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Key Takeaways for Colorado Home Buyers:

Here's what you need to know to get started if you’re looking at buying in the Centennial State.

Average Home Prices in Colorado

As of September 2025, the median sale price for a single-family home in Colorado is $540,183.

Average home price:

  • Denver: $540,183
  • Colorado Springs: $448,632
  • Aurora: $463,247
  • Boulder: $948,562
  • Aspen: $3,460,931

Source: zillow.com/home-values

Average Home Size in Colorado

The average size for a single-family home in Colorado is approximately 2,080 square feet.

Average home size:

  • Denver: 2,134 square feet
  • Colorado Springs: 2,321 square feet
  • Aurora: 2,134 square feet
  • Boulder: 2,365 square feet

Source: https://fred.stlouisfed.org/

Colorado State Taxes

  • Colorado has a flat income tax rate of 4.25%, which applies to all residents regardless of income bracket.
  • The base state sales tax rate in Colorado is 2.9%, but local jurisdictions often add their own taxes, making combined rates range from 2.9% up to about 11.2% depending on location.
  • Colorado’s effective property tax rate is relatively low, averaging around 0.47%, though rates vary by county and assessed value methods.

How Much Can You Afford in Colorado?

Recommended
Monthly Payment:
$750.00

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$750.00
$1050
$1350

Affordable Home Prices With Your Recommended Payment

$107,844.08 house with $9,804.01 down. (10%)

$117,648.09 house with $19,608.02 down. (20%)

$127,452.10 house with $29,412.02 down. (30%)

These examples use the loan term provided and assume a fixed-rate mortgage with an interest rate of 6%.

Colorado Down Payment Assistance Programs

National Homebuyers Fund FHA Program

This down payment assistance program helps buyers get into a home with little to no upfront cost, offering up to 101.5% financing through an FHA first mortgage and a second lien.

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More about this program
  • FHA loan covers 96.5% of the purchase price
  • Second lien covers 3.5% or 5% for down payment or closing costs
  • Minimum credit score: 600 (660 for manual underwriting)
  • No first-time buyer requirement
  • No max DTI with DU/LP approval
  • Homebuyer education required (Fannie Mae HomeView – free online)
  • Non-occupant co-borrowers allowed
  • Eligible properties: Single-family homes, duplexes (2 units), PUDs, condos (agency approved), townhomes, manufactured homes allowed (except single-wides)

National Community Lending Program

This program supports low- to moderate-income buyers with down payment assistance and flexible financing to make homeownership more accessible.

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More about this program
  • 30-year fixed-rate conventional mortgage
  • Second lien offers up to 4% for down payment assistance
  • Max LTV/CLTV: 97% / 105%
  • Income limit: Up to 140% of area median income (AMI)
  • Minimum credit score: 660
  • DTI: Lesser of 50% or AUS approval
  • Eligible properties: Single-family detached or attached homes, single-family homes with accessory units (must be zoned single-family), PUDs and condominiums, rural properties (must be residential in nature)

Colorado Housing and Finance Authority (CHFA) SmartStep & SmartStep Plus

CHFA offers SmartStep and SmartStep Plus programs to help homebuyers with down payment and closing costs. These options pair with a 30-year fixed-rate first mortgage and are open to both first-time and repeat buyers statewide.

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More about this program

Program Highlights

  • Fixed-rate, 30-year loans available for FHA, VA, and USDA-RD financing
  • Choose between a grant (up to 3% or $25,000) or a zero-percent second mortgage (up to 4% or $25,000)
  • Funds can be used for down payment, closing costs, or permanent rate buydown
  • Income limit: $174,440 statewide; loan limit: up to $806,500
  • Minimum 620 credit score and homebuyer education required
  • Owner-occupied single-unit homes, condos, and manufactured homes eligible

Colorado Housing and Finance Authority (CHFA) Down Payment Assistance 0% Second Mortgage

This CHFA option provides a zero-interest, no-payment second mortgage to help with down payment, closing costs, and prepaid expenses. It pairs with a CHFA first mortgage and gives buyers flexibility in how much assistance they use.

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More about this program
  • Offers up to 4% of the first mortgage amount or $25,000 (whichever is less)
  • Full $25,000 available under CHFA FirstGeneration and HomeAccess programs
  • Borrowers may choose a lower amount if desired (rounded to whole dollars)
  • 0% interest, no monthly payments — repaid only when the home is sold, refinanced, or no longer the borrower’s primary residence
  • Can be used for down payment, closing costs, prepaid items, or principal reduction
  • Minimum $1,000 borrower contribution required (may be gifted)
  • Cannot be used to pay off debts or provide cash back to the borrower

Churchill Mortgage is an approved lender for these down payment assistance programs. Contact us today to see if you qualify!

Frequently Asked Questions

Check our FAQs for responses to our most popular questions from Colorado home buyers.

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How Much Should I Budget for Closing Costs in Colorado?

Closing costs in Colorado usually range from 2% to 5% of the home’s purchase price. These costs may include fees for appraisals, inspections, title insurance, and lender charges. Your loan officer can give you a personalized estimate based on your purchase.

For example, on a $300,000 home, buyers can expect to pay between $6,000 and $15,000 in closing costs. 

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What Are the Most Popular Home Loan Types in Colorado?

The most common loans among Colorado buyers are:

  • Conventional Loans – Flexible terms with competitive interest rates. Often preferred by buyers with strong credit and larger down payments, though options with as little as 3% down are available.

  • FHA Loans – Backed by the Federal Housing Administration, these are popular with first-time buyers. They allow lower credit scores and down payments starting at 3.5%.

  • VA Loans – Available to eligible veterans, active-duty service members, and surviving spouses. VA loans require no down payment and no private mortgage insurance (PMI).

  • USDA Loans – Designed for qualifying buyers in rural and suburban areas. These loans also offer no down payment and reduced mortgage insurance costs.

  • CHFA Loans – Offered through the Colorado Housing and Finance Authority, these pair low, fixed-rate first mortgages with down payment and closing cost assistance options such as the CHFA DPA Grant, SmartStep Plus, and 0% Second Mortgage, helping home buyers across Colorado achieve affordable, long-term homeownership.
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How Can I Find a Trusted Local Colorado Realtor to Work With?

Churchill Mortgage's experienced Home Loan Specialists work closely with a network of trusted, local real estate agents across the state of Colorado. Just ask for a referral and we'll provide you with a professional who is committed to finding the right home for you.

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How Do Schools Rank in Colorado?

Colorado’s public schools show a broad range of performance depending on the district. Some districts consistently earn high marks for academics, graduation rates, and college readiness.

  • Top districts: Cheyenne Mountain School District 12 was named the #1 best school district in Colorado in 2025 by Niche.

  • Notable schools: Charter and magnet schools like Peak to Peak in Lafayette often rank among the best in the state.

  • State-level data: The Colorado Department of Education publishes annual School and District Performance Framework results, rating schools on metrics such as achievement, growth, and preparedness. 

For detailed performance data, visit the Colorado Department of Education’s performance dashboards and school report cards.

Reviews from Colorado Home Buyers

★ ★ ★ ★ ★

"Ken was an amazing help through the process of purchasing my first home! He was always ready and willing to help answer any questions I had, big or small! I would absolutely encourage everyone I know in the market to work specifically with Ken!"

Natalie W.
Colorado Springs, CO
★ ★ ★ ★ ★

"David (and the Churchill team) were awesome to work with. Prompt responses to my questions; very personable and helpful! A great experience."

Luke G.
Colorado Springs, CO
★ ★ ★ ★ ★

"I would not have been able to accomplish any of this without Tammy's help and guidance. She helped me from start to finish and was always there to help with absolutely any questions or concerns I had. She was incredibly knowledgeable, and I never felt like a question I had confused her. I would rate Tammy 1000 out of 10 in her work."

Amanda J.
Las Animas, CO

4.9 / 5

gold star gold star gold star gold star gold star

Top Rated Mortgage Lender

Served over 100,000+ happy homeowners!

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Colorado Branch Locations

Denver, CO

303-324-0358

Visit the Branch Website

Westminster, CO

Colorado Springs, CO

719-633-8483

Visit the Branch Website

307 S. Cascade Avenue, Colorado Springs, CO

Churchill Loan Officers in Colorado

Conforming and high balance allowed. Cooperative housing not eligible. Not all applicants will qualify. Not a commitment to lend. Other restriction or limitations to any program may apply.

This calculator is being provided for educational purposes only. The provided values for interest rates are examples only and do not reflect Churchill Mortgage Product terms & offers. The results are estimates that are based on information you provided and may not reflect Churchill Mortgage Product terms. The information cannot be used by Churchill Mortgage to determine a customer's eligibility for a specific product or service. All financial calculators are provided by a third-party and are not controlled by or under the control of Churchill Mortgage. Churchill Mortgage is not responsible for the content, results, or the accuracy of information.

These calculations are hypothetical examples designed to for illustration purposes only. Consult a Home Loan Specialist for more specific information regarding payments, terms, etc.

As a responsible lender, Churchill Mortgage is committed to the principles outlined in federal and state lending laws ensuring all potential borrowers have access to the same information, services, and opportunities throughout the home loan process.