VA Down Payment Assistance in Colorado

Start with entitlement and cash to close

VA down payment assistance is usually a state or local assistance program paired with a VA first mortgage, not a separate VA grant. Assistance must satisfy both the program's rules and VA and lender requirements.

• Full entitlement: VA does not impose a county loan limit for eligible borrowers with full entitlement. Lender approval and the appraisal still matter.
• Remaining entitlement: An existing VA loan or prior loss can affect how much entitlement you have available. A down payment may be required.
• Closing costs: Ask for an itemized estimate of lender, title, appraisal, recording, and other charges.
• Prepaids: Budget separately for insurance, taxes, prepaid interest, and escrow deposits.

• VA entitlement and loan limit guidance

Colorado programs and a VA first mortgage

metroDPA and Pikes Peak program materials list VA first mortgage options. For CHFA, DCHP, Adams County resources, and Aurora HOAP, confirm the specific assistance option and whether its administrator and participating lender allow it with your VA loan. A local housing resource is not automatically a VA-compatible assistance program.

• Eligibility: Each administrator sets its own income limits, service area, buyer and property requirements, and terms. These change.
• Pairing: Confirm permitted first mortgage types, lender participation, and how assistance may be used for your VA purchase.
• Repayment: Understand whether assistance is a grant or second loan, and what happens when you sell, refinance, or move.
• Comparison: Assistance can affect first mortgage pricing. Compare the complete loan package, not just today's cash to close.

VA loan closing cost assistance from the seller

Your agent can negotiate for the seller to pay eligible closing costs and make VA-allowed concessions. VA treats ordinary seller-paid buyer closing costs differently from concessions, such as payment of the VA funding fee or prepaid taxes and insurance. Concessions have a VA limit; ordinary closing-cost payments are not counted toward that concession limit.

• Have the lender classify each proposed credit before finalizing the contract.
• Seller credits must go toward permitted, actual charges. They are not unrestricted cash back.
• A seller is not required to contribute. Build a backup plan for your cash to close.

• VA funding fee, closing costs, and seller concessions

Lender credits: compare the tradeoff

A lender credit can offset eligible closing costs, often in exchange for a higher interest rate. It is a pricing choice, not free money. Compare the payment and total borrowing costs with and without the credit for the time you expect to keep the loan.

• Review credits and charges on the Loan Estimate.
• Ask whether lender credits can be combined with your assistance program.
• Confirm the final credit on the Closing Disclosure before signing.

• CFPB explanation of points and lender credits

VA disability compensation and the funding fee

Veterans receiving VA compensation for a service-connected disability are exempt from the VA funding fee. The exemption also covers veterans eligible for that compensation but receiving retirement or active-duty pay instead. Other exemptions may apply under VA rules. We confirm the exemption on your Certificate of Eligibility and with the lender.

• VA funding fee exemptions and refunds

CHFA: statewide assistance

The Colorado Housing and Finance Authority offers down payment and closing cost assistance with eligible CHFA first mortgages. Buyers choose an eligible grant or second mortgage option. Ask a participating lender to confirm which current CHFA first mortgage product supports your VA loan and assistance combination.

• Official CHFA down payment assistance options

metroDPA: participating communities

metroDPA provides assistance through a deferred second mortgage for eligible buyers in participating communities. Official program material lists VA as an eligible first mortgage type. Confirm your address, household income, lender participation, permitted uses, and repayment triggers.

• Official City of Denver metroDPA program

DCHP: Douglas County buyers

Douglas County Housing Partnership offers homebuyer assistance for qualifying first-time buyers in Douglas County. Ask DCHP to confirm its current first mortgage requirements and whether its second mortgage assistance is permitted with your VA financing. Review household income, buyer education, and repayment terms before relying on assistance.

• Official Douglas County Housing Partnership programs

Adams County: start with the exact address

Adams County housing resources can help buyers locate relevant city and partner programs. The county's housing resource listing is not proof of a dedicated countywide VA assistance loan. Identify the specific program for your address, then ask its administrator about VA compatibility, eligible costs, income limits, and repayment terms.

• Official Adams County housing resources

Colorado Springs: assistance around your PCS

Buying near Fort Carson, Peterson Space Force Base, Schriever Space Force Base, or the United States Air Force Academy (USAFA)? Pikes Peak Down Payment Assistance is an El Paso County resource to compare with statewide and other geographically eligible options.

• Confirm the home's address is within the program's service area.
• Bring PCS orders, military income documents, and details of any existing VA loan early.
• Match education, assistance reservations, and occupancy requirements to your contract and orders.

• Official Pikes Peak Down Payment Assistance program

Aurora: buying near Buckley

For buyers near Buckley Space Force Base, compare City of Aurora HOAP with CHFA and metroDPA where the property and borrower qualify. HOAP offers down payment and closing cost assistance to income-qualified buyers purchasing a home in Aurora. Confirm whether the specific assistance can be paired with your VA loan.

• Use the property's legal city and county boundaries, not only its mailing address.
• Ask about household income, counseling, lender participation, and repayment terms.
• Include commute, taxes, insurance, and association dues in your ownership budget.

• Official City of Aurora HOAP program

Your benefit, an independent mortgage team

Ben Binger, NMLS #1322594. Equal Housing Opportunity. Alloy Mortgage is not affiliated with the U.S. Department of Veterans Affairs.

This guide is education, not a commitment to lend or a guarantee of assistance. VA eligibility, lender approval, and each assistance program's requirements apply. Program eligibility, income limits, and terms are set by the administrators and may change.