Do All Borrowers Need to Be First-Generation Homebuyers?

If there are multiple borrowers on the loan, do they all need to be first-generation homebuyers? The short answer, straight from the Colorado Housing and Finance Authority (CHFA), is no — only one borrower must be a first-generation homebuyer. This article explains exactly how the CHFA FirstGeneration program treats co-borrowers, how the definitions work, and what Colorado buyers should do next.

It is written for anyone in Colorado — including the many military families around Colorado Springs — considering the CHFA FirstGeneration program with a spouse, partner, or other co-borrower on the mortgage.

The quick answer for multiple borrowers

Here is the rule set in plain terms:

• First-generation status: only one borrower on the loan must be a first-generation homebuyer.
• First-time status: all borrowers must be first-time homebuyers, meaning no one on the loan has owned a home in the prior three years.
• Verification: the qualifying borrower signs an affidavit, provided by the lender, attesting to first-generation status.
• Foster care exception: borrowers who lived in the foster care system do not need to be first-generation homebuyers, but must have never owned a home.

Those two layers — first-generation and first-time — are where most confusion happens, so the next sections unpack each one.

Do all borrowers need to be first-generation homebuyers?

No. CHFA states it directly: if multiple borrowers will be on the loan, only one borrower must be a first-generation homebuyer.

That means a couple can qualify even if one spouse grew up in a family that owned a home. As long as one borrower meets the first-generation definition, that piece of eligibility is satisfied.

The catch is the second requirement. Every borrower on the mortgage — not just the first-generation one — must also be a first-time homebuyer under CHFA’s definition.

So before counting on the program, each co-borrower needs to check their own ownership history against the first-time test described below.

How CHFA defines a first-generation homebuyer

The CHFA FirstGeneration program defines a first-generation homebuyer as a borrower who has never owned a home and whose parents or guardians never owned a home during the homebuyer’s lifetime.

Notice the definition has two parts, and both must be true for the qualifying borrower.

The borrower’s own history

The first-generation borrower must have never owned a home. This is stricter than the first-time homebuyer test — it is not a look-back over the last three years, it is never.

Any prior ownership interest in a home, no matter how long ago, would conflict with this part of the definition for the borrower claiming first-generation status.

Parents and guardians

The second part looks backward a generation: the borrower’s parents or guardians must never have owned a home during the borrower’s lifetime.

CHFA frames this as the reason the program exists. First-generation buyers often did not have the benefit of intergenerational wealth — previous generations able to pass down a home or the equity gained in one.

Questions about a legal guardian, a step-parent, or a parent whose ownership ended before the borrower was born are exactly the kind of detail to walk through with a CHFA Participating Lender before signing the affidavit.

The foster care exception

Borrowers who lived in the foster care system do not need to meet the first-generation definition. They must, however, have never owned a home themselves.

This exception recognizes that applying a parents-or-guardians test to someone raised in foster care would not make sense. With the definitions covered, the next question is the separate first-time rule that applies to everyone on the loan.

The rule that applies to every borrower: first-time homebuyer status

While only one borrower must be first-generation, all borrowers must be first-time homebuyers.

CHFA defines a first-time homebuyer as someone who has not owned a home in the prior three years.

This distinction matters in practice. A co-borrower who owned a home years ago but sold it well before the last three years can still be a first-time homebuyer under this definition — even though that same person could not be the qualifying first-generation borrower, since first-generation status requires never having owned.

Here is how the two tests compare side by side:

Requirement	Who it applies to	What it means
First-generation homebuyer	At least one borrower on the loan	Has never owned a home, and parents or guardians never owned a home during the borrower’s lifetime (foster care exception applies)
First-time homebuyer	All borrowers on the loan	Has not owned a home in the prior three years
Validation	The first-generation borrower	Signs an affidavit, provided by the lender, attesting to the definition

Once every borrower clears the applicable test, the next step is documenting it in the mortgage file.

How first-generation status is verified

CHFA does not ask for a family tree or decades of property records. The borrower claiming first-generation status submits an affidavit, provided by their lender, attesting that they meet the definition.

An affidavit is a sworn statement, so accuracy matters. If anything in a borrower’s history is unclear — a guardian situation, a possible past ownership interest, time spent in foster care — raise it with the loan officer before the affidavit is signed, not after.

Your lender handles the form as part of the normal mortgage eligibility process; the borrower’s job is simply to answer honestly. With verification covered, it helps to understand what the program actually delivers.

What the CHFA FirstGeneration program provides

CHFA FirstGeneration pairs down payment assistance with a CHFA first mortgage loan, so eligible buyers can use less of their own savings for the down payment and other upfront costs of purchasing.

Deferred repayment

Repayment of the assistance loan balance is deferred until certain events: payoff of the first mortgage loan, sale of the home, refinance of the home, or the home no longer being the borrower’s primary residence.

In other words, there is no scheduled monthly payment on the assistance during normal ownership of the primary residence — repayment is triggered by those specific events.

It must be paired with a CHFA first mortgage

The down payment assistance cannot stand alone. CHFA requires the assistance to be paired with the CHFA FirstGeneration first mortgage loan program.

That means borrowers cannot bring the assistance to an unrelated loan from another program; the first mortgage and the assistance travel together.

Pairing with other down payment programs

CHFA does allow other down payment programs to be combined with FirstGeneration, with conditions: the additional program must be considered a community second, meet all underwriting guidelines, and sit in third lien position if applicable.

Stacking assistance in this way adds moving parts to the mortgage file, so coordinate early with the lender. The good news on timing comes next.

No limited funds and no application window

CHFA states the FirstGeneration program is ongoing. There is no limit on the funds allocated to it and no limited application period.

Practically, that means buyers are not racing a deadline or a pool of money that runs dry. CHFA’s own framing: the program will be here when you are ready.

That is especially relevant for military households around Colorado Springs, where a PCS timeline — not a program deadline — usually dictates when a purchase happens. Which brings us to the local picture.

Why this matters for Colorado Springs buyers

Colorado Springs is a heavily military market, and co-borrower questions come up constantly: one spouse grew up in a homeowning family, the other did not; one partner owned a condo before enlisting; a buyer spent part of childhood in foster care.

The CHFA FirstGeneration rules handle all of these through the same two tests — one borrower must be first-generation, and everyone must be first-time.

A loan officer at a CHFA Participating Lender can map a specific household’s history onto those definitions before anyone fills out an affidavit. You can also read the program description directly on the CHFA FirstGeneration program page.

What to do next

Start by writing down each borrower’s ownership history — anything ever owned, and whether parents or guardians owned a home during the qualifying borrower’s lifetime.

Then contact a CHFA Participating Lender. CHFA directs borrowers to get started this way, and the lender will confirm which borrower can claim first-generation status, verify that everyone meets the first-time homebuyer definition, and provide the affidavit.

719 Lending works with first-generation buyers across Colorado Springs and the Front Range. If you are unsure whether your co-borrower situation fits the definitions, a short conversation with a loan officer can settle it before you start shopping for a house.

Frequently asked questions

Do all borrowers need to be first-generation homebuyers under CHFA FirstGeneration?

No. If multiple borrowers will be on the loan, only one borrower must be a first-generation homebuyer. However, all borrowers on the loan must be first-time homebuyers, defined by CHFA as not having owned a home in the prior three years.

What counts as a first-generation homebuyer?

A borrower who has never owned a home and whose parents or guardians never owned a home during the homebuyer’s lifetime. Borrowers who lived in the foster care system do not need to be first-generation, but must have never owned a home.

Can my spouse be on the loan if their parents owned a home?

Yes, as long as at least one borrower on the loan meets the first-generation definition and your spouse qualifies as a first-time homebuyer, meaning they have not owned a home in the prior three years.

How do I prove first-generation status?

The borrower submits an affidavit, provided by their lender, attesting that they meet CHFA’s first-generation homebuyer definition. No family property records are listed as required — the sworn affidavit is the validation CHFA describes.

When does the CHFA FirstGeneration down payment assistance get repaid?

Repayment of the assistance loan balance is deferred until events such as payoff of the first mortgage loan, sale of the home, refinance of the home, or the home no longer being your primary residence.

Can I use the assistance with a different first mortgage?

No. CHFA requires the down payment assistance to be paired with the CHFA FirstGeneration first mortgage loan program. Other down payment programs may be added only as a community second that meets underwriting guidelines and sits in third lien position if applicable.

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719 Lending Inc. is not affiliated with or endorsed by HUD, FHA, VA, USDA, CHFA, the CFPB, or any government agency.

Last updated: October 2026