What is Down Payment Assistance?
Down payment assistance (DPA) programs help homebuyers cover their down payment and closing costs. In Colorado, these programs are offered by the state (Colorado Housing and Finance Authority), counties, cities, and nonprofit organizations.
For most homebuyers, the down payment is the biggest barrier to homeownership. Even with FHA loans requiring just 3.5% down, a $400,000 home still needs $14,000 upfront — plus closing costs. DPA programs bridge this gap, sometimes covering 100% of your upfront costs.
Types of Down Payment Assistance in Colorado
Understanding the different types of assistance helps you choose the best option for your situation.
Grants
Free money — no repayment required
Grants are the best form of DPA because you never pay them back. In Colorado, grants include CHFA SmartStep Plus grant option (up to $25,000) and Boulder County PIE matched savings (up to $4,000). These often have limited funding.
Examples: CHFA SmartStep Plus grant (up to $25,000), Boulder County PIE ($4,000)
Forgivable Loans
Forgiven after 5 years of occupancy
These are loans that become grants if you stay in your home for a set period (usually 5 years). If you sell or refinance early, you repay a prorated amount. This is the most common type of DPA in Colorado.
Examples: Pikes Peak DPA (up to 5% forgivable), Aurora HOAP ($10,000)
Deferred Loans
Repaid when you sell, refinance, or pay off mortgage
These loans have no monthly payments but must be repaid when you sell the home, refinance, or pay off your first mortgage. Interest rates are typically 0-3%. Good option if you plan to stay long-term.
Examples: metroDPA (3–4% deferred), Colorado Roots ($50,000), Broomfield DPA ($50,000)
Second Mortgages
Monthly payments at below-market rates
These are traditional loans with monthly payments, but at favorable rates. CHFA offers 30-year second mortgages at the same rate as your first mortgage. Good for buyers who want maximum assistance and can handle the payment.
Examples: CHFA Preferred Plus ($25,000), CHAC Mortgage Assistance ($12,000)
Colorado DPA Eligibility Requirements
Most programs share similar requirements. Here's what you typically need to qualify:
Income Limits
Most programs use Area Median Income (AMI) limits that vary by household size and county.
2026 Typical Limits (Family of 4):
- • 80% AMI: ~$70,000-$85,000/year
- • 100% AMI: ~$88,000-$106,000/year
- • 120% AMI: ~$105,000-$130,000/year
Take our quiz to check income limits for your specific situation.
Property Requirements
- Must be your primary residence
- Located in the program's service area
- Meet purchase price limits (varies by program)
- Usually single-family, condo, or townhome
Credit Requirements
- 620+ credit score for most programs
- 660+ score for best options
- Stable employment history
- Acceptable debt-to-income ratio
Education Requirements
- Most programs require a homebuyer education course
- Online courses available (2-8 hours)
- HUD-approved counseling accepted
- Some programs waive this for repeat buyers
Colorado Springs & Pikes Peak DPA
El Paso County's Pikes Peak DPA (Turnkey Plus) is one of the most searched programs in Colorado — a forgivable soft second up to 5% of your first mortgage, often stacked with CHFA SmartStep Plus through approved lenders. FHA combinations are common for Colorado Springs buyers.
- 2026 income limit (family of 4): $93,100 at 80% AMI — view all El Paso County limits
- No first-time buyer requirement for Pikes Peak DPA
- Covers Colorado Springs, Fountain, Monument, Falcon & all El Paso County
Top Colorado DPA Programs for 2026
Here are the highest-value programs currently available:
Pikes Peak DPA
El Paso County • Forgivable Loan
CHFA SmartStep Plus
Statewide • Grant / Deferred
Boulder H2O
Boulder • Deferred Loan
Colorado Roots DPA
Front Range • Deferred Loan
metroDPA
Denver metro • Deferred Loan
Broomfield DPA
Broomfield • Deferred Loan
Aurora HOAP
Aurora • Forgivable Loan
Programs by Location
Many programs are location-specific. Find assistance available in your area:
How to Apply for Colorado DPA
Follow these steps to secure your down payment assistance:
Check Your Eligibility
Take our free 5-minute quiz to see which programs you may qualify for. No SSN or sensitive info required.
Take the QuizComplete Homebuyer Education
Most programs require a HUD-approved homebuyer education course. Online courses take 2-8 hours and cost $50-100. Some programs reimburse this cost.
Get Pre-Approved with a Participating Lender
Work with a lender experienced in DPA programs. They'll verify your income, credit, and eligibility for specific programs. Not all lenders offer all programs.
Find Your Home
Search for homes within program price limits and geographic areas. Your lender can help you understand the limits for programs you're targeting.
Apply for DPA Programs
Your lender submits applications on your behalf. Some programs like city grants require separate applications. Processing times vary from 1 day to 2+ weeks.
Close on Your Home
DPA funds are disbursed at closing. You'll sign documents for your first mortgage plus any DPA loans. Congratulations — you're a homeowner!
Frequently Asked Questions
What is down payment assistance (DPA)?
Down payment assistance programs provide financial help to homebuyers for their down payment and closing costs. In Colorado, this assistance comes as grants (free money), forgivable loans (forgiven after 5+ years), deferred loans (repaid when you sell), or second mortgages (monthly payments).
How much down payment assistance can I get in Colorado in 2026?
Colorado homebuyers can access up to $100,000+ in combined assistance by stacking multiple programs. Individual programs range from $4,000 (Boulder County PIE) to $100,000 (Boulder H2O). Most buyers qualify for $15,000-$50,000 total.
What are the income limits for Colorado DPA programs?
Most Colorado DPA programs use Area Median Income (AMI) limits. Common limits are 80% AMI (approximately $93,000-$107,000 for a family of 4 in metro counties) or 120% AMI (approximately $139,000-$160,000). CHFA SmartStep Plus uses a flat $174,440 household income cap.
Do I have to be a first-time homebuyer?
Not always! While many programs target first-time buyers, several Colorado programs are available to repeat buyers. CHFA SmartStep Plus, metroDPA, and some city programs welcome all buyers who meet income requirements.
Can I combine multiple DPA programs?
Yes! Many Colorado programs can be stacked. For example, you could combine metroDPA (3–4% deferred second) with CHFA SmartStep Plus (up to $25,000). Some Front Range buyers access $50,000+ in combined assistance.
How do I apply for Colorado down payment assistance?
Start by taking our free eligibility quiz to identify programs you may qualify for. Then work with a participating lender who can verify eligibility and guide you through applications. Most programs require homebuyer education courses.
Last updated: April 23, 2026 •How we track programs
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