Three Point Mortgage is not a CHFA Participating Lender, and neither Chris Cartwright nor Three Point Mortgage is affiliated with, endorsed by, or representing the Colorado Housing and Finance Authority.
CHFA is a separate public entity. Its program names and materials belong to CHFA. This page explains CHFA programs independently so buyers can understand them. CHFA loans are originated through wholesale lenders that hold agreements with CHFA. Confirm all program terms directly with CHFA at chfainfo.com, the official source, before making a decision.
The down payment is the single biggest reason qualified buyers in Colorado stay on the sidelines. Not the income. Not the credit score. The cash. And what most of those buyers don't know is that Colorado has built a network of programs specifically designed to solve that problem.
I work with first-time buyers across the Denver metro and Front Range every week, and the question I hear most often is some version of: "Are there any grants or programs that can help with the down payment?" The answer is yes, more than most people realize, and a meaningful number of buyers who think they don't qualify actually do.
The difference between a grant and down payment assistance
Before going through the programs, it's worth clarifying the terminology because it gets used loosely.
A grant is money you don't have to repay. It's an outright contribution toward your down payment or closing costs. True grants exist in Colorado but they're less common than most buyers expect.
Most "down payment assistance" is structured as a second mortgage, either deferred (no payments until you sell or refinance) or forgivable (balance forgiven after a set period, typically 3 to 10 years). These are not grants in the strict sense, but they function similarly for buyers who plan to stay in the home long enough to have the balance forgiven.
Both types reduce your cash to close significantly. The distinction matters when you're comparing programs and calculating your actual out-of-pocket cost.
CHFA: Colorado's primary statewide program
The Colorado Housing and Finance Authority runs the most widely used down payment assistance in the state. It helps to understand that CHFA separates the first mortgage from the assistance. SmartStep, Preferred, FirstStep, and FirstGeneration are first mortgage programs. The assistance attaches to whichever one you use, and it comes in two forms:
- CHFA DPA Grant: Up to the lesser of $25,000 or 3 percent of the total first mortgage loan amount. It is a grant, so it is not repaid.
- CHFA DPA Second Mortgage Loan: Up to the lesser of $25,000 or 4 percent of the total first mortgage loan amount, with no monthly payments and repayment in full when certain events occur. First-generation homebuyers can access up to $25,000 regardless of first mortgage size.
Neither form counts against your debt-to-income ratio. That is a real advantage over borrowing down payment funds another way.
Basic eligibility runs to a minimum 620 credit score, a $1,000 minimum borrower contribution which may be a gift, and completion of a CHFA-approved homebuyer education course by every borrower individually. First-time buyer status is not required on SmartStep or Preferred, though it is on FirstStep and FirstGeneration. Income limits and purchase price limits differ sharply between those two groups, which is covered in the 2026 CHFA income limits breakdown. Confirm all current terms at chfainfo.com.
The income limits are higher than most buyers assume. In the Denver metro, a household earning into the mid-six figures often still qualifies. Check current CHFA income and purchase price limits for your specific county before assuming you don't qualify.
Assistance of this scale, applied against a program with a lower down payment requirement, can reduce the cash needed at closing dramatically. Combined with a seller concession, the out-of-pocket figure is often far lower than buyers assume before they run it.
Metro Mortgage Assistance Plus (Metro DPA)
The Metro Mortgage Assistance Plus program serves the Denver metro area specifically and offers a forgivable second mortgage of up to 4% of the loan amount. The balance is forgiven after three years of on-time payments, making it effectively a grant for buyers who stay in the home.
Key details: available in Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson counties, minimum 640 credit score, income limits apply (typically up to 80% of area median income, though limits vary), must be used with a 30-year fixed first mortgage, and the home must be your primary residence.
Denver's down payment assistance programs
The City and County of Denver runs several assistance programs for buyers purchasing within Denver city limits.
Denver Metro Mortgage Assistance Plus: Described above, covers Denver county purchases.
Affordable Homeownership Program: Denver offers below-market homes in specific developments for income-qualifying buyers. These are separate from the mortgage assistance programs and involve purchasing a deed-restricted property rather than receiving assistance on a market purchase.
Denver also periodically offers additional assistance through federal HOME and CDBG funding. These programs open and close based on available funding, so the best approach is to confirm current availability with a lender who works in Denver regularly.
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Colorado Springs down payment assistance
Colorado Springs buyers have access to CHFA statewide programs plus several local options. The Colorado Springs Housing Authority administers programs specifically for El Paso County buyers, and the city's large veteran and military population makes VA loans, which require no down payment, one of the most commonly used tools in that market.
USDA loans: no down payment for rural and suburban Colorado buyers
For buyers purchasing in rural and suburban Colorado outside major metro areas, USDA Rural Development loans offer 100% financing with no down payment required. The property must be in a USDA-eligible area (many Front Range suburbs qualify, which surprises buyers) and income limits apply. USDA is one of the most underused programs available in Colorado.
VA loans: the most powerful zero-down option
For eligible veterans, active duty service members, and surviving spouses, the VA home loan benefit provides 100% financing with no down payment and no private mortgage insurance. This is not a grant program, but for qualifying buyers it is the strongest financing tool available to those who have served.
Colorado has one of the largest veteran populations in the country. If you have served or are currently serving and haven't used your VA benefit, it should be the first thing you evaluate before any assistance program.
Stacking programs: what's allowed and what isn't
Some programs can be layered together and some cannot. A few combinations that work:
- CHFA first mortgage plus CHFA SmartStep grant
- FHA first mortgage plus Metro DPA forgivable second
- VA financing plus seller-paid closing cost concessions (not a grant, but it reduces cash to close)
What generally doesn't work: stacking two down payment assistance second mortgages on the same property, or combining CHFA with certain other state programs that have conflicting guidelines. A lender who works with these programs regularly can tell you exactly what's stackable for your specific situation and purchase price.
The honest caveat on grant programs
Grant and assistance programs come with tradeoffs. CHFA's rate is typically slightly above the lowest available market rate because the program is funding the assistance. Metro DPA's three-year forgivability period means you need to stay in the home for it to function as a true grant. And all of these programs have income and purchase price limits that exclude higher earners and more expensive properties.
For buyers whose primary barrier is cash to close, these programs are genuinely valuable and can move your purchase timeline up by years. For buyers with strong savings and high income, a conventional loan at the best available wholesale rate often comes out ahead over the life of the loan. The right answer depends entirely on your specific numbers. If you want a sense of how I work through these situations, client reviews are here, and there is more background on my approach if that helps.
Colorado public school employees, in any role, have access to a separate program with a much larger assistance amount: see the CHFA Schools To Home guide, along with a Shared Appreciation Calculator that models what the shared appreciation obligation costs at sale.
Buying in a specific part of the metro? I have local guides for Westminster · Lakewood.
Chris Cartwright is a licensed mortgage broker serving first-time homebuyers across Colorado, Washington, Texas, California, Arizona, and Florida. He works with buyers to identify every program they qualify for and runs side-by-side comparisons so the decision is clear.
Want to know which programs you qualify for?
A 15-minute call is all it takes to check your eligibility for CHFA, Metro DPA, and other Colorado programs and see exactly how much assistance you could receive. I can originate CHFA loans through wholesale lenders who hold the participating lender agreements with CHFA. If you want to know which program actually fits your situation, call me and we will work it out.
Program details, income limits, and purchase price limits are subject to change. This content reflects programs available as of June 2026. Contact a lender that participates in the relevant program for current availability. Chris Cartwright and Three Point Mortgage are not a CHFA Participating Lender and are not affiliated with, endorsed by, or representing the Colorado Housing and Finance Authority. CHFA loans are originated through wholesale lenders that hold agreements with CHFA. This content is independent and educational. All loans subject to credit approval. Equal Housing Lender.