State Buyer Guide

First-Time Home Buyer Guide
for Colorado

Down payment assistance, Colorado housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

Step 1 — Do This First

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$550,000
Avg Home Price
0.5%
Property Tax Rate
~$11,000
Est. Closing Costs
None (state); minor documentary fee in some cities
Transfer Tax

Colorado Housing Finance Agency Programs

The Colorado Housing and Finance Authority (CHFA) is your primary source for below-market mortgage rates and down payment assistance in Colorado. Programs are available through approved lenders — not directly through the HFA.

CHFA FirstStep
Below-market rates + DPA Grant of up to 3% of loan amount

30-year fixed-rate FHA loan with optional down payment assistance.

Income limit: $180,100 (varies by county)
Learn more at Colorado Housing and Finance Authority (CHFA)
CHFA SmartStep Plus
Up to 3% of loan amount as a grant — never repaid

Conventional loan with DPA grant for buyers who don't qualify for FHA.

Income limit: $180,100 (varies by county)
Learn more at Colorado Housing and Finance Authority (CHFA)
High Value — $240/funded loan

Credible

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Closing Costs in Colorado

Typical Closing Cost Range
2% of purchase price

On a $550,000 home: approximately $11,000

Transfer Tax
None (state); minor documentary fee in some cities

Colorado has no state real estate transfer tax. Some cities charge a small documentary fee, but overall closing costs are lower than many neighboring states.

Attorney at Closing?
No — title company state

Colorado is a title-company state. An attorney is not required, but many buyers in FSBO transactions hire one to review the contract and title work.

Key Tips for Buying in Colorado

  • Radon is a serious concern — EPA ranks Colorado among the highest-risk states. Always test; mitigation costs $800–$1,500.
  • The Front Range market is competitive — get fully pre-approved (not just pre-qualified) before making offers.
  • HOA fees in Denver suburbs can be $300–$700/month — factor these into your affordability calculation.
  • Colorado has a short due-diligence period by default — negotiate more time for inspection, especially in FSBO deals.
Home Inspection

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Legal Help for Colorado Buyers

While Colorado doesn't require an attorney at closing, FSBO buyers should strongly consider having one review the purchase agreement and title work.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

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US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms

Frequently Asked Questions

What first-time buyer programs are available in Colorado?

Colorado first-time buyers can access programs through the Colorado Housing and Finance Authority (CHFA) (https://www.chfainfo.com/), including the CHFA FirstStep (Below-market rates + DPA Grant of up to 3% of loan amount) and the CHFA SmartStep Plus (Up to 3% of loan amount as a grant — never repaid). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in Colorado?

Closing costs in Colorado typically run 2% of the purchase price. Transfer tax: None (state); minor documentary fee in some cities. Colorado has no state real estate transfer tax. Some cities charge a small documentary fee, but overall closing costs are lower than many neighboring states.

Do I need an attorney to buy a home in Colorado?

Colorado is a title-company state. An attorney is not required, but many buyers in FSBO transactions hire one to review the contract and title work.

What is the average home price in Colorado?

The median home price in Colorado is approximately $550,000. Property taxes average 0.5% of assessed value annually.

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