Home Loans
Down Payment Assistance
The down payment is the biggest barrier keeping most renters from becoming homeowners. Down payment assistance programs exist to close that gap. Grants, forgivable loans, and second liens are available in Colorado that can cover part or all of your down payment and closing costs — and most buyers have no idea they qualify.
Up to $25k
In Available Assistance
Grants
Never Repaid
Stacks
With Other Programs
What Is Down Payment Assistance?
Down payment assistance programs are funded by state agencies, local governments, and nonprofit organizations to help buyers cover the upfront costs of purchasing a home. They come in several forms including outright grants that never need to be repaid, forgivable second loans that are wiped out after a set period of occupancy, and deferred second loans that are only repaid when you sell or refinance.
In Colorado, the most widely used program is through CHFA, the Colorado Housing and Finance Authority. CHFA partners with approved lenders to offer down payment assistance that can be paired with FHA, conventional, VA, and USDA loans. The result is a purchase where a significant portion of your upfront costs are covered, sometimes bringing your out-of-pocket expense close to zero on the day you close.
Ready to Get Started?
Let's Find Out What You Qualify For
No pressure, no runaround. Todd and Aaron will check your eligibility and show you every program available in your area.
Key Benefits
Grants That Never Require Repayment
Some DPA programs are outright grants. You receive the funds at closing and there is nothing to pay back. Ever.
Stacks with FHA, VA, USDA and Conventional
DPA programs pair with most standard loan types. You are not limited to one narrow financing path to access the assistance.
Not Just for First-Time Buyers
Many DPA programs define first-time buyer broadly or have no first-time buyer requirement at all. You may qualify even if you have owned before.
Covers Closing Costs Too
Many programs cover closing costs in addition to the down payment, which can dramatically reduce what you need to bring to closing day.
Who Qualifies?
Eligibility varies by program but most DPA programs in Colorado look at a combination of income, credit, and the property being purchased. CHFA programs are available statewide and serve a broad range of buyers, not just first-timers or very low income households.
General requirements for most Colorado DPA programs include:
- Credit score of 620 or higher depending on the loan type paired with the assistance
- Income at or below program limits, which vary by county and household size
- The home must be your primary residence
- Completion of an approved homebuyer education course in most cases
- The property must meet the purchase price limits for the program
- You must use an approved lender to access the assistance
Todd and Aaron are CHFA-approved lenders. They will check your eligibility across multiple programs and find the combination that puts the most money in your pocket on closing day.
Good to Know
Some DPA programs come with a slightly higher interest rate on the first mortgage to offset the cost of the assistance. Todd and Aaron will show you the full picture so you can weigh the tradeoff and decide whether the assistance makes financial sense for your situation.
In most cases the math strongly favors taking the assistance.
Colorado CHFA
Statewide.
Available Now.
CHFA programs are available across the entire state of Colorado and are actively funded. Todd and Aaron are approved CHFA lenders and can access these programs directly for you.
How the Process Works
Check Your Eligibility
Todd and Aaron review your income, credit, and purchase plans against the eligibility requirements for available DPA programs in your county. This step takes minutes and tells you right away what you can access.
Complete the Required Education Course
Most DPA programs require completion of an approved homebuyer education course before closing. These are typically done online and take a few hours. Todd and Aaron will point you to the right resource.
Get Pre-Approved with DPA Built In
Your pre-approval includes both the primary mortgage and the assistance layer so you know your full purchasing power and exactly what you will need to bring to closing.
Find Your Home and Go Under Contract
Shop within your approved range. The DPA funds are reserved for you once you are pre-approved and will be applied at closing alongside your first mortgage.
Close with Less Out of Pocket
At closing, the DPA funds are applied automatically. You bring significantly less cash to the table, or in some cases nothing at all beyond any required earnest money.
Typical Timeline
30-45
Days to Close
DPA loans close on a similar timeline to standard purchases. The extra layer of approval for the assistance program adds minimal time when you are working with an experienced CHFA lender who knows the process.
Worth Knowing
Programs Fund Out Fast.
Some DPA programs operate on limited funding pools that can be depleted during high-demand periods. If you think you qualify, the best time to check is now before funds run low.
Common Questions
Do I have to be a first-time buyer to qualify for down payment assistance?
Not always. CHFA defines first-time buyer as someone who has not owned a primary residence in the past three years, which means many people qualify even if they have owned before. Some programs also have no first-time buyer requirement at all. Todd and Aaron will check your situation against every available program rather than making assumptions about eligibility.
Is down payment assistance a loan I have to repay?
It depends on the program. Some DPA comes as an outright grant with no repayment required. Others are structured as a second lien that is forgiven after you occupy the home for a certain number of years. And some are deferred loans that are only repaid when you sell, refinance, or pay off the first mortgage. Todd and Aaron will explain exactly how the assistance you qualify for is structured before you commit.
Does using down payment assistance affect my interest rate?
Some programs do carry a slightly higher rate on the first mortgage to offset the cost of the assistance. The tradeoff is usually worth it, but it is important to see the full picture. Todd and Aaron will show you a side-by-side comparison of your payment with and without the DPA so you can make an informed decision.
How much assistance can I actually receive?
The amount varies by program and is typically calculated as a percentage of the loan amount or capped at a specific dollar figure. CHFA programs generally offer assistance ranging from 3% to 4% of the loan amount, which can mean several thousand dollars applied directly to your down payment and closing costs. Some local programs stack on top of state programs for even more assistance.
Can I combine down payment assistance with a VA loan?
Yes, in some cases. VA loans already require no down payment, but DPA can sometimes be used to cover closing costs when paired with a VA loan. The specific combination depends on the program guidelines. Todd and Aaron will check what is available and whether stacking makes sense for your situation.
Still Have Questions?
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Call Todd: (719) 482-5359 Call Aaron: (404) 455-5710