How do you budget for a first home in a high-price Colorado market?

The caps that set your ceiling

FirstStep price limits vary a lot. Denver, Boulder, Douglas and Jefferson counties sit at $832,750. Weld is $735,320, Larimer is $664,190 and El Paso is $566,730. Check your county's FHA limit with HUD's lookup before you plan an FHA purchase. See all county figures on the income limits page.

How each program scales with price

Percent-based help grows with the loan until a dollar cap stops it. Here is where each one stops.

In a high-price market, Schools To Home is the outlier. Other programs reach their caps early.

A $550,000 purchase, three ways

All figures are illustrative and leave out closing costs.

Teacher using Schools To Home

First mortgage of $440,000 (80% of price). Assistance of 25% of that loan, $110,000, which is 20% of the price. This matches the split in CHFA's own example. At 80% loan-to-value, CHFA requires no PMI. The buyer still brings at least $1,000, and closing costs need a plan. If the home later sells for $600,000, the appreciation payment is 20% of the $50,000 gain, or $10,000, on top of the $110,000.

Firefighter using Champions with FHA

FHA's 3.5% down is $19,250. Champions pays the lesser of $25,000 or 4% of the first mortgage. On a base loan near $530,750, 4% is about $21,230. That covers the down payment with some left for costs. FHA's annual insurance applies for the life of the loan at this down payment.

Nurse using SmartStep's grant

Same FHA loan. The grant is about 3%, roughly $15,900. That is less than the down payment, so the buyer covers the rest from savings or a gift. It never has to be repaid.

Local money for expensive areas

• Boulder H2O: up to $100,000 for first-time buyers who have worked in the city for at least a year. Income limit is 150% of area median. Funding is first-come, first-served.
• denFirstGen: $30,000, up to 20% of price, for first-time and first-generation buyers in Denver, with an FHA loan through metroDPA.
• Colorado Roots: up to $50,000 in cities and counties with a Proposition 123 filing, including Denver, Aurora, Boulder, Fort Collins and much of the metro.
• Dearfield Fund: up to $50,000 for first-time buyers who now live in a lower-income census tract.

Stacking has limits. Schools To Home allows no other second mortgage, though CHFA's FAQ permits another provider's grant. Most of the loans above are second mortgages, so they likely cannot sit under Schools To Home. Confirm before you count on two programs.

Cash to close at higher prices

Closing costs grow with the loan. Lender fees, title insurance and prepaid taxes and insurance all scale up. Plan the cash side in three parts.

• Your required money: CHFA asks for at least $1,000 of your own funds. A gift can count.
• What the assistance can pay: Schools To Home money can go to the down payment, closing costs, prepaids or principal reduction. So the 80/20 split above can shift to cover costs.
• Earnest money: sellers expect it with your offer. It is usually credited back at closing, but it must be in your account first.

Transfer costs are low in most of Colorado. The state documentary fee is one cent per $100 of price, or $55 on a $550,000 home. A few resort towns add their own transfer tax; see the mountain-town guide. Ask your lender for a Loan Estimate at your target price. Its "cash to close" line is the number to save toward.

Budget the whole payment, not just the loan

High prices push up every other line in the payment.

• Property tax: for 2026, Colorado's residential assessment rates are 6.8% for local governments and 7.05% for schools, per the Division of Property Taxation. Your county's mill levies set the bill. New subdivisions may add a metro district levy.
• HOA dues: about 46% of Coloradans live in a common interest community, per the state's HOA Information and Resource Center. See the HOA guide.
• Insurance: wildfire and hail risk drive premiums. Get a quote early. See the insurance guide.

CHFA allows debt-to-income up to 50% with a 620 to 659 score, or 55% at 660 and up. A higher score can add real buying room in an expensive area.

A five-step budget plan

1. Pick your likely program from your job and income.
2. Note your county's FirstStep price limit and FHA limit.
3. Ask a lender for the full monthly payment at your target price, with taxes, HOA and insurance.
4. Decide how much help to take, not just the maximum.
5. Check local funds for your city before you write an offer.

Ready to see which caps apply to you? Check your eligibility.

Questions

Other guides

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• How much do metro district taxes add to a new Colorado home?
• What should first-time buyers check about a Colorado HOA?
• What rules apply to first-time buyers in Colorado mountain towns?
• How do deed-restricted and land trust homes work in Colorado?
• How does wildfire risk affect home insurance for Colorado buyers?