CHFA helps Colorado buyers cover the down payment with a grant up to 3% or a deferred second mortgage up to $25,000. Here is how it works in 2026, who qualifies, and the El Paso County limits.
CHFA Income Limits 2026: What Changed on June 15
The short answer: Colorado Housing and Finance Authority (CHFA) updated its income and purchase price limits effective June 15, 2026, for any new loan lock made on or after that date. In El Paso County (Colorado Springs), the CHFA FirstStep and FirstGeneration income limit is now $127,800 for a 1–2 person household and $146,970 for a household of 3 or more in non-targeted areas, while most other CHFA programs cap qualifying income at $178,920 statewide — up about 2.6% from the prior (May 2025) limits.
If you’re buying a home in Colorado Springs or anywhere in Colorado and looking at down payment assistance, CHFA just raised the bar on who qualifies. On June 15, 2026, CHFA updated the income limits across all of its mortgage programs and the purchase price limits on its first-time and first-generation buyer programs. Here’s exactly what changed, the new El Paso County numbers, and how to tell whether you still fit.
What CHFA changed on June 15, 2026
CHFA made two updates, both effective for new loan locks on or after June 15, 2026:
- Income limits were updated for all CHFA mortgage loan programs.
- Purchase price limits were updated for the four programs that have them: CHFA FirstStep, FirstStep Plus, FirstGeneration, and FirstGeneration Plus.
Loans locked before June 15 still use the prior limits. If you’re a Colorado lender, note that CHFA also updated the Form 407 signature page — use the 6/26 version (shown in the upper-right page header) for any loan locked on or after today.
How much did CHFA income limits go up from 2025 to 2026?
Compared with the prior schedule (effective May 19, 2025), the new June 15, 2026 limits rose modestly and consistently — about 2.6% on income limits and roughly 2.3% on El Paso County purchase price limits. The overall maximum total loan amount climbed a bit more, from $806,500 to $832,750 (about 3.3%), tracking the 2026 conforming loan limit. Here’s the El Paso County change, before and after:
| El Paso County (FirstStep / FirstGeneration) | 2025 | 2026 | Change |
|---|---|---|---|
| Income limit — 1–2 person (non-targeted) | $124,600 | $127,800 | +$3,200 (2.6%) |
| Income limit — 3+ person (non-targeted) | $143,290 | $146,970 | +$3,680 (2.6%) |
| Income limit — 1–2 person (targeted) | $149,520 | $153,360 | +$3,840 (2.6%) |
| Purchase price limit — non-targeted | $553,960 | $566,730 | +$12,770 (2.3%) |
| Purchase price limit — targeted | $677,060 | $692,670 | +$15,610 (2.3%) |
| Most other programs (SmartStep, Preferred, etc.) | $174,440 | $178,920 | +$4,480 (2.6%) |
Comparison: CHFA Home Finance Program Income Limits effective May 19, 2025 vs. effective June 15, 2026.
The new CHFA income limits for El Paso County (Colorado Springs)
CHFA income limits depend on the program. For the FirstStep and FirstGeneration programs, they also depend on household size and on whether the property is in a federally designated “targeted” area. Here are the El Paso County figures effective June 15, 2026:
| El Paso County limit | 1–2 person household | 3+ person household |
|---|---|---|
| FirstStep / FirstGeneration — non-targeted area | $127,800 | $146,970 |
| FirstStep / FirstGeneration — targeted area | $153,360 | $178,920 |
| SmartStep, Preferred, HomeAccess, and most other programs | $178,920 (regardless of household size) | |
| Preferred Very Low Income Program (VLIP) | $57,850 (regardless of household size) | |
Source: CHFA Home Finance Program Income Limits, effective June 15, 2026.
Purchase price limits apply only to FirstStep and FirstGeneration
Most CHFA programs — SmartStep, Preferred, SectionEight, Colorado HFA1, HomeAccess, and Schools to Home — have no purchase price limit. The catch on those programs is the total loan amount, which can’t exceed the lower of $832,750 or the limit set by your loan type (FHA, VA, USDA, or conventional).
The FirstStep and FirstGeneration programs are the ones with a true purchase price limit. In El Paso County, the new limits are:
- $566,730 in a non-targeted area
- $692,670 in a targeted area
On these programs, the loan can never exceed the purchase price limit, and still can’t exceed the lower of $832,750 or your loan-type limit.
Qualifying income vs. gross annual income — the part people miss
CHFA uses two different income definitions, and which one applies depends on the program:
- Qualifying income (SmartStep, Preferred, and most programs): only the income your lender actually uses to credit-qualify the borrowers counts toward the limit.
- Gross annual income (FirstStep and FirstGeneration): the total gross income of everyone on the loan — plus a spouse or civil-union partner who will live in the home, and anyone else who will live there and be secondarily liable on the mortgage. All of their income sources are counted.
That difference matters: a household can clear the limit on one program and exceed it on another, even at the same income.
Targeted vs. non-targeted areas in Colorado Springs
“Targeted” areas are specific census tracts the federal government designates for additional homeownership support. In a targeted area, the income and purchase price limits are higher, which can open the door for buyers who’d be just over the line elsewhere. El Paso County contains both targeted and non-targeted areas, so the limit that applies to you depends on the exact address. Your lender confirms the tract when you apply — it isn’t something you can eyeball from the street.
Southern Colorado at a glance (FirstStep, non-targeted)
| County | 1–2 person income limit | 3+ person income limit | Purchase price limit |
|---|---|---|---|
| El Paso (Colorado Springs) | $127,800 | $146,970 | $566,730 |
| Teller (Woodland Park) | $127,800 | $146,970 | $566,730 |
| Pueblo | $153,360 | $178,920 | $692,210 |
| Fremont (Cañon City) | $127,800 | $146,970 | $566,350 |
Source: CHFA Home Finance Program Income Limits, effective June 15, 2026. Targeted-area limits are higher; ask your lender which applies to your address.
Wait — why does Pueblo show a higher income limit than Colorado Springs? It’s not a typo. CHFA’s FirstStep and FirstGeneration income limits are set by a federal formula based on median family income, not local home prices, so a number of lower-cost counties land at the same $153,360 / $178,920 figure. El Paso County’s non-targeted limit comes in lower ($127,800 / $146,970), but its targeted areas use that same $153,360 — so where you buy within the county can change which limit applies. (On CHFA’s true income-based program, the Very Low Income Program, El Paso’s limit of $57,850 is correctly higher than Pueblo’s $43,850.)
What this means if you’re buying in Colorado this year
If a higher income recently pushed you out of a down payment assistance program, it’s worth a fresh look — these limits went up. A few practical takeaways:
- If you lock on or after June 15, 2026, the new limits apply automatically.
- Check your county and household size — the FirstStep limits move with both.
- The FirstStep and FirstGeneration programs are built for first-time and first-generation buyers and come with down payment assistance; the income definition is broader, so count every household member’s income.
Not sure which program fits your county, household size, and price range? That’s exactly the kind of thing worth running through with a local Colorado Springs mortgage team before you start shopping — a 15-minute check now can tell you which CHFA program you qualify for and how much help you can get. Reach out to 719 Lending and we’ll walk your numbers with you.
Frequently asked questions
What are the 2026 CHFA income limits for El Paso County?
For the FirstStep and FirstGeneration programs in a non-targeted El Paso County area, the limit is $127,800 for a 1–2 person household and $146,970 for a household of 3 or more, effective June 15, 2026. In targeted areas those rise to $153,360 and $178,920. Most other CHFA programs use a $178,920 limit regardless of household size.
When did the new CHFA limits take effect?
June 15, 2026. They apply to any new CHFA loan lock made on or after that date. Loans locked earlier use the prior limits.
Which CHFA programs have purchase price limits?
Only CHFA FirstStep, FirstStep Plus, FirstGeneration, and FirstGeneration Plus. In El Paso County the purchase price limit is $566,730 in a non-targeted area and $692,670 in a targeted area. The other CHFA programs have no purchase price limit, though the total loan still can’t exceed the lower of $832,750 or your loan type’s limit.
What’s the difference between qualifying income and gross annual income?
Qualifying income (used by SmartStep, Preferred, and most programs) counts only the income your lender uses to credit-qualify the borrowers. Gross annual income (used by FirstStep and FirstGeneration) counts the total income of everyone on the loan, plus a resident spouse or partner and anyone else living in the home who’s secondarily liable.
Do CHFA income limits depend on household size?
For FirstStep and FirstGeneration, yes — there’s a 1–2 person limit and a higher 3-or-more limit. For most other CHFA programs, no: the limit is a flat $178,920 regardless of household size.
How much did CHFA income limits increase for 2026?
In El Paso County, CHFA’s income limits rose about 2.6% from the prior (May 2025) schedule to the June 15, 2026 schedule — for example, the FirstStep non-targeted limit went from $124,600 to $127,800 for a 1–2 person household. Purchase price limits rose about 2.3% (from $553,960 to $566,730 in non-targeted areas), and the overall maximum loan amount increased from $806,500 to $832,750.
What’s the maximum CHFA loan amount in 2026?
A CHFA loan can’t exceed the lower of $832,750 or the limit set by your loan type (FHA, VA, USDA, or conventional). On FirstStep and FirstGeneration, it also can’t exceed the program’s purchase price limit for your county.
719 Lending Inc. is a private mortgage broker and is not affiliated with, or acting on behalf of, the Colorado Housing and Finance Authority (CHFA) or any government agency. CHFA program income and purchase price limits are set by CHFA, are effective for new loan locks on or after June 15, 2026, and are subject to change; confirm current limits and your eligibility with CHFA or your lender.
719 Lending Inc., NMLS #1601989 · Equal Housing Opportunity · This article is educational only, is not a commitment to lend, and not all applicants will qualify.
