Colorado First-Time Home Buyer Guide

A CHFA first mortgage (FirstStep FHA, SmartStep FHA/VA/USDA, or Preferred conventional) paired with the 3% grant or 4% second; the $25,000 FirstGeneration program; metroDPA's three-year-forgivable second in the Denver metro; and county programs in El Paso and Aurora. The state's Proposition 123 Affordable Homeownership Program also expanded eligibility effective July 1, 2026.

Anyone who hasn't owned a primary residence in the past three years — prior ownership longer ago doesn't disqualify you. Several Colorado programs, including El Paso County's Turnkey, skip the first-time requirement entirely.

About 0.5% of home value on average — among the lowest in the nation, roughly half the national average. On a $600,000 home that's typically $2,500–$3,500 a year — though metro-district communities run meaningfully higher.

New-construction communities often sit in special taxing districts that repay infrastructure through extra mill levies — commonly 30–50 mills — which can roughly double the property tax bill versus a comparable resale home, for 20 to 40 years. We factor the metro-district levy into your qualifying payment up front so there's no surprise.

No — Colorado does not reassess on sale. Every property revalues on the same two-year cycle (odd-numbered years), so buying doesn't reset your tax basis. Buyers arriving from reassessment states like California find this a pleasant surprise.

Colorado now uses two rates: roughly 7.05% of actual value for school levies and 6.8% for local-government levies, with the local-government portion first reduced by 10% of value (up to $70,000). Both can tick down slightly if statewide growth exceeds triggers — confirm the final figure with your county assessor.

Yes — homeowners 65+ who have owned and occupied their home for 10 consecutive years get 50% of the first $200,000 of value exempted. Veterans with a 100% permanent and total service-connected rating (or TDIU) get the same exemption with no 10-year wait, and surviving spouses can qualify.

No — TABOR has banned new transfer taxes since 1992; you pay only a documentary fee of one cent per $100 of price ($60 on a $600,000 home). The exception is a dozen grandfathered resort towns — Aspen (1.5%), Vail (1%), Breckenridge, Telluride, Crested Butte and others — with municipal transfer taxes of roughly 1–4%.

Typically 2–3% of the purchase price plus prepaids — with no state transfer tax helping keep Colorado near the low end nationally. By custom the seller pays for your owner's title policy and you pay the lender's policy; title companies close, no attorney required.

Commonly 1–2% of the price, deposited with the title company within about three days of going under contract, and credited toward your cash to close. Colorado's standard contract sets dated deadlines — inspection objection typically one to two weeks in — during which you can terminate in writing and keep your deposit.

The 2026 baseline is $832,750, but most Front Range counties run higher: $862,500 across the six Denver-metro counties, $879,750 in Boulder County, and up to the $1,249,125 ceiling in Eagle County, with Pitkin and Garfield near $1.21 million and Summit at $1,092,500 — verify your county's current limit before relying on it, since these figures are widely copied wrong. Above your county's limit is jumbo territory — it's the loan amount after your down payment that decides.

From the $541,287 floor in most counties to $862,500 across metro Denver, $879,750 in Boulder County, and $1,249,125 in resort counties like Eagle and Pitkin. El Paso County (Colorado Springs) sits just above the floor at $541,650.

A flat 4.40% for 2026. TABOR surpluses periodically trigger temporary cuts — 2025's rate was about 4.25% — but no refund is projected for tax year 2026. For retirees: Social Security is fully deductible at 65+ (and at 55–64 under income caps starting tax year 2025), with pension exclusions on top.

Hail — not wildfire — is the top driver, accounting for 26–54% of premiums by county per the state Division of Insurance; premiums roughly doubled from 2018 to 2024 and now run several thousand dollars a year. We quote insurance early in preapproval because it directly affects how much home your budget supports.

Yes — the Colorado FAIR Plan began writing policies in 2025 as the insurer of last resort: coverage capped at $750,000, base policy limited to fire and lightning at actual cash value, and three carrier declinations required. We treat it as a bridge, not a destination, when structuring a mountain-property loan.

Yes — $0-down USDA Rural Development loans work in eligible Colorado areas, generally communities under 35,000 people, including much of the eastern plains and many small mountain and Western Slope towns. We run any address through the USDA map during preapproval, and CHFA's SmartStep can layer on a USDA loan.