Get help with your down payment and closing costs in Colorado
Buying a home in Colorado often comes down to one thing: cash-to-close. If you have the income to support a mortgage payment but you're short on upfront funds, down payment assistance (DPA) can help cover down payment and often closing costs.
At Colorado Down Payment Assistance Center, we help buyers access $3,600 to $25,000 in Colorado down payment assistance programs and guide you through the entire process from where you are now (renter) to closing on your new home (homeowner). We offer a turnkey solution that helps you through the entire home-buying process with absolutely no cost to you!
Start here: submit the quick eligibility form, and we'll tell you which options fit your situation.
We help buyers across the Front Range, including Fort Collins, Loveland, Greeley, Windsor, Wellington, Longmont, Thornton, Northglenn, Westminster, Wheatridge, Littleton, Broomfield, Arvada, Brighton, Boulder, Erie, Louisville, Denver, Highlands Ranch, Aurora, and surrounding communities all the way down to Colorado Springs.
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
Down payment assistance typically comes in a few formats, and the one you choose affects the cash needed today and your costs later. Common types include:
- Grants: money that does not need to be repaid.
- 0% second mortgages: repaid when you sell or refinance. This is the most popular option as it creates the lowest monthly mortgage payment.
- Forgivable loans: forgiven after you meet a time requirement (often a few years).
Some programs also require:
- buying a primary residence
- staying under an income limit
- meeting a minimum credit score
- completing a homebuyer education course
- be a first-time home buyer, but there are still programs that don't require you to be a first-time home buyer
Is down payment assistance worth it?
For many home buyers in Northern Colorado, down payment assistance is what makes buying possible sooner rather than waiting years to save.
Why it can make sense:
- You can buy sooner instead of delaying while trying to save for a down payment..
- It reduces the cash needed at closing.
- It allows you to keep more savings in reserve.
Things to understand before choosing it:
- Most programs have income and purchase price limits.
- You may need to complete a homebuyer education course.
- Some options are structured as a second mortgage that is repaid if you sell or refinance.
- Some assistance structures may come with a different interest rate than a standard loan without assistance.
The right choice depends on your goals. If your priority is lowering cash-to-close, assistance can be powerful. If flexibility or rate structure matters more, we compare those options side by side before you decide. Bottom line is we look at ALL lending and down payment assistance options to determine which best fits your financial situation.
Down payment assistance options we help Colorado buyers use
Quick Comparison of Common Assistance Structures
| Option | How It Works | Repayment | Best For |
|---|---|---|---|
| 4% Second Mortgage | Up to 4% of the first mortgage amount, structured as a 0% interest second mortgage | Repaid when you sell, refinance, or no longer occupy the home | Buyers who want lower cash to close without a second monthly payment and who wants the lowest monthly mortgage payment |
| 3% Grant | Assistance structured as a grant | Typically, no repayment required (subject to program terms) | Buyers who prefer not to have a second mortgage and don't mind a bit higher monthly mortgage. |
| First-Generation Assistance | Enhanced assistance for qualifying first-generation buyers (up to $25,000, depending on program) | Repaid when you sell, refinance, or no longer occupy the home | Buyers who meet income requirements and meet first-generation criteria (parents of one buyer have not owned a home or one buyer has been in foster care system). |
Option 1: 4% down payment assistance (0% interest second mortgage)
This option is structured as a second mortgage that can be used for your down payment and closing costs. On our site, this is described as a 4% zero interest loan where repayment is typically due when you sell or refinance. This is most popular option.
Best for: buyers who want to minimize cash to close and avoid a second monthly payment.
Option 2: 3% down payment grant
This is a grant-style option that reduces upfront cost and is described on our site as a 3% grant.
Best for: buyers who do not want a second mortgage and don't mind a bit higher monthly mortgage payment.
Option 3: First-generation down payment assistance
The first-generation option that can provide up to $25,000.
Best for: buyer who has not owned a home before and whose parents have never owned a home (or has been in the foster system) - only one of the buyers needs to qualify!
Official and widely used Colorado programs to know about (we'll help match you to the best option)
CHFA (Colorado Housing and Finance Authority) assistance
- grant option up to the lesser of $25,000 or 3% of the first mortgage
- second mortgage option up to the lesser of $25,000 or 4% of the first mortgage amount, typically repaid when you refinance, sell, or stop occupying the home.
- first-generation option that gives a full $25,000 to be used for the down payment and/or closing costs.
MetroDPA (Front Range)
metroDPA is a commonly used Front Range assistance option. It is very similar to CHFA but has higher income limits and is restricted to certain locations.
CHAC (Colorado Housing Assistance Corporation)
CHAC is a well-known nonprofit lender that offers down payment assistance options for buyers with lower credit scores, higher debt-to-income ratios, and non-traditional income situations.
Who typically qualifies for down payment assistance in Colorado?
- Income limits (varies by county and household size)
- Minimum credit score (many programs require 620+)
- Primary residence requirement
- Homebuyer education (often required)
What if you have little or no money for a down payment?
Down payment assistance is not the only path.
Depending on your situation, you may also qualify for:
VA loans - Eligible veterans, active service members, and some surviving spouses may qualify for 0% down financing.
USDA loans - In certain rural and suburban areas of Colorado, eligible buyers may qualify for 0% down financing with income limits.
Low-down-payment FHA loans - FHA loans allow down payments as low as 3.5%, which can sometimes be combined with assistance programs.
Even with 0% down options, buyers should still plan for closing costs (usually we can get the seller to pay for these), inspections, and possibly reserves.
How much money do you need to buy a home in Colorado with assistance?
- Closing costs are often around 2% of the purchase price, depending on taxes, lender fees, and insurance. However, in the current market, we are usually able to get the seller to pay for these.
- Seller concessions can sometimes help reduce cash to close.
- Many buyers may need around $1,500 to move in (example amounts vary by transaction).
Don't worry, we'll walk you through the realistic "cash to close" number based on your price range, loan type, and the DPA structure.
Our process (simple and fast)
- Quick eligibility check
- Get pre-approved with our lender (or your lender) and apply for the down payment assistance
- Together we find your home
- Close and move in
Most transactions close in 30 days once you're under contract, depending on inspections, appraisal, and underwriting.
Areas we help
- Fort Collins
- Loveland
- Greeley
- Windsor
- Wellington
- Longmont
- Thornton
- Northglenn
- Westminster
- Wheatridge
- Littleton
- Broomfield
- Arvada
- Brighton
- Boulder
- Erie
- Louisville
- Denver
- Highlands Ranch
- Aurora
- And surrounding communities all the way down to Colorado Springs
If you're elsewhere in Colorado, still reach out. Many programs are statewide, and others depend on the city or county.
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.
Ready to see what you qualify for?
- Submit the eligibility form at the top of this page OR
- Call/text 303.459.4220
We'll help you match the right programs to your goals and current financial situation.