Colorado Down Payment Assistance Grants Explained

Colorado home buyers who need help with a down payment have several real options, led by the Colorado Housing and Finance Authority, known as CHFA, plus city-level programs like Denver's down payment assistance and the multi-city metroDPA program. Most combine a first mortgage with a second loan or grant that covers part or all of the down payment and some closing costs.

What down payment assistance is available to Colorado home buyers?

Three programs cover most of the Front Range: CHFA's statewide down payment assistance, Denver's city-run program for buyers purchasing inside Denver city limits, and metroDPA, which several Front Range cities and counties participate in through a network of approved lenders. Each pairs with a first mortgage and has its own income, purchase price and credit requirements.

What is CHFA and how does its down payment assistance work?

CHFA is the Colorado Housing and Finance Authority, a state agency that offers down payment assistance as a second loan alongside a CHFA first mortgage. Depending on the specific CHFA program, that assistance comes as a low-interest second mortgage or, in some CHFA programs, as a grant that does not require repayment as long as you meet the program's terms.

What is Denver's down payment assistance program?

The City and County of Denver runs its own down payment assistance program for buyers purchasing a home inside Denver's city limits, administered through the city's economic development office. It is structured as a loan with favorable terms rather than a mortgage add-on, and it is separate from CHFA's statewide programs, so a Denver buyer can check eligibility for both.

What is metroDPA and which Front Range cities offer it?

metroDPA is a down payment assistance program offered through a network of participating cities and counties along the Front Range, delivered through approved lenders rather than directly through a city office. Availability depends on which cities are currently participating, so ask your lender which programs apply to the specific address you are buying.

Do down payment assistance grants have to be repaid?

It depends on the specific program. Some CHFA and city programs structure assistance as a second loan that is repaid over time or when you sell or refinance, while others structure it as a grant or forgivable loan that does not require repayment once you meet the program's occupancy and time requirements. Read the program terms for the specific product your lender offers before you count on any assistance as free money.

What are the income and price limits on Colorado down payment assistance?

CHFA, Denver and metroDPA all set maximum household income and maximum purchase price limits that vary by county and household size, and those limits change periodically. Your lender checks current limits against your income and the home's price as part of the application, so ask early rather than assuming you do or do not qualify.

Do you have to be a first-time buyer to qualify?

Some Colorado down payment assistance programs are open to repeat buyers, not only first-time buyers, though certain product tiers within CHFA are reserved for buyers who have not owned a home in the past three years. Ask your lender which specific product fits your buying history.

Is a homebuyer education course required?

CHFA and most city-run down payment assistance programs require an approved homebuyer education course before closing, commonly completed online or in a single in-person session. Your lender or a HUD-approved counseling agency can point you to an approved course.

How do down payment assistance programs affect your mortgage rate?

Programs that pair a grant with a first mortgage sometimes carry a slightly higher interest rate on that first mortgage than a standard loan without assistance, since the rate helps fund the grant. Ask your lender to show you the rate and payment with and without the assistance program so you can compare the real cost over time.

What closing costs does down payment assistance cover?

Depending on the program and the amount you qualify for, down payment assistance can cover part of your down payment, part of your closing costs, or both. It rarely covers 100% of both on its own, so most buyers still bring some funds to closing even with assistance.

How do you apply for Colorado down payment assistance?

You apply through a participating lender at the same time you apply for your mortgage, not through a separate city or state office. The Kenna Credit Care mortgage readiness program is a free place to start if you want to know where your credit and savings stand before you talk to a lender about which assistance program fits.

What documents does a lender need for a down payment assistance application?

Expect to provide the same documents as a standard mortgage application: pay stubs, tax returns, bank statements and identification, plus proof of homebuyer education completion. Your lender pulls the specific program's income and price limits and tells you which ones you meet.

Does Colorado down payment assistance apply to condos and townhomes?

Yes, CHFA, Denver's program and metroDPA all apply to condos and townhomes as long as the property and the buyer meet the program's price, income and occupancy rules. A condo or townhome governed by an HOA under the Colorado Common Interest Ownership Act does not lose eligibility for assistance just because it carries association dues, though the lender factors those dues into your qualifying payment.

Does the inspection objection deadline change when you use down payment assistance?

No, the inspection objection deadline in Colorado's standard contract to buy and sell works the same way whether or not you are using down payment assistance. Your financing contingency and any program-specific requirements, like a required inspection for an older home, run on their own timelines alongside the standard inspection objection deadline, so ask your lender and agent to map both out at the start of the contract.

What happens if you sell or refinance before a forgivable second loan is paid off?

Many down payment assistance second loans forgive part or all of the balance only after you live in the home for a set number of years, and selling or refinancing before that period ends can trigger repayment of the remaining balance. Ask your lender for the exact forgiveness schedule in writing before closing so you know how a future move or refinance would affect what you owe.

Where to go next

• First-time buyer guide
• Getting mortgage pre-approval
• Financing options for Colorado buyers
• Kenna Credit Care mortgage readiness
• First-time homebuyer programs in Denver: grants, loans and assistance
• Colorado homebuyers benefit from expanded CHFA down payment assistance

Talk to the Kenna Real Estate Group

The Kenna Real Estate Group works with buyers across the Front Range to line up a lender who can match you with the right down payment assistance program for the home and neighborhood you want, including Mike Oswald at Rate, NMLS 261003, Equal Housing Lender; you are free to use any lender. Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. Or search every home for sale in Colorado to see what fits your budget with assistance factored in.