Buying your first home in Colorado Springs can feel exciting and overwhelming at the same time. You might be asking how to cover the down payment, which programs you actually qualify for, and when to start. You are not alone. Many first-time buyers use a mix of state, federal, and local resources to make the numbers work. In this guide, you will learn how Colorado’s CHFA programs fit with FHA, VA, and USDA loans, what to check for eligibility in El Paso County, what local help exists, and a simple timeline to get 2026-ready. Let’s dive in.
First-time buyer help in Colorado Springs
CHFA at a glance
Colorado’s most important resource for first-time buyers is the Colorado Housing and Finance Authority, known as CHFA. CHFA serves buyers statewide, including El Paso County and neighboring Teller County. CHFA offers primary mortgage products along with down payment and closing cost assistance that is often structured as a 0 percent second mortgage. Depending on the product, this assistance may be forgivable or deferred. You can start exploring options on the CHFA main site.
To use CHFA assistance, expect income and purchase price limits that vary by county and household size, along with homebuyer education requirements. Program terms change over time, so always confirm current limits for El Paso County before you apply.
FHA, VA, USDA and conventional options
Many first-time buyers pair CHFA assistance with a federal loan type. Each loan has its own rules for down payment, credit, income, and property standards.
- FHA loans typically allow a low down payment with qualifying credit. For general guidance and resources for new buyers, review HUD’s buying-a-home overview.
- VA loans provide a zero-down path for eligible veterans and some military families. Learn more from the VA home loan program.
- USDA loans can offer zero down for properties in eligible rural areas. Some parts of Teller County and certain fringes of El Paso County may qualify, but eligibility is address-specific. See the USDA Single-Family Housing Guaranteed Loan Program and check the property eligibility maps on the USDA site.
- Conventional first-time buyer products from Fannie Mae and Freddie Mac can offer low down payment options and pricing benefits for eligible first-time buyers. Some can be combined with CHFA assistance, depending on the lender and program match.
Local assistance and education
City and county resources
Local programs can provide extra help, but they are limited by geography. The City of Colorado Springs manages housing and neighborhood services that can include homebuyer assistance when funding is available. Start with the City of Colorado Springs site and search for homebuyer assistance or Housing and Neighborhood Services.
If you are looking outside city limits in unincorporated El Paso County, check the El Paso County site for any county-level housing or community development resources. In Teller County, local programs are more limited. Buyers there often rely on CHFA, federal loan types, or nonprofit counseling. You can search county resources on the Teller County site.
For broader state housing updates and partner links, the Colorado Department of Local Affairs hosts the Division of Housing. Explore the Division of Housing to see statewide resources and connections to local partners.
HUD-approved counseling and classes
Most down payment assistance programs, including many CHFA options, require a HUD-approved homebuyer education course. Early education can boost your readiness and prevent delays later. Use HUD’s housing counseling agency search to find local classes and one-on-one counseling. You can also use HUD’s buying-a-home overview to understand the process and common terms.
Teller County and rural options
If your search includes Woodland Park, Florissant, or other mountain communities, your financing plan may look a bit different. Teller County has fewer municipal assistance programs, so buyers typically lean on CHFA and the federal loan types above. Many rural or mountain-area properties may qualify for USDA financing, but you must verify eligibility by address using the USDA’s maps.
Eligibility essentials to review
Before you pick a program, confirm a few key items.
- First-time buyer definition. Many programs define a first-time buyer as someone who has not owned a primary residence in the past three years. Some programs have exceptions, or separate rules for targeted areas. Always check the specific program’s definition.
- Income and purchase price limits. CHFA and many local programs cap household income and purchase price, and those caps vary by county and household size. Limits are updated periodically, so confirm current El Paso County numbers on the CHFA site.
- Property type. Some programs cover single-family homes, townhomes, or condos that meet program criteria. If you are considering a condo, make sure it meets the loan program’s approval standards. USDA requires properties to be in designated rural areas, and VA loans have their own property standards.
- Credit and debt-to-income ratios. Each loan type sets its own credit and DTI thresholds. CHFA products have eligibility ranges and require standard lender qualification. Better credit can improve your pricing and choices.
Combine programs the smart way
You can often combine CHFA down payment assistance with FHA, VA, USDA, or conventional loans. The key is to confirm compatibility with your lender and the program administrator before you write an offer. Some assistance is a second mortgage with separate underwriting, which can add time.
- Choose a lender experienced with CHFA and local assistance.
- Ask about second-lien requirements and any extra documents.
- Start your assistance application as soon as you go under contract, or earlier if allowed.
- Build a cushion in your contract timeline to accommodate DPA approvals.
Your 2026 step-by-step plan
If you are aiming to buy in 2026, start now. A thoughtful plan can lower stress and improve your odds of success.
12 to 18 months before you buy
- Take an introductory homebuyer class. Use HUD’s counseling agency search to find local options.
- Pull a credit snapshot and make a plan to improve your score. Address any errors and set up on-time payment habits.
- Start saving for earnest money, reserves, and any gap not covered by assistance.
6 to 12 months before
- Talk with lenders who work with CHFA and local assistance. Ask about FHA, VA, USDA, and conventional first-time buyer options and get pre-qualified.
- Complete your formal homebuyer education course, especially if you plan to use DPA.
- Verify CHFA income and purchase price limits for El Paso County, and review any city or county rules for programs you are considering. Start on the CHFA main site and your city or county resource pages.
3 to 6 months before
- Get a formal lender pre-approval tied to the assistance program you plan to use.
- Begin active house hunting with an agent who understands CHFA and local DPA timing, owner-occupancy rules, and any resale restrictions.
Contract to close
- Apply for your DPA as required. Some programs allow applications at contract, others earlier. Follow your lender’s timeline closely.
- Expect about 30 to 45 days from contract to closing for standard loans. If your assistance involves a second lien or county review, add buffer time.
After closing
- Review your assistance terms. Some second liens are forgiven over time. Others are deferred or due at sale or refinance. Keep copies of all documents so you know exactly how and when any repayment applies.
Pre-approval documents checklist
Your lender will typically ask for the following. Having these ready can speed up pre-approval and keep your DPA application on track.
- Government-issued photo ID
- Social Security number for credit pull
- Recent pay stubs, usually 30 days
- W-2s or 1099s for the past two years
- Federal tax returns if self-employed or as requested by the lender
- Bank and asset statements, usually two months
- Housing history, such as landlord contact information
- Statements for student loans, auto loans, credit cards, or other debts
Location and property tips
- City limits vs unincorporated. City of Colorado Springs programs generally apply only to properties inside city limits. If the home is in unincorporated El Paso County or in Teller County, city assistance likely does not apply. Check resources on the City of Colorado Springs site and the El Paso County site before you assume eligibility.
- Rural eligibility. If you are shopping in mountain or rural areas, including parts of Teller County, a USDA loan may offer zero down. Always confirm property eligibility by address through the USDA program page.
- Condos and townhomes. If a condo is on your list, confirm it meets the loan program’s approval criteria early to avoid delays later.
Partner with a local guide
Buying your first home is a big step, and your financing strategy depends on the property, location, and timing. A local team that understands CHFA, federal loan options, city and county boundaries, and mountain-market nuances can save you time and stress. High Country Realty is based in the Pikes Peak region and works across Colorado Springs and Teller County. We coordinate closely with lenders, watch timelines, and help you choose properties that align with your assistance program and goals.
Ready to map your path to homeownership in 2026? Reach out to High Country Realty to talk through your plan, line up trusted lender introductions, and start your home search with confidence.
FAQs
Is CHFA available in Colorado Springs and Teller County?
- Yes. CHFA serves buyers statewide, including El Paso and Teller Counties. Review current program details and county limits on the CHFA main site.
Can I combine CHFA assistance with FHA, VA, USDA, or conventional loans?
- Often yes, but compatibility depends on the exact CHFA product and your first mortgage type. Confirm details with a lender experienced in CHFA.
What counts as a first-time buyer for assistance programs?
- Many programs use a three-year lookback, meaning you have not owned a primary residence in the past three years. Some exceptions or targeted-area rules may apply.
How long do down payment assistance approvals take?
- Timelines vary by program. Because assistance can involve a second mortgage and extra documentation, allow additional time beyond the typical 30 to 45 days to close.
Are homes near Woodland Park eligible for USDA loans?
- Some areas may be eligible, but USDA is property-specific. Verify by running the address through the eligibility maps linked from the USDA program page.
Where can I find a homebuyer education class in Colorado Springs?
- Use HUD’s housing counseling agency search to find HUD-approved classes and counseling in the Pikes Peak region.
