Down Payment Assistance Programs in Colorado (2026)
Last updated 05/20/2026 by
Ante Mazalin
Edited by
Andrew Latham
Summary:
Down payment assistance in Colorado is primarily delivered through the Colorado Housing and Finance Authority (CHFA), which offers a grant and a deferred second mortgage — each capped at the lesser of $25,000 or a percentage of your loan amount.
First-generation buyers and qualifying public school employees have access to additional or expanded programs.
- CHFA DPA Grant: Up to $25,000 or 3% of your first mortgage, with no repayment required — the most accessible option for buyers who qualify for a CHFA loan.
- CHFA DPA Second Mortgage: Up to $25,000 or 4% of your first mortgage as a deferred loan, repaid only when you sell, refinance, or pay off the home.
- CHFA FirstGeneration: A flat $25,000 deferred second mortgage for buyers whose parents or guardians never owned a home, available statewide with no funding cap.
- metroDPA: A zero-interest 30-year deferred second mortgage sponsored by the City and County of Denver, available to first-time and repeat buyers throughout Colorado’s Front Range.
Finding enough for a down payment is the single biggest obstacle most Colorado buyers face, and it can feel like the goalposts keep moving as home prices rise. These programs exist specifically to close that gap, and in Colorado, the options are broader than many buyers realize.
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How CHFA down payment assistance works
CHFA does not lend money directly to homebuyers. Instead, it works through a network of approved lenders who originate CHFA-backed mortgages, with CHFA providing the down payment assistance alongside the loan.
All CHFA down payment assistance requires pairing with a CHFA first mortgage. You cannot access the grant or second mortgage independently. Both assistance options carry a rate premium; your interest rate will be higher than a standard market-rate loan in exchange for the down payment help.
You must complete a CHFA-approved homebuyer education course before closing. CHFA offers these courses online and in person through housing counseling agencies across Colorado, and most are free or low-cost.
CHFA down payment assistance options
CHFA offers two types of DPA that pair with its standard first mortgage programs. The grant requires no repayment; the second mortgage is deferred until a triggering event such as sale or refinance.
| Feature | DPA Grant | DPA Second Mortgage |
|---|---|---|
| Maximum amount | Lesser of $25,000 or 3% of first mortgage | Lesser of $25,000 or 4% of first mortgage |
| Repayment | None required | Deferred until sale, refinance, payoff, or home leaves primary use |
| First mortgage required | CHFA 30-year fixed | CHFA 30-year fixed |
| Rate premium | Yes — higher interest rate applies | Yes — higher interest rate applies |
| First-gen / disability exception | No | $25,000 flat (not capped at % of mortgage) |
CHFA DPA Grant
The DPA Grant provides up to the lesser of $25,000 or 3% of your first mortgage loan amount, with no repayment required at any point. On a $300,000 loan, that equals up to $9,000 in assistance.
To access the grant, you need a minimum 620 mid-score credit score, a $1,000 minimum borrower contribution, and income within CHFA’s qualifying limits. You must purchase the home as your primary residence and work through a CHFA-approved lender.
CHFA DPA Second Mortgage
The DPA Second Mortgage provides up to the lesser of $25,000 or 4% of your first mortgage — slightly more than the grant on the same loan amount. Repayment is deferred until you sell the home, refinance, pay off the first mortgage, or the home stops being your primary residence. The second mortgage itself carries a 0% interest rate — no interest accrues on the deferred balance, meaning the amount you owe at repayment equals exactly what you borrowed.
Buyers with a permanent disability, and first-generation homebuyers using the CHFA FirstGeneration program, can access a flat $25,000 through the second mortgage regardless of their loan amount. This removes the percentage cap entirely for those borrowers.
Rate premium disclosure: Both CHFA DPA options carry a higher interest rate than a standard CHFA mortgage without assistance. CHFA explicitly states that “higher interest rates apply” for all DPA products. Over a 30-year loan, this means the total cost of borrowing will be higher. For many buyers, the immediate reduction in out-of-pocket costs at closing outweighs the long-term rate premium — but run the numbers with your lender before deciding.
CHFA FirstGeneration Program
CHFA FirstGeneration provides a flat $25,000 deferred second mortgage for buyers who are the first in their immediate family to own a home. Unlike the standard DPA Second Mortgage, this amount is not tied to a percentage of the loan — every qualifying borrower receives the full $25,000.
A “first-generation homebuyer” is defined as a borrower who has never owned a home and whose parents or guardians never owned a home during the borrower’s lifetime. Borrowers raised in the foster care system qualify by having never owned a home themselves — the parental ownership history requirement does not apply to them.
If multiple borrowers are on the loan, only one must meet the first-generation definition. All borrowers must be first-time homebuyers, defined as no home ownership in the prior three years.
Repayment is deferred until you sell, refinance, pay off the first mortgage, or the home leaves primary use. There is no application period and no funding cap — the program is ongoing.
You can pair CHFA FirstGeneration with other eligible DPA programs as long as the additional assistance qualifies as a community second and would sit in third lien position if applicable.
Who qualifies for CHFA assistance
CHFA uses two different income measurement frameworks depending on which first mortgage program you use. SmartStep, Preferred, SectionEight, and HomeAccess programs use “qualifying income” with no purchase price limits. FirstStep and FirstGeneration programs use “gross annual income” with county-level purchase price caps.
| Program type / County | Max income (1-2 people) | Max income (3+ people) | Max purchase price |
|---|---|---|---|
| SmartStep / Preferred / HomeAccess (all counties) | $174,440 | No limit (max loan $832,750) | |
| FirstStep / FirstGeneration — Adams, Denver, Jefferson | $140,100 | $161,110 | $806,500 |
| FirstStep / FirstGeneration — Boulder | $150,600 | $173,190 | $806,500 |
| FirstStep / FirstGeneration — El Paso | $124,600 | $143,290 | $553,960 |
| FirstStep / FirstGeneration — Larimer | $127,600 | $146,740 | $656,640 |
| FirstStep / FirstGeneration — Weld | $149,520 | $174,440 | $715,000 |
Targeted census tracts carry higher income limits and purchase price caps than the non-targeted figures shown above. Your lender can check whether a specific property sits in a targeted area, which may open up a larger window for qualification. Income limits shown are effective January 5, 2026.
CHFA Schools To Home Program (launching July 2026)
CHFA Schools To Home is a coming-soon program for full-time Colorado public school employees, authorized by the Colorado General Assembly and funded through investment from the Public School Permanent Fund (PSPF). It is not yet available as of May 2026.
The program provides DPA in the form of a second mortgage loan for up to 25% of the first mortgage loan amount — substantially higher than any other CHFA assistance option. In exchange, the borrower agrees to share a percentage of the home’s appreciation with the PSPF when the loan is repaid.
Eligible employees include anyone employed full-time by a Colorado public school, school district, charter school, institute charter school, board of cooperative educational services (BOCES), or innovation zone. If multiple borrowers are on the loan, only one must be a qualifying public school employee.
Two education requirements apply: the standard CHFA-approved homebuyer education course, plus a separate program-specific course called “Understanding Your Financial Commitment” that covers the shared appreciation component in detail. That second course is also coming soon.
metroDPA
metroDPA is a down payment assistance program sponsored by the City and County of Denver. Despite its name, it is available throughout most of Colorado’s Front Range from Castle Rock to Wellington — not just within Denver city limits.
The program provides a zero-interest 30-year second mortgage equal to a percentage of the loan amount, with no scheduled payments. The balance is deferred until you sell, refinance, or the home leaves primary use. metroDPA does not describe the loan as forgivable — it is a deferred repayable loan.
Unlike CHFA programs, metroDPA has no first-time homebuyer requirement. Repeat buyers are fully eligible, and the program also permits refinances. There are no purchase price limits.
The income limit is $210,150 for all family sizes across all eligible counties, with additional benefits available to borrowers using a conventional loan with income below 80% of area median income. The minimum credit score is 640 (620 in some instances depending on loan type), and the maximum debt-to-income ratio is 50%. Homebuyer education is required.
| County | Income limit (all family sizes) | Below 80% AMI limit (certain conventional loans) |
|---|---|---|
| Adams | $210,150 | $112,080 |
| Arapahoe | $210,150 | $112,080 |
| Boulder | $210,150 | $120,480 |
| Broomfield | $210,150 | $112,080 |
| Denver | $210,150 | $112,080 |
| Douglas | $210,150 | $112,080 |
| Elbert | $210,150 | $112,080 |
| Jefferson | $210,150 | $112,080 |
| Larimer | $210,150 | $102,080 |
| Weld | $210,150 | $90,880 |
Loans are serviced through TMS or US Bank. The program administrator is eHousingPlus. To apply, contact a metroDPA participating lender directly — applications are processed through approved lenders, not through the program office.
How to apply for down payment assistance in Colorado
Most Colorado DPA programs are accessed through approved lenders, not directly through CHFA or metroDPA. Here are the steps to take.
- Check income and purchase price limits. Use the tables above to confirm you fall within the program limits for your target county and household size. Targeted census tracts may offer higher limits — ask your lender to check.
- Complete a homebuyer education course. All CHFA and metroDPA programs require a completed homebuyer education certificate before closing. CHFA-approved courses are available online and in person. Most take a few hours and are free or low-cost.
- Find a participating lender. CHFA has a searchable lender directory at chfainfo.com. metroDPA lenders are listed through the program site at metro-dpa.com. Confirm that the lender is approved for the specific program you want to use.
- Get pre-qualified. Your lender will run a credit check, verify income, and confirm which CHFA programs you qualify for based on your gross or qualifying income depending on the loan product. Minimum credit score is 620 for most programs.
- Select your DPA option. Review the rate premium trade-off with your lender. Compare what you gain in reduced upfront costs against the higher interest rate over the loan term. First-generation buyers should specifically ask about CHFA FirstGeneration.
- Make a $1,000 minimum contribution. CHFA requires borrowers to contribute at least $1,000 from their own funds. Verify with your lender whether this can come from a gift or must be your own savings.
- Close and take occupancy. For metroDPA, you must establish principal residence within 60 days of closing. CHFA requires the property to be your primary residence.
Other ways to lower your down payment in Colorado
FHA loans require a minimum 3.5% down payment for borrowers with a 580 credit score and can be layered with CHFA or metroDPA assistance to reduce out-of-pocket costs further. VA loans eliminate the down payment requirement entirely for eligible veterans and active-duty service members — no DPA needed in many cases.
Conventional 97 and HomeReady loans allow as little as 3% down and may carry lower long-term costs than an FHA loan for buyers with stronger credit. Ask your lender to compare the total payment across loan types before committing.
Some Colorado buyers reduce upfront costs by purchasing through a leasehold homeownership model, which separates the land from the structure. Jubilee offers this model in select Colorado communities as a path to homeownership with a significantly lower purchase price.
Down Payment Assistance in Other States
Programs vary significantly by state — income limits, assistance amounts, forgiveness terms, and lender networks all differ. These guides cover verified program details for six other states.
- Oregon: OHCS’s Flex Lending program provides 4-5% of the loan amount as a second mortgage paired with a fixed-rate first, and the OHCS DPA Program reaches up to $60,000 for first-time and first-generation buyers at or below 100% AMI.
- New Jersey: NJHMFA provides $15,000 as a zero-interest second mortgage that becomes fully forgivable after five years of continuous occupancy.
- Massachusetts: MassHousing provides $25,000 at 0% deferred, and ONE+ reaches up to $50,000 for buyers in 29 Gateway Cities.
- Virginia: Virginia Housing’s DPA Grant delivers 2-2.5% of the purchase price as a true gift, never repaid. DHCD’s deferred loan reaches $50,000 for buyers at or below 60% AMI.
- Florida: Florida Housing’s FL Assist provides $10,000 at 0% deferred for 30 years. Hometown Heroes reaches up to $35,000 for Florida workers. Orange County offers tiered assistance up to $70,000.
- Utah: UHC offers up to $27,500 in down payment assistance as a second mortgage, with or without monthly payments. The First-Time Homebuyer Assistance Program adds up to $20,000 for buyers of newly constructed homes.
Key takeaways
- CHFA’s DPA Grant provides up to the lesser of $25,000 or 3% of your loan, with no repayment required. The DPA Second Mortgage offers up to 4% but must be repaid when you sell or refinance.
- Both CHFA DPA options carry a rate premium — your mortgage interest rate will be higher than a market-rate loan in exchange for the down payment assistance.
- CHFA FirstGeneration provides a flat $25,000 deferred second mortgage for buyers whose parents or guardians never owned a home. There is no funding cap and no application period.
- CHFA Schools To Home launches in July 2026. It offers up to 25% of the first mortgage for qualifying public school employees, in exchange for a shared appreciation agreement with the Public School Permanent Fund.
- metroDPA provides a zero-interest 30-year deferred second mortgage equal to a percentage of the loan amount. The income limit is $210,150 for all family sizes, with no purchase price cap and no first-time buyer requirement.
- All CHFA DPA programs require a CHFA first mortgage, a $1,000 minimum borrower contribution, a 620+ credit score, and a completed homebuyer education course.
- metroDPA is available throughout most of Colorado’s Front Range — from Castle Rock to Wellington — not just within Denver.
Frequently asked questions
Can I use both CHFA and metroDPA assistance together?
Generally no. CHFA DPA requires pairing with a CHFA first mortgage, while MetroDPA requires its own first mortgage product. The two programs use separate mortgage structures and separate lender networks. You would choose one program or the other, not both simultaneously.
Do I need to be a first-time homebuyer to qualify for CHFA assistance?
For most CHFA programs, yes. CHFA defines a first-time homebuyer as someone who has not owned a home in the prior three years. There are exceptions for borrowers purchasing in targeted census tracts and for certain special programs. metroDPA has no first-time buyer requirement at all.
How does the CHFA rate premium affect my monthly payment?
The rate premium adds to your monthly mortgage payment compared to a market-rate loan. The actual increase depends on the rate differential at the time you lock.
Your lender can model the comparison: a standard market-rate loan with a larger down payment from your own savings versus a CHFA DPA loan with a higher rate and lower upfront cost. Run both scenarios before deciding.
What is the metroDPA “below 80% AMI” benefit?
Borrowers using a conventional loan with income below 80% of the area median income qualify for additional benefits within the metroDPA program. The specific benefit details are disclosed through participating lenders. The income thresholds for this tier vary by county; see the table above for each county’s 80% AMI limit.
Can I stack CHFA FirstGeneration with other down payment programs?
Yes, with conditions. CHFA allows pairing FirstGeneration with other eligible DPA sources as long as the additional assistance qualifies as a community second and sits in third lien position if applicable. All layers must meet CHFA underwriting guidelines. Confirm the specific combination with your lender before applying.
Is MetroDPA available outside the Denver metro area?
Yes. metroDPA is available in most of Colorado’s Front Range, from Castle Rock in Douglas County to Wellington in Larimer County. Eligible areas also include communities in Boulder, Broomfield, Jefferson, Arapahoe, Elbert, and Weld counties. The program page lists all eligible cities, towns, and unincorporated communities. Contact a metroDPA participating lender to confirm whether a specific address qualifies.
Compare mortgage lenders in Colorado
The right lender makes a significant difference in which programs you can access. Down payment assistance programs require working through an approved lender — not all lenders participate in CHFA or metroDPA. Compare CHFA-approved lenders side by side to find the best rates and terms for your situation.
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