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 program in the state. CHFA offers two structures:
- CHFA SmartStep: A grant of up to 3% of the loan amount that does not need to be repaid. This is the most straightforward assistance available in Colorado.
- CHFA HomeAccess: A second mortgage of up to 4% of the loan amount at a below-market interest rate, paired with a CHFA first mortgage.
Basic eligibility requirements: minimum 620 credit score, must not have owned a primary residence in the past three years (with exceptions for targeted areas), income limits vary by county and household size, purchase price limits apply, and all borrowers must complete an approved homebuyer education course.
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.
Loan amount (FHA, 3.5% down): $463,200. CHFA SmartStep grant (3%): $13,896. Down payment required: $16,800. After grant applied to closing costs: total cash needed at closing approximately $5,000 to $8,000 depending on seller concessions. That is a home purchase for less than most people keep in a checking account.
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.
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 zero down payment) one of the most commonly used tools in that market.
USDA loans: zero down for rural 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 loans are one of the most underused zero-down options 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, no private mortgage insurance, and competitive rates. This is not a grant program, but it eliminates the down payment entirely for qualifying buyers and is the strongest financing tool available for those who've 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 loan plus seller-paid closing cost concessions (not a grant but 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.
Chris Cartwright is a CHFA-approved 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.
Program details, income limits, and purchase price limits are subject to change. This content reflects programs available as of June 2026. Contact a participating lender for current program availability. All loans subject to credit approval. Equal Housing Lender.