Buying a home in Colorado can feel out of reach when you are trying to save for a down payment, closing costs, inspections, moving costs, and everything else that comes with getting into your first home.
The good news is that Colorado buyers may have more options than they think.
There are statewide programs, Denver metro programs, city and county programs, first-generation homebuyer options, options for buyers with a disability, lender-based assistance, grants, and second mortgage programs. Some do not need to be repaid. Others may be repaid only when you sell, refinance, or pay off the home.
The hard part is knowing which program actually fits your situation.
Let’s compare some of the best down payment assistance programs in Colorado, including CHFA, metroDPA, first-generation assistance, buyers with a disability assistance, county and city programs, lender options, grants, and second mortgage assistance.
If you want help checking your options, Colorado Down Payment Assistance Center can help you understand what you may qualify for and what steps to take next.
Check Your Colorado Down Payment Assistance Options
You may be able to get help with your down payment and closing costs through a Colorado home buyer program.
Depending on your situation, you may qualify for assistance such as:
- A grant that does not have to be repaid
- A zero-interest second mortgage
- A deferred second mortgage
- First-generation homebuyer assistance
- Buyers with a disability assistance
- Local city or county assistance
- Lender-based assistance
- Seller-paid closing costs alongside a DPA program
The right option depends on your income, credit score, location, loan type, purchase price, life situation, if you’re first-time homebuyer, or if you’re a first-generation homebuyer.
Want help figuring it out?
Call or text 303.459.4220 or complete the form to check your options.
Quick Comparison: Colorado Down Payment Assistance Programs
| Program Type | Best For | Assistance Type | Main Thing to Check |
|---|---|---|---|
| CHFA down payment assistance | Special programs for first-time buyers or non-first-time home buyers needing down payment assistance | Grant or second mortgage | Income, loan type, credit |
| CHFA FirstGeneration | Eligible first-generation buyers (one buyer’s parents have not owned a home in the past) | Up to $25,000 second mortgage assistance | First-generation status and CHFA eligibility |
| CHFA HomeAssist | Eligible buyers who have a disability or care for someone with a disability | Grant or second mortgage | Disability status and CHFA eligibility |
| metroDPA | Buyers with higher income (up to $215K) | Deferred second mortgage | Location, income, credit score |
| County and city programs | Buyers in specific places like Aurora, Boulder, Larimer County, Weld County, or other local areas | Varies by area | Funding availability and local rules |
| Grant options | Buyers who don’t want to pay back the down payment | No repayment | Higher mortgage rate |
| Second mortgage options | Buyers who want a lower monthly payment | Deferred or repayable loan | Down payment repaid when you refinance or sell your home |
What Is the Best Down Payment Assistance Program in Colorado?
There is no single best down payment assistance program for every Colorado buyer.
The best program is the one that helps you buy safely, keeps your monthly payment manageable, and does not create problems later if you sell, refinance, or need to move.
For one buyer, that might be a CHFA grant.
For another buyer, it might be a CHFA second mortgage because the assistance amount is higher.
For someone with higher income, metroDPA may be the better fit.
For a first-generation buyer, a first-generation program may offer more help than a standard first-time buyer program.
For a buyer with a disability, a HomeAssist program may offer more help than a standard first-time buyer program.
For someone buying in a specific city or county, a local program may be worth checking before choosing a statewide option.
That is why comparing programs matters. The biggest assistance amount is not always the best deal if it comes with a higher rate, tighter rules, or repayment terms that do not fit your plans.
1. CHFA Down Payment Assistance
CHFA, the Colorado Housing and Finance Authority, is one of the most important down payment assistance resources in Colorado.
CHFA programs are commonly used by Colorado home buyers looking for down payment assistance because they can combine a mortgage with down payment assistance. The assistance may help with the down payment, closing costs, or both.
CHFA usually offers two main types of down payment assistance:
CHFA Down Payment Assistance Grant
The CHFA grant can provide assistance that does not have to be repaid.
This can be a good fit for buyers who want to reduce their upfront cash without taking on a second mortgage. The tradeoff is that grant options may come with a higher interest rate or different mortgage pricing than other options.
CHFA 0% Second Mortgage Loan
The CHFA second mortgage option may offer more assistance than the grant.
This is typically structured as a second mortgage with no monthly payment and no interest. The balance is usually repaid when certain events happen, such as selling the home, refinancing, paying off the first mortgage, or no longer using the property as your primary residence.
Who CHFA May Be Best For
- You want the best rates and options for down payment assistance
- You need help with your down payment or closing costs
- You can qualify for a CHFA-approved mortgage
- You meet income, credit, and loan requirements
- You want to compare a grant against a second mortgage option
- Your income is average for your location
What to Watch With CHFA
- Grant vs second mortgage
- Interest rate differences
- Monthly payment
- Cash needed to close
- Loan type
- Purchase price
- Income limits
- Credit score requirements
- Whether you plan to refinance or sell soon
A CHFA grant may sound better because it does not need to be repaid. But in some cases, the second mortgage may offer more help upfront and a lower monthly payment.
The right answer depends on the numbers.
Learn more about CHFA Down Payment Assistance Colorado
2. First-Generation Homebuyer Assistance
First-generation homebuyer programs are designed for buyers whose parents have not owned a home.
These programs can provide additional assistance on top of standard first-time homebuyer programs.
In Colorado, this is often offered through CHFA or other programs that layer additional support.
Who First-Generation Programs May Be Best For
- You are a first-generation homebuyer
- You qualify under program definitions
- You want additional assistance beyond standard programs
What to Watch With First-Generation Programs
- Eligibility definitions can be strict
- Documentation requirements
- Availability of funding
3. Down Payment Assistance for Buyers With a Disability
Some Colorado programs provide additional help for buyers who have a disability or who care for someone with a disability.
Programs like CHFA HomeAssist may offer grants or second mortgage assistance.
Who Disability Assistance Programs May Be Best For
- You have a qualifying disability
- You care for someone with a qualifying disability
- You meet income and credit requirements
What to Watch With Disability Assistance Programs
- Documentation requirements
- Program-specific eligibility rules
- How assistance is structured
4. metroDPA Down Payment Assistance
metroDPA is another major Colorado down payment assistance option, especially for buyers in participating Front Range communities who have higher income.
Although the program is connected with Denver, buyers do not need to buy directly in Denver. The key is whether the home is in an eligible participating area. Most of the Front Range allows for metroDPA lending.
metroDPA can provide a percentage of the first mortgage amount as down payment and closing cost assistance. The assistance is commonly structured as a deferred second mortgage, with no monthly payments and no interest.
Who metroDPA May Be Best For
- You are buying in an eligible Front Range area
- Your income fits the program limits - generally under $215K/year
- Your credit score meets the program rules
- You want help with both down payment and closing costs
- You want a deferred second mortgage rather than a monthly repayment loan
What to Watch With metroDPA
- Whether your loan type qualifies
- Whether you meet credit rules
- Whether your income is under the limit
- When the second mortgage becomes due
- Whether the rate still makes sense compared with other options
metroDPA can be a strong option, but it should be compared against CHFA and any local programs available where you are buying.
Learn more about metroDPA Down Payment Assistance
5. City and County Down Payment Assistance Programs
Many cities and counties in Colorado offer their own down payment assistance programs.
These programs may be available in places like Aurora, Boulder, Larimer County, Weld County, and others.
Local programs can sometimes offer better terms than statewide options, but they are often limited by funding and specific location rules.
Who Local Programs May Be Best For
- You are buying in a participating city or county
- You meet local income and purchase price limits
- You are able to meet program-specific requirements
What to Watch With Local Programs
- Funding availability (can run out quickly)
- Stricter rules
- Geographic limitations
6. Grants vs Second Mortgages: What’s Better?
One of the biggest decisions when choosing a down payment assistance program is whether to use a grant or a second mortgage.
Grants
- Do not need to be repaid
- May come with a higher interest rate
Second Mortgages
- Often provide more assistance upfront
- Usually repaid when you sell, refinance, or pay off the home
- May allow for a lower interest rate on the first mortgage
The right choice depends on your financial goals, how long you plan to stay in the home, and how the numbers compare.
How to Choose the Right Down Payment Assistance Program
Choosing the right program comes down to comparing the full picture, not just the assistance amount.
- Total monthly payment
- Cash needed to close
- Interest rate
- Repayment terms
- Your long-term plans
The best program is the one that helps you buy safely and fits your situation both now and in the future.
Get Help Comparing Your Options
If you want help comparing Colorado down payment assistance programs, you can get guidance based on your specific situation.
Call or text 303.459.4220 or complete the form to check your options.
Understanding your options can make a big difference in how much you need upfront and how your loan works over time.