How do I qualify for down payment assistance in Colorado?

The common threads are buying a primary residence, meeting the program's household income and purchase price limits, and meeting the credit minimum of the first mortgage. Some programs require homebuyer education. We check your numbers against current limits, which change each year.

Does down payment assistance have to be paid back?

Sometimes. Grants never do. Forgivable second loans go away after you live in the home for the required period. Repayable second loans are due when you sell or refinance, usually with little or no interest. We will put the terms of each option in front of you plainly.

Can I combine down payment assistance with a low down payment conventional loan?

Usually, yes, as long as the lender is approved for both. Pairing a low down payment first mortgage with an assistance second is one of the most common ways Colorado buyers close with very little cash.

Is down payment assistance only for first-time buyers?

Not always. Some Colorado programs, including certain CHFA and metroDPA options, are open to repeat buyers who meet income and other requirements. Each program defines eligibility differently.

Can veterans use down payment assistance with a VA loan?

Sometimes. Some programs list VA first mortgages among their options. Because eligible veterans with full entitlement can buy with $0 down, assistance is often used for closing costs. Our VA down payment assistance guide covers the details.

What is the difference between a grant and a forgivable second?

A grant generally does not have to be repaid. A forgivable second is a loan that goes away after you meet conditions, such as living in the home for a set time. If you sell or refinance early, part or all of it may be due.

Do I need a homebuyer education class for assistance?

Most programs require one, including CHFA. Take it early, because certificates can expire and some programs accept only certain providers.

Which program is best in Colorado?

There is no single best program. The right one depends on the property's location, your income, the price, and how long you plan to stay. We compare the options for your actual scenario.

Can I use assistance on a condo?

Often, if the condo project meets the first mortgage's approval requirements and the program allows it. We check the building and the program rules before you make an offer.

How long does getting assistance add to the timeline?

It adds some paperwork, not months. Files with assistance close on normal purchase timelines when the documents come in early. Tell us up front that you want it considered so we build it into the schedule from day one.

Buyer guide

Down payment assistance in Colorado

Cash for your down payment and closing costs, where it comes from, who qualifies, and what it costs you back.

Reviewed by Ben Binger, Mortgage Loan Originator, NMLS 1322594

Last updated October 26, 2026

A house fund savings jar, house keys, and mortgage paperwork on a kitchen table while a buyer points to a line in the documents

The biggest myth in homebuying is that you need a huge down payment. In Colorado, you usually do not. Down payment assistance exists precisely to bridge the gap between what you have saved and what the loan requires.

This guide compares the main Colorado programs side by side, explains how assistance affects your first mortgage, and walks through eligibility and timing. Use the list below to jump ahead.

What down payment assistance actually is

Assistance is money that goes toward your down payment or closing costs, provided by a state agency, local government, or nonprofit. It usually arrives as a second loan or a grant that pairs with your main mortgage, so you bring little or no cash of your own to closing.

The three common structures: a grant you never repay, a forgivable second loan that disappears after you live in the home for a set number of years, and a repayable second loan with little or no interest that comes due when you sell or refinance.

Colorado programs compared

A quick map of the programs Colorado buyers ask about most. Structures and terms are set by each administrator and change, so use the official page linked from each program name and confirm current guidelines with us.

Program	Area served	Assistance type
CHFA	Statewide	Grant or second mortgage options, paired with a CHFA first mortgage
metroDPA	Participating Front Range communities, including Denver	Second mortgage assistance through approved lenders; review repayment terms
Pikes Peak Down Payment Assistance	El Paso County and Colorado Springs	Down payment and closing cost help through participating lenders; confirm current structure
DCHP	Douglas County	Homebuyer programs for eligible buyers; offerings change, confirm current options
Adams County	Adams County	County housing resources; confirm which homebuyer options are currently offered
City of Aurora	City of Aurora	Down payment and closing cost assistance for income-qualified buyers purchasing in the city

Common structures: a grant may not need repayment, a forgivable second goes away after conditions are met, a deferred second is repaid when you sell or refinance, and a repayable second has a scheduled payment. Each program's own documents control.

How to choose the right program

The best program is the one that fits your income, the property's location, and how long you plan to stay. Here is how we narrow it down.

Location first: Local programs only work inside their service area, so the address decides what is available.
Then income and price: Check the household income limit and any purchase price cap.
Then the trade: Compare the first mortgage pricing and repayment terms with and without assistance.
Then your timeline: If you may sell or refinance soon, a repayable or deferred second matters more.

How assistance affects your first mortgage

Assistance is not free-floating money. It is tied to a first mortgage, and that pairing can change the loan. Some programs require their own first mortgage, as CHFA does. Others work only with certain loan types and approved lenders. First mortgage pricing with assistance can differ from the same loan without it.

The second loan also counts. Even a deferred second with no monthly payment gets recorded on the title and must be addressed when you sell or refinance. We show you the full package so the decision is clear.

CHFA loans in Colorado, explained

CHFA down payment assistance

The Colorado Housing and Finance Authority pairs its first mortgage programs with assistance for the down payment and closing costs. Expect a homebuyer education class, and expect income and purchase price limits that update annually and vary by county.

CHFA loans are offered through participating lenders. As a broker we know which of our wholesale mortgage banks carry them, so you are not stuck calling around.

Metro and local programs

Compare CHFA with metroDPA and Pikes Peak Down Payment Assistance in El Paso County. Denver also lists income-restricted affordable homes. Aurora HOAP offers down payment and closing cost help for income-qualified buyers purchasing in the city. Review DCHP, nonprofit, and Adams County resources for the property you are considering.

Program details change often enough that a list printed six months ago can mislead you. We verify what is currently available for your city, income, and price range before recommending anything. Our first-time buyer guide breaks each of these programs down one by one.

Who qualifies

Typical requirements: you will live in the home as your primary residence, your household income falls under the program's limit, the purchase price sits under the program's cap, and your credit meets the loan's minimum. Many programs do not actually require you to be a first-time buyer.

Limits change every year. The fastest way to know where you stand is to have us check your numbers against the current ones.

Income limits: Based on household income and size, set by each program and often by county.
Purchase price limits: Many programs cap the price of the home.
Credit: The first mortgage's credit requirements apply, and some programs add their own.
Education: Many programs require a homebuyer education course before closing.
Owner occupancy: You must live in the home as your primary residence.

Common myths, cleared up

Assistance is not only for very low incomes. Many programs serve moderate income buyers who earn too much to be considered low income but not enough to save a large down payment on a Colorado salary.

Assistance can change the first mortgage pricing and add repayment obligations. Compare the entire loan package with and without assistance, not just the cash needed today.

How to apply

Some programs are arranged through a participating lender; others require an agency application or counseling first. Ask which path applies before you write an offer. Bring income documents, asset statements, the intended property address, and your homebuyer education certificate if required.

Compare assistance before you choose

Help at closing is only one part of the decision. Ask for an itemized comparison with and without assistance for the same home.

Grant: Confirm whether any repayment or recapture conditions apply.
Deferred second: Ask what happens when you sell, refinance, transfer the home, or pay off the first mortgage.
Forgivable second: Check occupancy and payment conditions; forgiveness is not automatic if those conditions are missed.
Total cost: Compare the first mortgage, second loan, closing charges, and expected ownership timeline.

What to confirm for your address

A mailing address is not always a city's legal boundary. Assistance eligibility follows the program's actual service area.

Location: Confirm city and county eligibility using the property address.
Household: Ask whose income is counted and which documents are required.
Education: Finish any required homebuyer counseling early.
Funding: Confirm that applications are open and funds can be reserved.
Property: Ask about condos, new construction, and occupancy rules before committing.

Official program resources

Use the administrators' current information when checking availability. A listing here is not confirmation of approval or funding.

What buyers ask about assistance

Questions about your own numbers?

Call or text 720-386-4071, or start the application and we will follow up the same day. The conversation is free, and the math is yours to keep.

Get Pre-Approved Call or text 720-386-4071