Question 1

What down payment assistance programs are available in Colorado?

Accepted Answer

Colorado offers several DPA programs: CHFA (Colorado Housing and Finance Authority) provides up to 4% as a grant or second mortgage; MetroDPA offers up to 4% in the Denver metro area; many individual counties and cities have their own programs. Some are grants (free money) while others are forgivable loans that disappear after you live in the home for a set period.

Question 2

Do I have to pay back down payment assistance?

Accepted Answer

It depends on the program. CHFA grants do not need to be repaid. Forgivable second mortgages (like many county programs) are forgiven after 3-5 years of living in the home. Deferred-payment second mortgages are repaid only when you sell, refinance, or move out. We'll help you find the programs with the most favorable repayment terms.

Question 3

What are the income limits for DPA programs in Colorado?

Accepted Answer

Income limits vary by program and county. CHFA programs typically cap household income at $150,000-$175,000 depending on the county and household size. Some local programs have lower limits targeting moderate-income buyers. Income limits are based on total household income, not just the borrower(s) on the loan.

Question 4

Can I combine DPA with an FHA or conventional loan?

Accepted Answer

Absolutely. Most DPA programs in Colorado are designed to layer on top of FHA, conventional, or VA first mortgages. For example, you could use an FHA loan (3.5% down) with a CHFA grant covering most or all of that 3.5%, resulting in very little out-of-pocket cost. We'll structure the optimal combination for your situation.

Question 5

Do I need to be a first-time homebuyer for DPA?

Accepted Answer

Most DPA programs require first-time homebuyer status (haven't owned in 3 years), but not all. CHFA offers programs for repeat buyers in certain targeted areas. Veterans are often exempt from the first-time buyer requirement. Some local programs also have exceptions for buyers in underserved communities.

Question 6

How much can I receive in down payment assistance?

Accepted Answer

Amounts vary by program: CHFA grants provide up to 4% of the first mortgage amount (around $12,000-$20,000 for most loans). MetroDPA provides up to 4% as well. Some local programs offer $10,000-$25,000 in assistance. In some cases, you can combine multiple programs for even greater support.

Down Payment Assistance Programs in Colorado

How DPA Programs Help You

Grants (Free Money)

Forgivable Loans

Closing Cost Help

Minimal Out-of-Pocket

Colorado DPA Programs

CHFA Grant

CHFA Second Mortgage

MetroDPA

County Programs

City Programs

General Eligibility Requirements

Down Payment Assistance FAQ

Pair DPA With These Loans

Areas With DPA Programs

Find Out What DPA You Qualify For