The Colorado mortgage market
Overview
Colorado's housing market is shaped by Denver (the largest metro) and the Front Range corridor that extends from Fort Collins south through Colorado Springs and Pueblo. Mountain resort towns (Aspen, Vail, Telluride, Steamboat) have some of the highest home prices in the U.S., with corresponding higher conforming limits in Eagle, Pitkin, and Garfield counties.
Colorado property taxes are unusually low (0.51%–0.65% effective) because of the way assessed value is calculated — residential property is assessed at only 6.95% of market value for tax purposes. This produces noticeably lower escrow payments than comparable home prices in Texas or much of the Midwest. Homeowners 65+ may qualify for additional senior property tax exemptions.
Colorado Housing and Finance Authority (CHFA) programs provide both first mortgages and down-payment assistance grants that don't require repayment for qualifying borrowers. Combined with strong federal program access (FHA, VA, USDA) and Metro Mortgage Assistance Plus in the Denver area, first-time buyers in Colorado have meaningful options even in the state's high-price markets.
Colorado loan programs & assistance
State-specific programs that layer with FHA, VA, USDA, and conventional financing.
Frequently asked questions
Why are Colorado property taxes so low?+
Colorado assesses residential property at only 6.95% of market value (versus 100% in most states), then applies the millage rate to that assessed value. The effective rate is 0.51%–0.65% in most counties — among the lowest in the U.S. This produces escrow payments that are noticeably lower than comparable home prices in many other states.
What is the conforming loan limit in Denver?+
Denver County and most Front Range counties use the baseline $766,550 conforming loan limit for 2026. Mountain resort counties (Eagle, Pitkin, Garfield) have a high-balance limit of $977,500 to reflect higher property values in those areas.
Are there special programs for Denver buyers?+
Yes. Metro Mortgage Assistance Plus provides a grant of up to 4% of the first mortgage amount for buyers in qualifying Denver-area census tracts. Combined with CHFA's Down Payment Assistance grant, eligible buyers can come to closing with very little cash out of pocket.
How do CHFA grants compare to deferred-payment assistance?+
CHFA's Down Payment Assistance is structured as a true grant — no repayment required as long as the buyer meets the program guidelines and stays in the home as a primary residence. This compares favorably to many other state programs that structure assistance as a deferred-payment second mortgage requiring repayment at sale or refinance.