six years or been called to active duty.

The USDA Rural Development loan is another zero-down-payment option that many Colorado buyers don’t know to look for — because they assume “rural” means remote farmland. In practice, some surprisingly accessible Northern Colorado communities and addresses qualify for USDA financing, including areas in and around Berthoud and parts of rural Weld and Larimer County.

Two qualifying requirements: USDA loans have both a property eligibility requirement (the home must be in a USDA-designated eligible area) and a buyer income limit (generally up to 115% of the area median income for your household size and county). Both must be satisfied. The USDA updates its eligible area maps periodically, so a specific address that qualified a year ago should be confirmed as still eligible by a USDA-approved lender.

USDA vs. VA: If you’re eligible for VA, use VA — it’s a better program in most respects. But for buyers who aren’t VA-eligible and are purchasing in a qualifying area, USDA’s zero-down option is a legitimate and underused path to homeownership that deserves serious consideration.

Conventional loans are not government-backed — they follow Fannie Mae or Freddie Mac guidelines — and they typically require stronger credit than FHA or VA loans. But for buyers who qualify, they offer important advantages, including PMI that automatically terminates when you reach 20% equity (unlike FHA mortgage insurance), and no requirement to use a specific lender type or program.

Conventional 97: Fannie Mae’s conventional 97 program allows first-time buyers (defined as someone who has not owned a home in the past three years) to put as little as 3% down. Credit score minimums typically start at 620 to 640. PMI is required until you reach 20% equity — but unlike FHA, it’s cancellable.

HomeReady and Home Possible: These are income-based conventional programs from Fannie Mae (HomeReady) and Freddie Mac (Home Possible) that offer reduced PMI rates and 3% down for buyers at or below 80% of area median income. They also allow non-borrower household income to be considered in qualifying — which can help buyers in multigenerational households. Both are paired with homebuyer education requirements.

Conventional vs. FHA in the NoCo market: For buyers with a 680+ credit score and at least 5% to put down, conventional is often the smarter long-term choice because of cancellable PMI and generally lower overall mortgage insurance costs. For buyers with lower credit scores or less saved, FHA’s flexibility typically wins. A local lender can run side-by-side payment comparisons to show you exactly how the numbers look for your specific situation.

Beyond the state and federal programs above, several Northern Colorado cities and counties maintain their own first-time buyer assistance programs — and these are frequently the least-known and most underutilized resources available. Fort Collins, Loveland, and Larimer County have all offered locally funded down payment assistance and affordable homeownership programs at various times.

These programs vary significantly in their availability, funding levels, income limits, and eligibility requirements — and they change. A program that was active last year may have exhausted its funding; a new one may have been launched. The best way to stay current is to work with a local Northern Colorado lender who actively tracks what’s available and asks about local programs as part of the pre-approval process.