Unlocking Homeownership: A Guide to Down Payment Assistance Programs in Colorado

Why Down Payment Assistance Matters

If you’ve ever stared at Denver’s home prices and wondered, “How in the world am I supposed to pull together a 20% down payment?”—you’re definitely not alone. In a market where just getting your foot in the door can feel impossible, down payment assistance (DPA) programs could be the difference between renting forever and holding those house keys.

Down payment assistance comes in many forms—from grants and low-interest loans to forgivable second mortgages—all designed to help you clear the biggest financial hurdle in home buying.

What Kinds of Down Payment Assistance Can You Get in Colorado?

Colorado, and the Denver metro area in particular, leads the way in making homeownership more achievable. Here’s how the main programs stack up:

1. Colorado Housing and Finance Authority (CHFA)

When it comes to down payment help at the state level, CHFA is often the top contender. CHFA’s programs are tailored to both first-time and repeat buyers, delivering:

• Up to $25,000 in down payment and closing cost assistance
• Multiple loan types, including FHA, VA, USDA, and conventional
• Help available as a grant (no repayment) or a low-interest second mortgage
• Flexible income limits—up to $162,900 in most cases
• Minimum credit score requirement: 620

Bonus Tip: Many lenders and local real estate agents (including us at Russ Porter) partner directly with CHFA and can help you see if you qualify.

Homeownership is still attainable in Colorado—sometimes you just need the right support.
— CHFA

2. Colorado Housing Assistance Corporation (CHAC)

CHAC goes the extra mile for first-time buyers with low and moderate incomes by offering:

• Low-interest, flexible second mortgages to cover down payments
• Targeted assistance for families, single parents, and those with disabilities
• Most buyers must contribute some funds (even as little as $1,000)
• Homebuyer education required

This program isn’t just about money; it’s about education and support for those ready to make the leap.

3. MetroDPA – Denver Metro Area

If you’re shopping around Denver or any of the participating metro counties, MetroDPA delivers:

• Up to 6% of your loan as assistance (often $10,000–$15,000+)
• Income limits up to $150,000
• Assistance works with FHA, VA, USDA, and conventional loans
• 30-year fixed-rate loans only

What I love about MetroDPA is that it’s sized for the reality of Denver home prices. This program can make a real dent in those steep upfront costs, especially for middle-income earners.

4. Metro Mortgage Assistance Plus

A Denver city initiative, this grant-based program aims squarely at low and moderate-income families and individuals looking to buy within the city limits. Features:

• Up to 4%–5% of your mortgage amount for down payment and closing costs
• No repayment required if you stay in your home for a set period
• Open to FHA, VA, USDA, and some conventional loans

One catch: Funds aren’t infinite. When they run out for the year, you might have to wait—so act fast if you’re interested.

5. Local and County-Specific Programs

Aurora

• Aurora’s Home Ownership Assistance Program: Up to $10,000 in zero-interest support, repaid when you sell
• Must stay within income and purchase price limitations
• Homebuyer class required

Boulder County

• Down Payment Assistance up to $50,000 for homes outside Boulder city limits
• Flexible repayment terms (often deferred until sale)
• Must meet income and purchase price requirements

Pueblo

• Home Down Payment Assistance Program (HDAP): Up to $5,000 in deferred, forgivable loans
• Funds can be used for closing costs and/or down payment
• Program is periodically closed and re-opened as funds allow

El Paso County

• Turnkey Mortgage Origination grants up to 4% of the mortgage amount
• For homes in El Paso County only
• 30-year fixed-rate requirement

Who Qualifies for Down Payment Assistance?

Qualifying is more straightforward than many buyers think, but there are a few key rules across most programs:

• Income Limits: Most programs cap eligibility based on location and family size. As of 2024, many are open to buyers with household incomes up to $150,000 or even $162,900.
• Primary Residence Requirement: You need to live in the home you buy—no investment properties allowed.
• Homebuyer Education: A short class is usually required, and honestly, it’s worth your time even if it wasn’t mandatory.
• Minimum Contribution: Most programs ask buyers to put in some of their own money—often around $1,000 or 1% of the purchase price.

Want to know exactly what you might qualify for? Reach out to an approved lender, or check with a real estate pro who’s familiar with Colorado’s DPA landscape. And remember, programs frequently adjust their terms—so the earlier you look (and the faster you act), the better!

Down Payment Assistance: Pros, Cons, and Real-World Examples

Let’s keep it real: Down payment assistance is almost always a good thing, but it’s smart to understand both the ups and the downs before you sign.

The Good Stuff

• Makes Homeownership Possible: Takes you from “maybe someday” to “right now.”
• Lower Upfront Costs: Save tens of thousands on your down payment and closing costs.
• Multiple Programs Stack: You might qualify for two programs at once.
• Educational Support: Required classes help prepare you for successful homeownership.
• Flexible Repayment/Grant Options: Some programs don’t need to be repaid at all.

The Fine Print

• Income & Price Caps: Not every program fits every buyer, especially in pricey markets.
• Funding Isn’t Unlimited: When funds run out, you’ll need to wait until they’re replenished.
• Occupancy Rules: Must live in your home as a primary residence, usually for a minimum period.
• Second Mortgages: Some assistance is a loan you’ll repay (often only when you sell or refine).

How to Apply: Your Next Steps

You don’t need to figure this out on your own! Here’s the step-by-step game plan:

1. Contact an Approved Lender
   • Find a lender familiar with the program(s) you’re interested in
2. Complete a Homebuyer Education Course
   • Most are available online and take a few hours
3. Get Pre-Qualified
   • Lenders can often pre-approve you for both your mortgage and assistance at once
4. Apply Early
   • Some programs operate on a first-come, first-served basis
5. Combine Programs
   • Ask your lender or real estate agent if stacking assistance is possible for your situation

Pro-Tips for Colorado Homebuyers

• Think Outside the Box: Some programs can be used together, maximizing your funding.
• Stay Organized: Have your recent pay stubs, tax returns, and bank statements ready.
• Be Realistic: These programs make a huge difference, but you’ll still need to budget for things like inspections and moving costs.
• Check for Updates: Program rules and funding can change quickly—visit your city, county, or Russ Porter’s website for the latest info.

Final Thoughts

Down payment assistance isn’t just “free money”—it’s a powerful tool that can help you build wealth, stability, and a place to truly call your own. Whether you’re a teacher in Aurora, an engineer in Boulder, or a first-timer in Denver, there’s likely a program out there for you.

If you’re ready to explore your options (or just want to chat about what’s out there), reach out to us at Russ Porter. We’re here to help you unlock the best Colorado has to offer—one front door at a time.