
Federal Housing Administration (FHA) loans
FHA loans have long been a popular option for homebuyers seeking lower down payments and more flexible credit requirements. When the purchase price and loan limits align, buyers can purchase a home with as little as 3.5% down. In Boulder County, the current FHA loan limit is $862,500 – enough in theory. Still, with single-family home prices in the city often starting around $750,000, it can be difficult to find eligible properties within Boulder proper. Outside city limits, however, there are far more opportunities to take advantage of FHA financing. One key feature of FHA loans is the requirement for mortgage insurance, which allows lenders to take on more risk but also adds to the monthly cost for the buyer.
A lesser-known but powerful FHA option for first-time buyers is the ability to purchase a duplex, triplex, or fourplex with just 3.5% down—as long as the buyer lives in one of the units. It’s a smart way to break into homeownership, start building a real estate portfolio and offset housing costs by having tenants help cover the mortgage.
Colorado Housing Finance Authority (CHFA)
CHFA and its network of lender partners have helped more than 100,000 Colorado homebuyers achieve their dream of homeownership. Designed with first-time buyers in mind, CHFA offers homebuyer education classes to guide you through every step of the purchasing process. Many of CHFA’s loan programs closely resemble those of the FHA, making them accessible and familiar. In addition, CHFA offers down payment assistance grants, providing extra support to help make homeownership more affordable and within reach.
While Boulder County doesn’t have a major military base and hasn’t traditionally been a large VA loan market, many veterans do choose to call this area home—and they should explore VA financing as a potential option. VA loans typically offer favorable terms, including no down payment and more flexible qualification standards. As of 2025, there’s effectively no cap on the loan amount aside from what you can qualify for under VA underwriting guidelines. Be sure to check with your lender for the most current information on eligibility, rates and closing costs.
What was once known as “Farm Home Loans” are now better recognized as USDA loans – designed specifically for rural areas. When I started in real estate in 1978, even towns like Lafayette and Louisville qualified, although that’s no longer the case. Today, USDA loans are still available in more rural parts of Boulder, Weld, and Larimer Counties. Despite the name, you don’t need to be buying a farm to qualify! Some USDA programs offer up to 100% financing, making them a valuable option for the right buyer. However, there are geographic, income, and loan limits to consider, so it’s essential to consult with a knowledgeable lending professional to determine if you qualify.
Conventional Fannie Mae and Freddie Mac
Conventional loans – commonly referred to as Fannie Mae and Freddie Mac loans – form the backbone of the mortgage industry. Created by Congress, these institutions help keep the housing market moving by providing liquidity to lenders that finance home purchases. For first-time homebuyers, conventional loans can offer as little as 3% down, provided the borrower qualifies for the monthly payment. In Boulder County, the 2023 loan limit for conventional financing is $882,500, making it a viable option for many buyers in the area.
Home renovation loans
Perhaps it’s all the fix-and-flip TV shows, but many first-time homebuyers are drawn to the idea of saving money by purchasing a fixer-upper. If that’s your goal, there are several loan programs designed to help you finance both the purchase and the renovations:
FHA 203(k) Loans: Ideal for buyers looking to make improvements, this program allows you to roll renovation costs into your first mortgage based on the after-improved value of the home. It still requires just a 3.5% down payment.
Fannie Mae & Freddie Mac Renovation Loans: These conventional options also allow you to include renovation costs in your first mortgage, with down payments as low as 3%, assuming you qualify.
These programs can be a smart way to turn a fixer-upper into your dream home while spreading costs over time.
Teachers, Police Officers and Firefighters
There are loan programs specifically designed to help teachers, police officers and firefighters buy their first home. The benefits could include a low down payment and a more attractive interest rate.
Down Payment Assistance
CHFA, mentioned above, offers down payment assistance grants that do not need to be repaid if you qualify. CHFA also has second mortgage programs that can contribute to your down payment when you are using a CHFA first mortgage loan program
Colorado First-Time Homebuyer Savings Account
The State of Colorado offers the First-Time Homebuyer Savings Account program, which allows you to contribute up to $50,000 that can grow tax-free to a maximum of $150,000. This special savings account is designed to help first-time buyers save for a home—and family members, friends, or even wedding guests can also contribute to the fund.
Check with local municipalities for other possible down payment assistance programs.
You can also check the Colorado Association of Realtors website for more possible resources for you at: coloradorealtors.com/2017/03/30/down-payment-resource-news.
Using your retirement as a home down payment source
If you’re short on cash for a down payment and have a retirement plan, you might be wondering if you can tap into those funds to buy a home. The short answer is yes, but it’s important to understand the potential consequences. Before making any decisions, consult with your CPA, financial planner, and retirement plan administrator to thoroughly review how this could impact your situation.
Now is the perfect time to explore buying your first home! Connect with your Realtor® and home loan professional to verify loan and income limits and create a plan that fits your needs.
Duane graduated with a business degree and a major in real estate from the University of Colorado in 1978. He has been a Realtor® in Boulder since that time. He joined RE/MAX of Boulder in 1982 and has facilitated over 2,500 transactions over his career. Living the life of a Realtor and being immersed in real estate led to the inception of his book, Realtor for Life. For questions, e-mail duaneduggan@boulderco.com,
call 303.441.5611 or boulderco.com.