Updated · Mike Certo, NMLS #260555
Colorado Down Payment Assistance Programs Guide
Colorado's down payment help runs through CHFA plus a strong bench of metro and county programs. Here's the practical CO DPA map — grant versus second, who forgives what, and where the local money is.
CHFA program family
- CHFA first mortgages: FirstStep (FHA — first-time buyers, Veterans, and targeted areas), SmartStep (FHA/VA/USDA), Preferred (conventional with reduced mortgage insurance), HomeAccess (buyers with a disability or disabled household member).
- DPA Grant: Up to 3% of the first mortgage — a true grant, never repaid.
- DPA Second Mortgage: Up to 4% of the first mortgage — 0% interest, no monthly payment, deferred until sale, refinance, payoff, or the home stops being your primary residence. Deferred, not forgiven.
- FirstGeneration: Flat $25,000 deferred second for buyers who have never owned and whose parents or guardians never owned.
- Requirements: 620 middle score for all borrowers, $1,000 minimum from your own funds, county income limits, CHFA-approved homebuyer education before closing.
Metro and county programs
- metroDPA (Denver metro): Up to 5% of the loan amount, 0% interest, fully forgiven after 3 years; ~46 cities and 9 counties; income limit ~$210,000. Its former Social Equity option (which provided $15,000–$25,000 for buyers or descendants of residents of formerly redlined areas) ended in March 2024 when its funds were fully allocated — ask us about current alternatives with similar goals.
- El Paso County Turnkey (Colorado Springs): 0% second up to 5% of down payment/closing costs, half forgiven over 60 months — no first-time-buyer requirement.
- Aurora (2026): Up to 10% of purchase price as a silent second for buyers at or below 120% AMI — open through October 31, 2026 or until funds run out.
- CHAC (statewide): Nonprofit second mortgages for buyers at or below 80% of area median income — repaid monthly, not deferred.
Local amounts and funding windows change through the year — current as of July 2026; we confirm status at pre-approval.
National DPA programs
- Chenoa Fund — FHA-paired DPA with repayable and forgivable structures.
- Arrive Home — national DPA including an ITIN borrower path.
- Essex Mortgage / NHF — multi-tier DPA for FHA, VA, USDA, and conventional buyers.
FAQ
What down payment assistance is available in Colorado?
Colorado's main help runs through CHFA: a Down Payment Assistance Grant up to 3% of your first mortgage that is never repaid, or a second mortgage up to 4% at 0% interest with no monthly payment, deferred until you sell, refinance, or pay off the home. Local programs — metroDPA in the Denver metro, El Paso County's Turnkey, Aurora's city program, CHAC statewide — add to the menu, and we match you by location and income.
Does the CHFA down payment grant have to be paid back?
No — the CHFA grant (up to 3% of your first mortgage) is never repaid. The alternative, CHFA's second mortgage (up to 4%), is repaid only when you sell, refinance, or pay off the home — 0% interest, no monthly payment, and it is deferred rather than forgiven. You choose one structure, not both.
What credit score do you need for CHFA?
A 620 middle score for every borrower on the loan, a minimum $1,000 of your own funds (it can't be a gift), and income under your county's CHFA limit. Debt-to-income can reach 50% with a 620–659 score and 55% at 660 and up.
What is the CHFA FirstGeneration program?
A flat $25,000 deferred second mortgage for buyers who have never owned a home and whose parents or guardians never owned one either. It's statewide, pairs with a CHFA first mortgage, and repayment waits until you sell, refinance, or pay off the home.
What is metroDPA and who qualifies?
The Denver metro's program, covering roughly 46 cities and 9 counties on the Front Range: up to 5% of your loan amount as a 0%-interest second that is fully forgiven after three years in the home, with income limits around $210,000 and a 620 minimum score. Its former Social Equity option ($15,000–$25,000 for buyers or descendants of residents of formerly redlined neighborhoods) ended in March 2024 with funds fully allocated.
Does Colorado Springs have down payment assistance?
Yes — El Paso County's Turnkey program provides a 0%-interest second up to 5% of your down payment and closing costs, with half forgiven over your first five years and no first-time-buyer requirement, alongside the county's newer Pikes Peak DPA and all statewide CHFA options.
Do I have to take a homebuyer class for CHFA?
Yes — every borrower and co-borrower must complete a CHFA-approved homebuyer education course before closing. Online and classroom options both count; we help you enroll early so it never delays closing.
Does Colorado still have the First-Time Home Buyer Savings Account deduction?
No — that state tax deduction expired and is not allowed after tax year 2024, per the Colorado Department of Revenue. Some websites still promote it; the real help today runs through CHFA, metroDPA, and local programs.
Can down payment assistance cover my whole down payment in Colorado?
Often, yes. On a $450,000 home, FHA's 3.5% minimum is $15,750 — and a CHFA 4% second (about $17,700 on that loan) can cover all of it. CHFA requires just $1,000 of the funds to be your own, and closing costs of roughly 2–3% can be offset with seller credits.