Colorado · State guide
How to buy a house in Colorado
An expensive but cooling market with some of the lowest property taxes in the country and a state agency that offers a 3% down payment grant you never repay — balanced against fast-rising home insurance. Here is the playbook for buying in the Centennial State.
Last updated June 2026
Why Colorado is different
Buying a house in Colorado, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Colorado has its own programs, taxes, and closing rules worth knowing before you start.
The picture: Colorado is expensive but cooling (a statewide median around $563,000; Denver and Boulder are pricey, the mountain resorts are in another league, while Colorado Springs and Pueblo are more affordable). The good news is some of the lowest property taxes in the country and strong state help — CHFA offers a 3% down payment grant you never repay, or a larger 0% deferred second.
Two things to plan for. There’s essentially no transfer tax in most of Colorado (a tiny exception in a dozen mountain towns), but home insurance is rising fast here, driven by hail and wildfire. Always confirm you can insure a specific home before you commit. Use the 50-state hub to compare other states.
The market
What homes cost in Colorado
A cooling, more balanced market with an enormous gap between the resorts and the plains.
The statewide median sale price was about $563,000 in spring 2026 (Redfin), roughly flat year over year, with inventory up to around four months of supply — more buyer leverage than at any point since the pandemic boom. Prices vary widely by area:
Median prices by area
Aspen (Pitkin) is in a league of its own, ~$2M+ · Vail (Eagle) ~$1.76M · Summit County (Breckenridge) ~$1.2M · Boulder ~$830K (county ~$736K) · Denver ~$635K · Fort Collins ~$543K · Colorado Springs (El Paso) ~$450K · Pueblo the most affordable, ~$326K. The Denver metro is competitive; the plains and Western Slope offer the most value.
Down payment & rate help
CHFA programs
You don’t apply directly — you work through a CHFA participating lender. A 620 credit score and a homebuyer class are required.
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CHFA first mortgages
The core: a 30-year fixed loan. FirstStep (FHA, first-time buyers, lowest rate), SmartStep (FHA/VA/USDA, no first-time requirement), and Preferred (conventional, reduced PMI). There’s also HomeAccess for buyers with a disability and FirstGeneration for first-generation buyers.
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DPA Grant (never repaid)
The standout: a down payment grant of up to 3% of your loan (capped at $25,000) that you never have to repay. It’s the simplest help available — pure money toward your down payment or closing costs, with no second mortgage attached.
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DPA Second Mortgage (0%)
If you want more cash, choose a deferred 0% second mortgage of up to 4% of your loan (capped at $25,000) instead. There’s no monthly payment — you repay it only when you sell, refinance, or pay off the first mortgage. You pick the grant or the second, not both.
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Metro & federal help
Denver-area buyers can compare metroDPA (a 0% deferred second, higher income limit, no first-time requirement) and El Paso County’s Turnkey grant. Plus FHA (3.5% down), VA (0% down), and USDA (0% down) in rural areas.
The CHFA rules in brief
You’ll generally need a 620 credit score, a DTI up to 50% (55% with a 660+ score), completion of a CHFA homebuyer education class, and a minimum $1,000 of your own funds (gifts allowed). Income limits vary by county and program — the SmartStep statewide limit is about $174,440, with the loan capped at $832,750. Remember you choose one down payment option: the 3% grant (never repaid — best if you may move soon) or the 4% deferred second (more cash, repaid later — best if you’ll stay long-term). FirstStep and Preferred have no purchase-price limit beyond the loan cap.
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Property taxes
Property taxes in Colorado: among the lowest
Colorado has among the lowest effective property tax rates in the country — roughly 0.45%–0.55%, with a typical Denver bill around $3,000 on a $600,000+ home. The math is unusual: your tax is your home’s actual value × an assessment rate × the local mill levy. For 2026 the residential assessment rate is about 6.4% (after recent reforms following the repeal of the old Gallagher Amendment), and a new law caps how fast local-government tax revenue can grow. Counties are reassessed every two years.
Bills are rising — and seniors get a break
Even though rates are low, many homeowners saw bills jump 20%–40% recently as temporary pandemic-era discounts expired and home values reset. So budget off the current tax rate, not last year’s bill, and watch for metro-district levies in newer subdivisions, which can add a lot. Homeowners 65 or older (who’ve owned the home 10+ years) and 100%-disabled veterans can claim a Senior Homestead Exemption — 50% off the first $200,000 of value — by filing with the county assessor (by July 15).
Closing & costs
Closing on a home in Colorado
Colorado is a title-company state — a title company handles the closing “at the table” and disburses funds the same day, and an attorney isn’t required. Title insurance is standard (and matters here, given Colorado’s complex water and mineral rights). The big advantage is cost: Colorado has no statewide transfer tax — just a token documentary fee of $0.01 per $100 (one cent per hundred dollars), usually paid by the seller, plus a small recording fee. Buyers typically pay 2%–3% in closing costs. On financing, the 2026 conforming limit is $832,750 ($862,500 in the Denver metro), and the FHA floor is $541,287 — but mountain-resort counties run much higher, up to the ceiling of $1,249,125 (Eagle/Vail).
Buying in a mountain town? Watch for a local transfer tax
Most of Colorado has essentially no transfer tax — but a dozen home-rule mountain towns levy their own, grandfathered before the state banned new ones. Rates run 1%–3%: Telluride and Crested Butte 3%, Aspen 1.5%, and Breckenridge, Vail, Frisco, Winter Park, Avon, Snowmass and others around 1%. That can be the single largest closing cost there — $30,000 on a $1M Telluride home. Everywhere, sellers must give you a Seller’s Property Disclosure; always get your own inspection, and note the federal lead-paint rule for pre-1978 homes.
Insurance & risks
Insuring a Colorado home
This is the cost rising fastest for Colorado owners. The state is now among the most expensive in the country for home insurance — averaging roughly $3,200–$4,000+ a year and climbing (premiums jumped about 58% from 2018 to 2023). Colorado is a “dual-catastrophe” state: it faces both hail — the #1 driver of rising premiums, since the Front Range sits in “Hail Alley” — and wildfire (the December 2021 Marshall Fire near Boulder was the most destructive in state history).
Hail roofs, wildfire coverage, and being underinsured
Two traps to avoid. First, insurers are shifting older roofs to actual-cash-value (depreciated) rather than replacement-cost coverage, so a roof over ~15 years can mean a big out-of-pocket gap after a hailstorm — a Class 4 impact-resistant roof can cut premiums 15%–30%. Second, after the Marshall Fire, studies found most affected homeowners were underinsured — so make sure your dwelling coverage reflects the true rebuild cost. Always get a quote before going under contract, and in wildfire zones confirm a carrier will even write the home (the new Colorado FAIR Plan is the last resort). Flood is separate (NFIP).
Wherever you buy
The steps that work the same in Colorado
Colorado sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Colorado: common questions
How much money do you need to buy a house in Colorado?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$563,000 home that’s roughly $17,000–$20,000 down plus closing costs. CHFA’s 3% grant can cover much of the down payment without repayment. See how much you really need →
Does Colorado have down payment assistance?
Yes. CHFA offers a 3% grant you never repay, or a 4% deferred 0% second mortgage (up to $25,000). Denver-area buyers can also use metroDPA, and El Paso County has a Turnkey grant. See assistance programs →
Is the CHFA down payment grant really not repaid?
Correct — the CHFA DPA Grant (up to 3% of your loan) is a true grant with no repayment. If you’d rather have more cash, you can instead choose the 4% deferred second mortgage, which is repaid later. You pick one.
Are property taxes low in Colorado?
Yes — among the lowest effective rates in the country (~0.45%–0.55%). But bills have been rising as temporary discounts expired, so budget off the current rate. Seniors 65+ and disabled veterans get a homestead exemption.
Does Colorado have a transfer tax?
Statewide, essentially no — just a token $0.01-per-$100 documentary fee. The exception is a dozen home-rule mountain towns (Telluride, Aspen, Vail, Breckenridge, etc.) that charge 1%–3% local transfer taxes.
What credit score do you need in Colorado?
CHFA programs generally require a 620. For loans broadly, FHA can go to 580 and USDA/VA typically want 620. A higher score mainly earns a lower rate and a higher allowed DTI. Check the score by loan type →
Do I need an attorney to buy a house in Colorado?
No. Colorado is a title-company state — a title company handles the closing at the table. Title insurance is standard and especially worth it given Colorado’s water and mineral rights.
Why is home insurance so expensive in Colorado?
Colorado faces both hail (the #1 cost driver, especially along the Front Range) and growing wildfire risk. Premiums have risen sharply, and insurers are tightening roof coverage — always get a quote before going under contract.
What’s the conforming loan limit in Colorado?
$832,750 in most counties and $862,500 in the Denver metro for 2026. Mountain-resort counties run higher — up to the ceiling of $1,249,125 in Eagle (Vail). The FHA floor is $541,287.
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