Denver Real Estate - Down Payment Assistance Programs

Would you like to purchase a home but are short on funds for a down payment? You will be glad to know there is a solution to this problem.  Buyers who have income and good credit can apply for a no-money-down mortgage.  Here is an overview of a few programs that are available:


Colorado Housing and Finance Authority is a Colorado agency that provides a variety of loan programs.  CHFA loans are made through pre-approved lenders throughout Colorado.

Highlights of CHFA Financing:

Programs require as little as$1000 contribution by the home buyer

Offers down payment grants of 3% (no repayment required) 

Additional assistance for closing costs of up to 2%

CHFA programs offer low, fixed rates for the term of the loan

There is no “first time home buyer” requirement

Home buyers are required to attend an Education Class prior to obtaining financing

CHAC -  

Colorado Housing Assistance Corporation provides down payment assistance in the form of a second loan.  The loan is made in conjunction with the first mortgage providing the home buyer with 100% financing (no upfront down payment).  The CHAC loan will be paid monthly, so the borrower will be making two house payments, one for the first mortgage and the other for the second mortgage.

Highlights of CHAC Financing:

All borrowers are required to have a minimum contribution of $1000 (this amount cannot be gift funds)  There are some exceptions, i.e. borrowers with disability the fee is $750.

Borrower may not receive any money back from closing

The loan is a mortgage on your home and must be paid back

There is no prepayment penalty if borrower pays off loan in advance

The home must be owner occupied – this financing is NOT for investors, so if you leave the home the CHAC loan               must be paid off.

The borrower cannot own other personal residences

The borrower must attend an approved Home Buyer Class and a CHAC borrower counseling session.


Metro Mortgage Assistance Plus – offers grants for low and moderate income borrowers for up to 4% of the loan.  This is a grant and does not have to be paid back.

Highlights of the Metro Mortgage Assistance Program:

Income needs to be less than $95,880 for households of two or less (and less than $111,860 for three or more)

FICO score needs to be 640 or more

Borrower must contribute .5% (one half of 1%)

Borrower must attend approved home buyer class

Primary residence only 

Home must be located within the Metro Mayors Caucus jurisdictions

Many Colorado Communities have programs to assist home buyers within their County

Aurora - HOAP –

Home Ownership Assistance Program  

Aurora’s HOAP program is HUD-approved offering counseling and financial assistance (one-time per family)  Requirements for this program are strict, homes must be within the City of Aurora. The borrower is required to take home buyer classes which are held in both English and Spanish.  

Douglas County – DCHP –

Douglas County Housing Partnership

For First Time buyers who's income is at or below 80% of the Area Median Income, DCHP offers assistance to those who can qualify.  Preference is given to borrowers currently living or working within Douglas County.  Borrower must contribute 1% and the home price cannot exceed $300,000.  Yes, the borrower must attend an approved CHFA Home Buyer Class.


Colorado has many offerings for home buyers needing down payment assistance.  These programs can provide a path to home ownership, but as you follow that path don’t do so blindly.  Each program comes with small print.  Be sure you understand what you are getting into, and how it will affect you if your life changes.

Consult first with a Realtor.  Your Realtor will offer you advice on the best lender for you to consult.  Not all lenders are approved or specialize in Down Payment Assistance.  It’s important that you connect with a lender who is going to review your situation and offer the best solution for you.