Colorado Down Payment Assistance Programs
With the rising home prices, buying a home in Colorado can feel out of reach when you are trying to save for a down payment and closing costs at the same time.
The GOOD NEWS: there are programs designed to help.
Below are the benefits and most common categories of assistance you will see across Colorado
The Benefits of Down Payment Assistance
Lower Upfront Costs
Down Payment Assistance programs help reduce the amount of cash needed upfront when buying a home. At Forge Home Lending, we guide buyers through available programs that can cover part or all of the down payment, making homeownership more accessible without draining your savings.
Easier Path to Ownership
With Down Payment Assistance, qualifying buyers can purchase a home sooner instead of waiting years to save. Forge Home Lending helps you navigate grants, forgivable loans, and assistance options designed to remove common barriers to buying.
More Buying Power
Reducing your upfront costs can free up funds for closing expenses, moving costs, or home improvements. Through Forge Home Lending, Down Payment Assistance allows you to focus on finding the right home while keeping your finances balanced and secure.
Statewide Programs
CHFA (Colorado Housing and Finanece Authority) offers down payment and/or closing cost assistance for buyers using the CHFA first mortgage program. Assistance is commonly available as a grant (no repayment) or a deferred second mortgage loan.
CHFA Down Payment Assistance Grant (Statewide Colorado)
CHFA offers a Down Payment Assistance Grant that can help eligible Colorado homebuyers with down payment and/or closing costs, when using a CHFA first mortgage. The grant is based on a percentage of your first mortgage loan amount (program limits apply) and does not require repayment.
This can be a strong option if you want help upfront and prefer not to carry a second loan – and we’ll review the tradeoffs, since pricing/interest rate can vary when assistance is used.
* Facts source: CHFA describes the DPA Grant as put to 3% of the first mortgage loan amount with no repayment (limits apply) https://www.chfainfo.com/homeownership/faqs?utm_source=chatgpt.com
CHFA Down Payment Assistance Second Mortgage (Statewide Colorado)
CHFA also offers a Down Payment Assistance Second Mortgage that can help cover down payment and/or closing costs when paired with a CHFA first mortgage. This option is typically a deferred second mortgage, meaning there are generally no monthly payments, and repayment is due when you sell, refinance, pay off the first mortgage, or stop living in the home as your primary residence (program rules apply).
This can be a good fit for buyers who want to reduce upfront cash but are comfortable with a second lien that ay be repaid later.
*Fact Source: CHFA describes the DPA Second Mortgage Loan as up to 4% of the first mortgage loan amount with deferred repayment triggers. https://www.chfainfo.com/homeownership/faqs?utm_source=chatgpt.com
CHFA FirstGeneration (Up to $25,000 in Assistance)
CHFA FirstGeneration is designed to support eligible first-generation homebuyers in Colorado (including certain borrowers raised in the foster care system) CHFA states this program can provide up to $25,000 in down payment assistance along with a fixed-rate 30-year first mortgage for eligible borrowers.
If you think you may qualify, we’ll help you confirm eligible and compared this option against other Colorado Assistance Programs.
MetroDPA (Denver Metro + Front Range)
MetroDPA is a down payment assistance program sponsored by the City & County of Denver that helps buyers in participating Front Range cities and counties. Assistance is provided as a deferred second mortgage that is interest-free with no scheduled payments in many cases, and is typically repaid when you sell the home or refinance the first mortgage (program rule apply)
If you’re buying the Denver metro area or along the Front Range, metroDPA is one of the most common options to explore.
Optional Qualifier:
metroDPA eligibility is based on factors like income and credit; the City of Denver notes program eligibility may extend to household up to a stated income cap and credit score threshold (verifying current guidelines)
Pike Peak DPA Program (El Paso County / Colorado Springs)
If you’re buying a home in El Paso County (including Colorado Springs), the Pikes Peak DPA Program is a major local option to consider. The program states there is no first-time homebuyer requirement, you must qualify with an approved program lender, and household income must be within the program limit (guidelines apply).
We’ll confirm whether your property location, loan type, income, and credit fit the current program rules and walk you through the steps.
Local City & County Programs in Colorado
In addition to statewide and regional programs, some Colorado cities and counties offer their own homebuyer assistance and affordable homeownership programs. Availability can depend on where you’re buying, your income, and whether the home is part of an affordable/resale-restricted program.
Examples of local programs you may be eligible for include:
- Denver Affordable Homeownership (income/asset guidelines may apply)
- City of Longmont / Boulder County DPA loans (local program with specific eligibility and application steps)
- City of Boulder homeownership + partner DPA Programs (guides and local options)
- Some cities participate in metroDPA (for example, Littleton reference metroDPA participation)
Chenoa Fund (National Down Payment Assistance Option)
Chenoa Fund is a national down payment assistance option offered through participating lenders. The program is designed to help eligible buyers who need assistance with upfront costs. Chenoa Fund describes multiple second – mortgage structures (including forgivable and repayable options), and availability can depend on your loan type and lender participation.
If a Colorado – based program isn’t a fit, we can check whether Chenoa Fund is available for your scenario and compare the total monthly payment and long-term cost.
Talk with Colorado home loan experts
At Forge Home Consulting, we believe homeownership should be accessible to everyone, regardless of financial barriers. That’s why we provide resources like our Zero Down FAQs, Downpayment Assistance Grants, and Mortgage Loan Programs to help buyers make informed decisions. Whether you’re exploring grants, learning about different loan options, or seeking guidance on our Colorado Down Payment home loan, we’re here to educate and empower you.
Our Big Why is to help aspiring homeowners build generational wealth by eliminating the traditional obstacles to homeownership. Don’t let financial concerns hold you back—consult with Forge Home Consulting today and take the first step toward securing your dream home!
The Benefits of Down Payment Assistance
Franz Sarangaya
Mortgage Loan Officer NMLS# 2624915
Forge Home Lending empowers aspiring homeowners to build generational wealth through real estate. With transparency and innovative solutions, we simplify the path to homeownership.
