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About the CHFA FirstGeneration
The CHFA FirstGeneration program provides up to $25,000 in down payment assistance as a 0% interest deferred second mortgage, paired with a 30-year fixed-rate first mortgage for Colorado homebuyers who are both first-time and first-generation buyers. Administered by the Colorado Housing and Finance Authority (CHFA), this bond-funded program launched in July 2024 specifically to help buyers whose parents or legal guardians have never owned a home. The assistance can go toward a down payment, closing costs, or both, and no monthly payments are required on the second mortgage.
To qualify for CHFA FirstGeneration, at least one borrower must be a first-time homebuyer who has never owned a home, and that borrower's parents or legal guardians must also have never owned a home during the borrower's lifetime. Borrowers who were in the foster care system at any point during childhood are exempt from the first-generation requirement but must still be first-time buyers. All borrowers need a minimum 620 credit score and must meet CHFA income limits, which vary by county and household size. The 2026 income limits for Colorado range from $130,400 for a one to two person household in non-targeted areas up to $182,560 for households of three or more in targeted areas. CHFA requires borrowers to sign additional affidavits (Forms 401 and 402) verifying their first-generation status.
The CHFA FirstGeneration program stands apart from other CHFA down payment assistance options because it includes its own first mortgage rather than layering onto a standard CHFA first mortgage. The $25,000 maximum is the highest flat-dollar DPA amount in the CHFA lineup, while the standard CHFA DPA options cap at 3% to 4% of the first mortgage. For first-generation buyers purchasing below the median price in Colorado, FirstGeneration typically provides more total assistance than the percentage-based alternatives.
How much assistance
Eligibility
- Income limits: Varies by county and household size per CHFA income limits effective Jan 5, 2026.
- First-time buyer required: Yes — Borrower must be a first-time homebuyer AND a first-generation homebuyer (parents/guardians have never owned a home).
- Credit score minimum: 620
- Geographic restrictions: Must purchase a primary residence in Colorado.
- Homebuyer education required: Yes
How to Apply for CHFA FirstGeneration
Step 1: Confirm first-generation eligibility
You must be a first-time homebuyer who has never owned a home, and your parents or legal guardians must also have never owned a home during your lifetime. If you were in the foster care system at any point during childhood, you qualify without meeting the first-generation requirement but must still be a first-time buyer. CHFA requires completion of additional affidavits (Forms 401 and 402) to verify your first-generation status.
Step 2: Complete homebuyer education
Every borrower, including the first-generation applicant, takes a CHFA-approved homebuyer course before the $25,000 can close. Approved providers hold free classroom sessions statewide in English and Spanish. The online option from eHome America at chfainfo.ehomeamerica.org is $75 for about six hours of material, followed by a call with the provider.
Step 3: Find a CHFA participating lender
FirstGeneration loans come only from CHFA-participating lenders, and Colorado has more than 100, listed at chfainfo.com/homeownership/find-a-participating-lender. That lender originates the program's 30-year fixed first mortgage and the $25,000 second in one file. Your lender must be familiar with the FirstGeneration program specifically, as it has additional documentation requirements beyond standard CHFA loans.
Step 4: Submit your application with affidavits
Your lender will collect standard mortgage documentation including tax returns, pay stubs, bank statements, and identification. For FirstGeneration, you will also complete CHFA Form 401 (Initial Applicant Affidavit) and CHFA Form 402 (Final Applicant Affidavit) certifying your first-generation homebuyer status. Your lender submits these forms to CHFA along with your loan application.
Step 5: Find a home and make an offer
Purchase a primary residence in Colorado. The $25,000 DPA covers your down payment and can also go toward closing costs. Tell your agent the offer is backed by a FirstGeneration first mortgage plus a $25,000 deferred second, so the contract reflects both. On lower-priced homes, the $25,000 may stretch to cover all closing costs as well.
Step 6: Close on your home
Your lender processes the FirstGeneration first mortgage and the $25,000 DPA second mortgage together. The second mortgage is recorded as a 0% interest deferred lien at closing. You make no monthly payments on the DPA portion. The balance becomes due when you sell, refinance, or stop using the home as your primary residence.
Real Cost Example
CHFA FirstGeneration lends up to $25,000 at 0% interest, deferred, which is $9,565 more than the $15,435 FHA minimum down payment on a $441,000 home in Colorado Springs. That second mortgage sits behind the program's own 30-year fixed first mortgage. The full 3.5% down payment is covered, and the remaining $9,565 goes toward closing costs.
Closing costs for a Colorado Springs purchase are estimated at $9,000 to $13,000. After applying the $9,565 surplus from the FirstGeneration assistance, you would need roughly $0 to $3,435 in additional closing cost funds out of pocket. On lower-priced homes in the area, the $25,000 could cover both the entire down payment and all closing costs.
By comparison, the standard CHFA DPA Second Mortgage Loan on this same home would provide approximately $17,023 (4% of the first mortgage), which is $7,977 less than FirstGeneration. For first-generation buyers who qualify, this program provides significantly more assistance, making it the strongest single DPA option in the CHFA lineup for purchases under roughly $700,000.
Combining With Other Programs
The CHFA FirstGeneration program includes its own 30-year fixed-rate first mortgage along with the $25,000 DPA second mortgage. Because the first mortgage and DPA are packaged together, you do not separately select a CHFA DPA option (grant or second mortgage loan) the way you would with other CHFA first mortgage programs like FirstStep or Preferred. The $25,000 DPA is built into the FirstGeneration program itself.
FirstGeneration cannot be combined with the CHFA Down Payment Assistance Grant or the CHFA Down Payment Assistance Second Mortgage Loan, since those DPA options are designed to pair with other CHFA first mortgage tracks. However, buyers may be able to supplement FirstGeneration with other non-CHFA assistance sources such as the CHAC Down Payment Assistance Program ($5,000 to $12,000 deferred loan), employer assistance, or gifts from family members.
For the strongest combination, a first-generation buyer could potentially pair FirstGeneration's $25,000 with the CHAC program for a combined $30,000 to $37,000 in total assistance, enough to cover the full down payment and all closing costs on a median-priced Colorado home. Contact CHFA and CHAC directly to confirm current stacking eligibility between these programs.
Pros and Cons
CHFA FirstGeneration offers the highest flat-dollar DPA in the CHFA lineup at $25,000, which on a $441,000 home in Colorado Springs covers the full FHA down payment plus most closing costs. The 0% interest deferred structure means no monthly payments, and the program was specifically designed for buyers who grew up in renting households and lack family wealth for a down payment. The foster care exemption is a thoughtful provision that widens access. For qualifying buyers, FirstGeneration consistently provides more total assistance than the standard CHFA DPA options, which cap at 3% to 4% of the first mortgage.
The eligibility requirements are the most restrictive of any CHFA program. Both the first-time buyer and first-generation buyer requirements must be met, and CHFA requires signed affidavits verifying that parents or guardians never owned a home. This documentation can be difficult for borrowers who have limited contact with their parents or whose family housing history is unclear. The $25,000 must also be repaid in full when you sell or refinance, which reduces your equity at the time of sale. Buyers who miss the first-generation definition should look at the CHFA Down Payment Assistance Second Mortgage Loan (up to 4% of the first mortgage) or the CHFA Down Payment Assistance Grant (up to 3%, no repayment), which ignore family homeownership history.
Frequently Asked Questions
Do I have to pay back the CHFA FirstGeneration down payment assistance?+−
What qualifies someone as a first-generation homebuyer for CHFA?+−
Can I use CHFA FirstGeneration with an FHA loan?+−
How is CHFA FirstGeneration different from other CHFA DPA programs?+−
Can I combine CHFA FirstGeneration with the CHFA DPA Grant or Second Mortgage Loan?+−
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Program details last verified: May 12, 2026