Down Payment Assistance in Colorado: Grants, CHFA, metroDPA and First-Time Buyer Help

Get help with your down payment and closing costs in Colorado

Buying a home in Colorado often comes down to one question: how much cash do you need to get to closing?

If you have the income to support a mortgage payment but are short on upfront funds, down payment assistance may help with your down payment, closing costs, or prepaid expenses. Some Colorado programs are grants that do not need to be repaid. Others are second mortgages that are repaid later when you sell, refinance, pay off the first mortgage, or stop living in the home as your primary residence.

The right option depends on where you are buying, your income, credit score, loan type, household size, available savings, and whether you qualify as a first-time or first-generation buyer.

At Colorado Down Payment Assistance Center, we help buyers compare options such as CHFA, metroDPA, local assistance programs, seller concessions, and low-down-payment loans. The goal is not just to find the biggest assistance amount. The goal is to understand how much cash you may need, what your monthly payment could look like, and what the repayment terms mean before you make an offer.

Reviewed by Adam Macy: Colorado real estate professional helping buyers compare down payment assistance, seller concessions, and low-down-payment homebuying options.

Last updated: July 2026

Colorado Down Payment Assistance Center is not a government agency, CHFA, or metroDPA. We help buyers understand available options and move through the homebuying process with the right lender and real estate guidance.

If you want help comparing your options, Colorado Down Payment Assistance Center can help you check eligibility and understand which path may fit your situation.

Down payment assistance programs in Colorado

Colorado offers statewide and local down payment assistance programs through housing authorities, nonprofit partners, and lender-participating programs. Below, we explain how these programs work, who qualifies, and how to determine which option fits your situation.

How down payment assistance works in Colorado

Colorado down payment assistance programs usually help with one of the hardest parts of buying a home: the cash needed upfront.

That help can come in different forms. A grant may reduce your upfront cost without requiring repayment. A second mortgage may provide more help now, but require repayment later. Some local programs may use deferred loans, forgivable loans, or other structures depending on funding and local rules.

The type of assistance matters because it affects both your purchase today and your options later.

A buyer using a grant may have simpler repayment terms. A buyer using a second mortgage may get more help upfront but may need to repay that balance when selling, refinancing, paying off the first mortgage, or moving out of the home.

Most programs also have eligibility rules. These can include income limits, credit score requirements, primary residence rules, homebuyer education, purchase location, loan type, and whether you are a first-time homebuyer. Some programs are statewide. Others depend on the city, county, lender, or local housing partner.

That is why the best first step is always comparing the options based on your real numbers.

Which Colorado down payment assistance option should you compare first?

Different buyers need different programs. The best option for someone buying in Denver may not be the best option for someone buying in Greeley, Fort Collins, Grand Junction, Aurora, or Colorado Springs.

This is why we compare more than one path. The best program is not always the one with the highest assistance amount. It is the one that gives you a realistic path to closing with a payment and repayment structure you understand.

Is down payment assistance worth it?

Down payment assistance can be worth it when it helps you buy safely without draining your savings.

For many Colorado buyers, the monthly mortgage payment is not the only problem. The harder part is getting enough money together for the down payment, closing costs, inspection, appraisal, moving expenses, and reserves. Assistance can reduce that upfront barrier.

But it is still important to understand the trade-off.

Some assistance is a grant and does not need to be repaid. Some assistance is a second mortgage that may not have a monthly payment but does need to be repaid later. Some assistance options may also come with a higher interest rate than a loan where the buyer brings their own down payment.

That does not make down payment assistance a bad deal. It means the decision should be based on the full picture: cash needed upfront, monthly payment, interest rate, repayment terms, how long you expect to stay in the home, and whether seller concessions can also help reduce closing costs.

The right answer depends on your goals. If your priority is lowering cash-to-close, assistance can be powerful. If you are focused on the lowest possible monthly payment or maximum flexibility later, you should compare the options carefully before choosing.

Major Colorado down payment assistance programs

Colorado buyers may have access to statewide programs, Front Range programs, local assistance, nonprofit options, and low-down-payment loan structures. The right fit depends on the buyer and the property.

CHFA down payment assistance

CHFA, the Colorado Housing and Finance Authority, is one of the main statewide options Colorado buyers ask about.

CHFA assistance is used with a CHFA first mortgage through a participating lender. CHFA does not directly qualify buyers. The lender reviews your file, checks the program rules, and explains which options may fit.

CHFA commonly includes two main down payment assistance structures.

The CHFA grant may provide up to the lesser of $25,000 or 3% of the first mortgage amount. The grant does not need to be repaid, subject to program terms.

The CHFA second mortgage may provide up to the lesser of $25,000 or 4% of the first mortgage amount. It is usually structured as a deferred second mortgage, meaning there may not be a second monthly payment, but the balance is repaid later when a trigger event happens.

Common repayment triggers include selling the home, refinancing, paying off the first mortgage, or no longer using the property as your primary residence.

CHFA also has a FirstGeneration option that may provide up to $25,000 for qualifying buyers. This can be especially important for buyers whose parents have not owned a home or who meet other first-generation criteria.

Buyers should also understand CHFA’s minimum financial contribution requirement. CHFA generally requires at least $1,000 from the borrower toward the purchase. That does not always mean a separate $1,000 check at closing. Depending on the loan and documentation, costs such as earnest money, inspection, appraisal, or eligible gift funds may help satisfy the requirement.

metroDPA down payment assistance

metroDPA is another major option for buyers in Denver and across Colorado’s Front Range.

One reason metroDPA matters is that it is not only for first-time buyers. Repeat buyers may also be eligible. metroDPA can help with down payment, closing costs, prepaids, or principal reduction, and the assistance is structured as a 0% second mortgage with no scheduled monthly payments.

metroDPA can be especially worth comparing if you are buying in the Denver metro area or elsewhere in the Front Range, if your income is above certain CHFA limits, or if you are not technically a first-time buyer.

Like other programs, metroDPA still has rules. Buyers must meet credit, income, property, occupancy, lender, and homebuyer education requirements.

In simple terms, CHFA is often the first statewide option to compare, especially for first-time buyers. metroDPA may be worth comparing if you are buying in the Front Range, are not a first-time buyer, or may fit better under metroDPA’s income and location rules. The right answer depends on the lender, property location, income, credit score, and full monthly payment.

CHAC and local nonprofit options

CHAC, the Colorado Housing Assistance Corporation, and other nonprofit or local housing partners may also be relevant for some buyers.

These options can matter when a buyer does not fit neatly into CHFA or metroDPA, has a more complex file, is buying in a specific city or county, or needs to compare local funding sources.

Some Colorado assistance is not offered directly to individual buyers through a simple public application. In some cases, state or local funding flows through local governments, housing authorities, nonprofit partners, and approved agencies.

This is why location matters. A buyer in Denver, Greeley, Fort Collins, Aurora, Grand Junction, Boulder, or Colorado Springs may not be comparing the exact same set of options.

Who typically qualifies for down payment assistance in Colorado?

Eligibility depends on the program, lender, loan type, home location, household size, income, credit score, and property.

Most buyers should expect the lender or program to review whether the home will be used as a primary residence, whether the buyer meets income limits, whether the buyer has enough qualifying credit, and whether homebuyer education is required.

Some programs are limited to first-time buyers. Others also allow repeat buyers. Some programs have local boundaries, while others are available statewide or across the Front Range.

Credit score rules also vary. Many programs use 620 as a common threshold, but that does not mean every buyer with a 620 score automatically qualifies or every buyer below 620 has no options. Debt-to-income ratio, income stability, loan type, and lender guidelines all matter.

The safest approach is to check eligibility before you start making offers, especially if you are relying on down payment assistance or seller concessions to make the numbers work.

What if you have little or no money for a down payment?

Down payment assistance is not the only path to buying with less money upfront.

Some buyers may also compare VA loans, USDA loans, FHA loans, conventional low-down-payment loans, seller concessions, gift funds, or lender credits.

VA loans may allow eligible veterans, active service members, and some surviving spouses to buy with no down payment. USDA loans may allow eligible buyers to buy with no down payment in certain rural and suburban areas. FHA loans may allow a down payment as low as 3.5%, and some buyers may be able to combine FHA financing with approved assistance programs.

Even when a loan allows a low or no down payment, buyers should still plan for other costs. Closing costs, earnest money, inspection, appraisal, moving expenses, and reserves can still matter.

The goal is not just to get the lowest possible cash-to-close number. The goal is to buy with a payment you can afford and enough money left over to feel stable after closing.

How much money do you need to buy a home in Colorado with assistance?

The amount depends on the home price, loan type, assistance program, lender fees, taxes, insurance, seller concessions, and how the contract is written.

Down payment assistance may reduce the money needed for the down payment and sometimes closing costs. Seller concessions may also help reduce closing costs if the seller agrees and the loan type allows it.

But buyers should still plan for costs that can come before closing, such as earnest money, inspection, and appraisal. These costs are easy to overlook because they may be due before the final cash-to-close number is confirmed.

Some buyers may be able to buy with a much lower cash-to-close number than they expected. Others may need more depending on the property, market, program, and lender.

The best number to ask for is “How much money will I need from now through closing, and how much should I keep available after I move in?”

How the process works

The first step is a quick eligibility review. This helps narrow down whether CHFA, metroDPA, local assistance, seller concessions, or another low-down-payment path may fit.

From there, the lender reviews your credit, income, debts, savings, and loan options. If down payment assistance is realistic, the lender can show how much help may be available, what your estimated monthly payment could look like, and how much cash may be needed before and at closing.

Once the numbers are clear, the home search becomes more focused. Your real estate agent can help write offers that fit your financing, including seller concessions if they are part of the plan.

After you go under contract, the inspection, appraisal, underwriting, assistance approval, and closing steps all need to stay coordinated. Many transactions can close in about 30 days once under contract, but timing depends on the property, inspection, appraisal, lender, program, and contract.

Down payment assistance by Colorado area

Some Colorado down payment assistance programs are statewide. Others depend on the city, county, housing authority, lender, or nonprofit partner.

We help buyers compare options across Northern Colorado, the Denver metro area, Boulder County, and other Front Range communities.

In Northern Colorado, this may include Fort Collins, Loveland, Greeley, Windsor, Wellington, and nearby areas.

In the Denver metro area, this may include Denver, Aurora, Arvada, Thornton, Northglenn, Westminster, Wheat Ridge, Littleton, Broomfield, Brighton, Highlands Ranch, and surrounding communities.

In Boulder County and nearby areas, this may include Boulder, Longmont, Erie, Louisville, and nearby towns.

We can also help buyers looking in other Colorado communities, including Colorado Springs and Grand Junction, understand whether statewide programs, metroDPA, CHFA, or local assistance may be available.

If you are not sure whether your city or county has a program, it is still worth checking. Location can change which options are available.

Common questions buyers ask before using down payment assistance

Many buyers start with the same concern: is this free money, or do I have to pay it back?

The answer depends on the program. Grants usually do not need to be repaid. Second mortgages are often repaid later when you sell, refinance, pay off the first mortgage, or stop living in the home.

Seller concessions may also help reduce closing costs, but they are different from down payment assistance. A seller concession has to be negotiated into the contract and must be allowed by the loan type.

Many buyers also ask whether they need 20% down. The answer is no. Many first-time buyers use low-down-payment loans, CHFA, metroDPA, seller concessions, or other options instead.

Colorado Down Payment Assistance FAQs

How much down payment assistance can I get in Colorado?

Many Colorado programs are structured as a percentage of the mortgage amount or as a capped dollar amount. Our site references $3,600 to $25,000 as the typical range we help buyers pursue.

Is down payment assistance "free money"?

Sometimes. A grant does not require repayment, while many programs are structured as a second mortgage that is repaid when you sell or refinance.

Will I have a second monthly payment?

Not always. Many deferred second mortgages have no monthly payment, but they are repaid when you sell or refinance.

Do I need to be a first-time home buyer?

Often, yes, but "first-time" commonly means you have not owned a home in the last 3 years.

What credit score do I need?

It depends on the program and loan type. Many programs reference 620+ as a common threshold.

Can down payment assistance be used for closing costs too?

Often yes. Many programs allow funds for down payment and closing costs.

How do I find every program I might qualify for?

Databases like Down Payment Resource are commonly used to discover programs by location, household size, and income.

Is metroDPA only for Denver?

No. metroDPA is commonly associated with Denver, but it can apply across participating Front Range areas. Eligibility depends on location, income, credit, property, lender, and program rules.

Official program references

• CHFA Down Payment Assistance
• CHFA How to Get a CHFA Program Loan
• metroDPA official site
• Colorado DOLA Down Payment Assistance
• Down Payment Resource

Ready to compare your Colorado down payment assistance options?

If you are trying to buy a home in Colorado and want help with the down payment, closing costs, or cash-to-close number, start with a quick eligibility check.

We can help you compare CHFA, metroDPA, local assistance options, seller concessions, and low-down-payment loan paths.

The goal is to help you understand:

• how much assistance may be available
• how much cash you may need before and at closing
• what your monthly payment could look like
• whether the assistance is a grant or repayable second mortgage
• which path may fit your situation.

We'll help you match the right programs to your goals and current financial situation.

• Submit the eligibility form at the top of this page OR
• Call/text 303.459.4220