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 the lesser of $25,000 or 3% of the first mortgage, a true grant, never repaid.
- DPA Second Mortgage: Up to the lesser of $25,000 or 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: A separate flat $25,000 deferred second for buyers who have never owned and whose parents or guardians never owned, subject to current CHFA funding and reservation availability.
- Requirements: 620 middle score for all borrowers, $1,000 minimum from your own funds, county income limits, CHFA-approved homebuyer education before closing.
Assistance always rides on top of a first mortgage, so the loan underneath matters as much as the grant. If you're buying your first home, the Colorado first-time buyer loan guide walks through how FHA, USDA, and Conventional 97 pair with these CHFA structures, and who counts as a first-time buyer under the three-year rule.
Metro and county programs
- metroDPA (Denver metro): Up to 5% of the loan amount, 0% interest, fully forgiven after 3 years; Front Range coverage; 2026 income limit $210,150; 620 minimum score. Its former Social Equity option is no longer offered, 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 the lesser of $25,000 or 3% of your first mortgage that is never repaid, or a second mortgage up to the lesser of $25,000 or 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 the lesser of $25,000 or 3% of your first mortgage) is never repaid. The alternative, CHFA's second mortgage (up to the lesser of $25,000 or 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. The maximum debt-to-income ratio is set by CHFA's program matrix and automated underwriting, so we confirm your exact ceiling against your scenario before you apply.
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, subject to current CHFA funding and reservation availability.
What is metroDPA and who qualifies?
The Denver metro's Front Range program: up to 5% of your loan amount as a 0%-interest second that is fully forgiven after three years in the home, with a 2026 income limit of $210,150 and a 620 minimum score. Its former Social Equity option is no longer offered; ask us about current alternatives.
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.