Updated September 24, 2026 · Mike Certo, NMLS #260555

Denver metroDPA and denFirstGen: what the program guides actually say

Denver runs the down payment assistance that most Front Range buyers end up using, and a lot of what gets written about it online is wrong in one specific, expensive way. The assistance is not forgiven. This page works from the September 14, 2026 program guides.

What is metroDPA and who runs it?

metroDPA is a first mortgage plus down payment assistance program sponsored by the Metro Mayors Caucus and administered by the City and County of Denver. Denver sets the rate, term and points and markets the program. Participating lenders take the application, underwrite and close. The loans are then purchased by a master servicer, either The Money Source or U.S. Bank, and the two tracks have separate guidelines.

That split matters more than it sounds. denFirstGen only exists on the Money Source track. The two servicers publish different guide revisions on different dates, so a figure pulled from the wrong one can be months stale.

Is metroDPA assistance forgiven, or repaid?

Repaid. The program guide is unambiguous: assistance is in the form of a 0% interest, 30-year deferred second mortgage that is never forgiven. Repayment is deferred, not waived. The second becomes payable in full on sale, on transfer, on satisfaction or refinance of the first mortgage, or when the borrower ceases to occupy the property.

People often read "0% interest" and "deferred" and hear "grant." Those are different things. A deferred second with no forgiveness clause is a real lien that has to be paid off at closing when the home sells. Plenty of pages still describe metroDPA as forgivable after three years. Mike's view is that this is the single most damaging error circulating about Colorado down payment assistance, because a buyer who believes it will plan a move-up purchase around equity that is not actually theirs.

A borrower can prepay the first mortgage any time without penalty. The assistance is calculated on the note amount and funded by the lender, and it can go toward down payment, closing costs, prepaids, or to fund real estate commission. There is no cash back. If assistance is left over, because the amount is a fixed percentage, the remainder is applied as a principal reduction.

Where does metroDPA actually apply?

Not everywhere in Colorado, despite what the program's own consumer site suggests. The Eligible Areas document limits loans to the incorporated areas of a specific city list, plus the unincorporated areas of ten participating counties. Lenders get notified as other counties join.

The incorporated list runs well past the obvious Denver suburbs. Fort Collins, Greeley, Loveland, Longmont, Timnath, Windsor, Berthoud and Wellington are on it. So are small towns most buyers would not expect: Lochbuie, Dacono, Platteville, Keenesburg, Deer Trail, Ault, Eaton, Johnstown and Mead. Closer in you have Arvada, Aurora, Commerce City, Edgewater, Englewood, Federal Heights, Golden, Lakewood, Littleton, Northglenn, Sheridan, Superior, Thornton, Westminster and Wheat Ridge.

The counties, for unincorporated parcels only, are Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert, Jefferson, Larimer and Weld. Each carries a named list of communities. Unincorporated Douglas County covers Highlands Ranch, Castle Pines Village, Sterling Ranch, Stonegate, The Pinery, Franktown and Sedalia. Unincorporated Jefferson County covers Evergreen, Conifer, Applewood, Aspen Park, Bergen Park and Columbine.

The program document carries its own warning worth repeating: a mailing address is not always an accurate indication of where a property is located, and verifying the lending area is the lender's responsibility. A Highlands Ranch mailing address does not prove the parcel is in unincorporated Douglas County.

What are the 2026 metroDPA income limits?

Two sets. FHA, USDA Rural Development and VA loans use qualifying income as reported on the 1003. Conventional loans follow Fannie Mae and Freddie Mac income rules, and the limit splits at 80% of area median income.

Buyers at or below 80% AMI get reduced-cost mortgage insurance on Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans. Above 80% AMI, standard PMI applies. The automated underwriting findings from Desktop Underwriter or Loan Product Advisor are what determine which side of the line a file lands on, so that is where to look rather than guessing from a pay stub.

One stale figure to watch: the consumer-facing metroDPA site still shows an income ceiling of $210,150. The current program guide shows $216,000 effective May 1, 2026. Work from the guide.

Which metroDPA product fits?

There are three, and the choice is about whether a buyer needs assistance at all and what they are willing to pay in points to get a better rate structure.

Assistance percentages and rates sit on a daily offerings chart and move, so this page does not quote them. Once a loan is reserved, the rate and assistance hold as long as the file is delivered on the guide's timetable. Reservations run Monday through Friday, 8:00 a.m. to 6:00 p.m. Mountain, excluding holidays. Reserving the first mortgage reserves the assistance automatically.

What is denFirstGen and who qualifies?

denFirstGen is a separate program for first-generation, first-time buyers purchasing in the City of Denver. It pays $30,000 in assistance, capped so the amount does not exceed 20% of the purchase price, in the same structure as metroDPA: a 0% interest, 30-year deferred second that is never forgiven.

Two constraints narrow it sharply. The financing is FHA only, with USDA Rural Development, VA and conventional loans all ineligible. And the borrower plus their spouse, including a non-purchasing spouse, must both be first-time buyers, on top of the first-generation test. A veteran buyer who would otherwise use VA entitlement has to weigh $30,000 in Denver assistance against the VA loan's no-down-payment structure and absence of mortgage insurance. That math does not always favor the assistance.

The rest of the frame, from the 09/14/26 guide: combined loan-to-value may not exceed 105%, the front-end DTI ceiling is 38% and the back-end is 43%, occupancy is required within 60 days of closing, and there is no purchase price limit and no minimum loan amount. A 50 basis point loan level price adjustment was added on 09/14/26 for two-unit properties and manufactured housing. Manufactured homes carry a $75,000 minimum loan amount, and single-wide and double-wide are both allowed. The appraisal has to show at least 30 years of remaining useful life, and an NSPIRE inspection has to be completed within 90 days of the loan commitment.

There is no recapture tax in the program. Title insurance is not required on the second mortgage.

How does denFirstGen calculate household income?

This is where files break, and it is worth understanding before anyone gets attached to a house. denFirstGen does not use the qualifying income a lender runs for credit underwriting. It annualizes income rather than averaging it, and it counts every person who will live in the home, including household members who are not parties to the transaction.

The count includes the borrower, a spouse, other family members even when they are not on the loan, and dependents under 18, disabled dependents and full-time students. Annual income captures all monetary and non-monetary amounts received by or on behalf of the head of household, spouse or co-head, anything anticipated over the 12 months after underwriting, and income derived from assets any household member can reach.

Assets get verified for every household member age 18 or older. Checking accounts need six months of statements, or a six-month average balance through a verification of deposit. Savings, retirement, stock and other accounts need one month. Verifications have to be dated within six months of initial eligibility.

The practical consequence: a two-earner couple with an adult sibling living in the home has a three-person household, and that sibling's income counts toward the $129,600 ceiling even though they are not buying anything. It is important to understand that this is a program eligibility test running alongside credit underwriting, not the same test.

metroDPA or denFirstGen?

For most Front Range buyers the answer is metroDPA, simply because denFirstGen's geography and FHA-only rule exclude them. For a first-generation buyer inside Denver city limits who is going FHA anyway, $30,000 is a large number and worth the extra documentation.

What about the homebuyer education requirement?

Both programs require it, and the timing is strict. Every borrower and everyone on title has to complete homebuyer education, and post-closing education is not acceptable. The course has to meet the HUD standards for homeownership education and counseling or the National Industry Standards.

Accepted options include HUD-approved education providers in Colorado, eHomeAmerica, Fannie Mae HomeView, Framework, Freddie Mac CreditSmart, and CHFA-approved providers. Education from a mortgage insurance company is acceptable, though the lender carries responsibility for confirming it meets the standard. For denFirstGen the requirement is counseling from a HUD-approved housing counseling agency.

FAQ

Is metroDPA down payment assistance forgiven?

No. The metroDPA program guide (revised September 14, 2026) describes the assistance as a 0% interest, 30-year deferred second mortgage that is never forgiven. Repayment is deferred, not waived. The balance comes due when the home is sold or transferred, when the first mortgage is paid off or refinanced, or when the borrower stops occupying the property.

Does metroDPA cover the whole state of Colorado?

No. The program's Eligible Areas document limits lending to the incorporated areas of a named city list and the unincorporated areas of ten counties: Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert, Jefferson, Larimer and Weld. A mailing address does not reliably show which jurisdiction a property sits in, so the lender has to verify the parcel.

What is the metroDPA income limit for 2026?

For FHA, USDA Rural Development and VA loans, and for conventional loans above 80% of area median income, the limit is $216,000 in all ten eligible counties, effective May 1, 2026. Conventional loans at or below 80% AMI use lower county figures effective June 13, 2026, ranging from $102,400 in Weld County to $120,000 in Boulder County.

What credit score does metroDPA require?

A 620 minimum FICO applies to FHA, VA, USDA and conventional loans under metroDPA, and the middle score has to meet or beat it. If FHA, VA, USDA, Fannie Mae or Freddie Mac sets a higher floor for the loan type, that higher floor governs. A participating lender may also apply its own higher minimum.

Do you have to be a first-time buyer to use metroDPA?

No. The metroDPA guide states there is no first-time homebuyer requirement, and no restriction on using the program more than once. denFirstGen is the exception: it requires first-time buyer status for the borrower and the spouse, including a non-purchasing spouse, plus first-generation status.

How much assistance does denFirstGen provide?

denFirstGen provides $30,000, capped so the assistance does not exceed 20% of the purchase price. It takes the same form as metroDPA assistance: a 0% interest, 30-year deferred second mortgage that is never forgiven. The property has to be in the City of Denver.

Can denFirstGen be used with a VA or conventional loan?

No. denFirstGen is FHA only. The program guide states that USDA Rural Development, VA and conventional loans are not eligible. A buyer who wants VA or conventional financing would look at the standard metroDPA products instead.

How does denFirstGen count household income?

denFirstGen annualizes income rather than averaging it, and it counts everyone who will live in the home, including household members who are not on the loan. That is a different calculation from the qualifying income used for credit underwriting, so a file can pass credit underwriting and still exceed the denFirstGen limit. Limits run from $100,800 for a one-person household to $190,100 for eight, effective August 28, 2026.

Is there a recapture tax on metroDPA or denFirstGen?

No. The denFirstGen program guide states plainly that there is no recapture tax in the program. Recapture tax applies to some mortgage revenue bond programs, where a borrower who sells within nine years at a gain and above certain income can owe a portion back to the IRS.

Is there a purchase price limit on metroDPA?

No. Neither metroDPA nor denFirstGen sets a purchase price cap. Agency loan limits still apply, so an FHA file is bound by the FHA limit for the county. That absence of a price cap is unusual among down payment assistance programs and it matters in Boulder and Douglas counties, where a price cap would rule out much of the inventory.