Saving for a down payment is the biggest hurdle for most first-time buyers in Colorado. The good news: there is real help available. State and metro-area programs can cover thousands of dollars of your down payment and closing costs. Some of it never has to be paid back. Here’s a plain-English guide to the main options in 2026, who qualifies, and how to get started.
Note: I’m a real estate broker, not a financial advisor or lender. Program amounts, income limits and rules change often, so confirm current details with a participating lender before you make plans.
CHFA: Colorado’s statewide program
The Colorado Housing and Finance Authority (CHFA) doesn’t lend to buyers directly. It works through approved local lenders, who offer a CHFA first mortgage plus one of two kinds of down payment assistance:
- Down payment assistance grant: up to 3% of your first mortgage, capped at $25,000. You never repay it.
- Second mortgage loan: up to 4% of your first mortgage, capped at $25,000. There’s no monthly payment; you repay it when you sell, refinance or pay off the home.
On a $400,000 loan, that’s up to $12,000 as a grant or $16,000 as a second mortgage. You pick one, not both. The grant usually comes with a slightly higher interest rate on the first mortgage, so ask your lender to compare the monthly payment both ways.
Typical CHFA requirements include a minimum credit score around 620, household income and purchase price under CHFA’s limits for your county, at least $1,000 of your own money toward the purchase, and a CHFA-approved homebuyer education class for every borrower. CHFA also has options for first-generation buyers and buyers with a permanent disability.
metroDPA: Denver-area assistance
metroDPA is run by the City and County of Denver and covers Denver and many surrounding cities and counties. It offers a 0% interest second mortgage of 3% or 4% of your loan, with no monthly payment. You repay it when you sell, refinance or move out. Inside the City and County of Denver, the Denver Advantage version offers up to 5%.
Two things make metroDPA stand out: you don’t have to be a first-time buyer, and the income limits are higher than many programs. You’ll still need a minimum credit score of about 620, a homebuyer education class, and an approved lender. It works with FHA, VA, USDA and some conventional loans.
Other programs worth asking about
- County and city programs. Several counties and cities run their own down payment help, often with their own income limits. Availability changes through the year as funds run out.
- Colorado Housing Assistance Corporation (CHAC). A nonprofit offering second-mortgage help to qualified first-time buyers in the Denver area.
- Employer and lender programs. Some employers, credit unions and banks offer closing-cost credits or grants of their own. It never hurts to ask.
- VA and USDA loans. If you’re a veteran, or buying in an eligible rural area, these loans may need no down payment at all.
Do you count as a “first-time” buyer?
Probably more than you think. Many programs treat you as a first-time buyer if you haven’t owned a home in the past three years. So if you sold a home years ago and have been renting since, you may still qualify. And some programs, like metroDPA, don’t require first-time buyer status at all.
How to get started
- Take a homebuyer education class early. Most programs require one, and they’re offered online and in person. Classes often fill up, and the certificate is typically good for 12 months.
- Talk to a lender who offers CHFA and metroDPA loans. Not every lender does. Ask which programs you qualify for and compare the monthly payment with and without assistance.
- Get pre-approved. You’ll know your real budget, and sellers will take your offer seriously.
- Plan for timing. Assistance loans can add a few days to closing. A good agent will build that into your offer so your contract stays on track.
Frequently asked questions
Can I combine CHFA and metroDPA?
Generally no. Each program is tied to its own first mortgage, so you’ll usually choose one. A lender who offers both can show you which leaves you with the lower payment and cash to close.
Will assistance make my offer weaker?
Not if it’s handled well. A strong pre-approval and a clear closing timeline matter more to sellers than where your down payment comes from.
Is there a version of this guide in Spanish?
Yes. Read Programas para comprar su primera casa en Colorado. If you don’t have a Social Security number, see our guide to ITIN loans in Colorado.
Ready to buy your first home?
Check out the latest Denver market update, search every home for sale on our live MLS search, or call us at (720) 403-2940. We’ll connect you with lenders who know these programs and help you plan every step. You can also send us a message.