Straight answers on down payment, credit, assistance programs, VA loans, and FSBO — for Colorado buyers and sellers. Last reviewed August 24, 2026.
Far less than most people assume. Conventional loans can go as low as 3% down, FHA is 3.5%, and VA and USDA loans allow 0% down for those who qualify.
On a $450,000 Colorado home, 3% is about $13,500 — and down payment assistance can bring that lower still. The widely believed "you need 20%" figure applies mainly to avoiding mortgage insurance on a conventional loan, not to qualifying. Exact amounts and eligibility vary by program; this is not a commitment to lend.
Colorado has real, established programs — most notably through the Colorado Housing and Finance Authority (CHFA), plus metroDPA in the Denver metro area.
These pair with a first mortgage and can provide a grant or a second mortgage toward your down payment and closing costs. They come with income limits, purchase-price limits, a homebuyer education requirement, and limited availability, and the details change over time — so eligibility has to be confirmed for your specific situation. The point most renters miss: assistance you have never heard of may already apply to you.
There is no single cutoff. Many programs start near 620, FHA can go as low as 580 (or 500 with a larger down payment), and the VA sets no minimum (though lenders do).
Credit is a range of options, not a locked door — and it is frequently more fixable than people fear. A single high card balance or an old reporting error can hold a score down more than the underlying history does.
Often, yes — and many buyers are closer than they assume.
Some fixes move a score in weeks; others take a few focused months. Either way, the smart move is a no-pressure review so you know your true starting point and a realistic path, instead of ruling yourself out based on a guess.
It is one of the strongest benefits in housing: 100% financing (zero down for those who qualify), no monthly mortgage insurance, and closing costs that can often be offset with seller concessions. And yes — it is reusable.
Your entitlement can be restored after you sell, and in some cases you can hold more than one VA loan at a time. A VA funding fee may apply, and some veterans are exempt. As a veteran myself, this is the benefit I most want fellow veterans to actually use — many were told they "can't," and that is usually wrong. Subject to eligibility and approval.
Mispricing the home, underestimating Colorado's disclosure and contract deadlines, and failing to screen buyers for real financing before going under contract.
Selling without an agent can work. The sellers who pull it off treat pricing, disclosures, and buyer qualification with the same seriousness a professional would — that is usually the difference between a clean close and a deal that falls apart.
It depends on your timeline and the actual payment — not a blanket rule.
Compare your real rent to a true estimated payment that includes taxes, insurance, and any assistance you qualify for. Many renters are surprised how close the numbers get once the right loan program and down payment help are in the picture.
A short, free conversation to map your real numbers — what you can borrow, what assistance you may qualify for, and what (if anything) to fix first.
No obligation. It replaces guessing with a plan, and knowing your starting point is what turns "someday" into a timeline.
The program details on this page come from the administering agencies. Program terms change — always confirm current figures directly with the source.
About the author. Scott Smith is a licensed mortgage loan officer with Citywide Home Mortgage (NMLS #2244351; Company NMLS #2611) and a real estate agent with HomeSmart, serving Colorado. He is a U.S. veteran and focuses on first-time buyers, down payment assistance, and VA financing. Learn more or book a free call at smithapprovesme.com.
This page is educational and is not financial, legal, or tax advice, nor a commitment to lend. Loan programs, down payment assistance, rates, and eligibility vary by borrower and change over time, and all are subject to qualification and approval. Down payment assistance programs are subject to income and purchase-price limits, homebuyer education, and availability. Scott Smith, NMLS #2244351 | Citywide Home Mortgage, NMLS #2611 | Equal Housing Lender.