Colorado Down Payment Assistance Programs: What's Available in 2026
For most buyers in the Denver area, the down payment isn't the scary part — it's coming up with it while also covering rent, groceries, and life. That gap between "ready to buy" and "have enough saved" is where most first-time buyers get stuck.
The good news: Colorado has real programs that can close that gap. Here's what's actually available in 2026, who qualifies, and how to use it.
Key Takeaways
- CHFA offers up to 3% of the purchase price as a down payment grant or second mortgage — you don't need to save it all yourself.
- Denver-area buyers may also qualify for Metro Mortgage Assistance Plus, a city-specific program with its own eligibility rules.
- FHA loans require as little as 3.5% down with a 580+ credit score; conventional loans can go as low as 3%.
- Veterans can buy with 0% down through a VA loan — no PMI required.
- Income limits apply to most programs and vary by county, so check your specific situation before assuming you don't qualify.
CHFA: Colorado's Main Down Payment Assistance Program
The Colorado Housing and Finance Authority (CHFA) is the state's primary resource for homebuyer assistance. If you're buying in Colorado and need help with a down payment, this is where you start.
CHFA offers down payment assistance equal to up to 3% of your loan amount, structured either as a grant (no repayment required) or a second mortgage (repaid when you sell or refinance). Which one you get depends on the specific CHFA program you qualify for.
CHFA doesn't lend directly — you work with an approved CHFA lender who originates the loan. The assistance is layered on top of a CHFA-eligible first mortgage (FHA, VA, USDA, or conventional).
CHFA also requires buyers to complete an approved homebuyer education course before closing. It's usually done online and takes a few hours — not a big lift, but plan for it.
Metro Mortgage Assistance Plus (Denver-Specific)
If you're buying within Denver city limits, there's a second option worth knowing: Metro Mortgage Assistance Plus. This is a Denver-specific program that provides down payment and closing cost assistance to income-eligible buyers purchasing in the city.
It's designed to work alongside a first mortgage and targets buyers who might not quite clear the hurdle of a 3-5% down payment on their own. Income limits apply here too, and the program has limited funding — it's not guaranteed to be open year-round.
If you're set on buying in Denver proper, ask your lender whether Metro Mortgage Assistance Plus is currently active and whether you qualify. It's worth the five-minute conversation.
Minimum Down Payment by Loan Type
Down payment assistance doesn't exist in a vacuum — it's tied to the loan type you're using. Here's what each option requires:
- FHA loan: 3.5% down with a 580+ credit score. Scores between 500–579 require 10% down. FHA is the most common path for first-time buyers using CHFA assistance.
- Conventional loan: As low as 3% down with good credit, but PMI (private mortgage insurance) is required until you hit 20% equity. PMI adds to your monthly cost — factor it in.
- VA loan: 0% down for eligible veterans, active-duty service members, and surviving spouses. No PMI. If you qualify, this is almost always the best deal on the table.
- USDA loan: 0% down for properties in eligible rural areas. Parts of Colorado outside metro Denver qualify — worth checking if you're open to location flexibility.
How to Qualify for Colorado Down Payment Assistance
Most programs share a similar set of requirements. Here's what to expect:
- Income limits: Most programs cap household income — usually somewhere between 80% and 120% of the area median income (AMI). The exact number depends on your county and household size.
- Credit score: CHFA programs typically require a minimum 620 credit score. FHA loans allow lower, but lenders have overlays — most won't go below 580 in practice.
- Primary residence only: Down payment assistance is never for investment properties or vacation homes. You must plan to live in the home.
- First-time buyer requirement: Most (but not all) programs define "first-time buyer" as not having owned a home in the past three years. If you owned something 4+ years ago, you may still qualify.
- Homebuyer education: Almost every assistance program requires a HUD-approved course before closing.
The fastest way to know if you qualify is to get pre-qualified with a CHFA-approved lender. That conversation takes about 20 minutes and tells you exactly where you stand before you start shopping.
If you're not sure where to look, CHFA's website has a lender directory and current program details — it's maintained by the state and up to date.
Other Costs to Plan For
Getting your down payment covered is only part of the picture. Closing costs in Colorado typically run 2–3% of the purchase price on top of the down payment — and most assistance programs don't cover those automatically.
Some programs (including certain CHFA options) include closing cost assistance, but it depends on the loan structure. Ask your lender specifically: "Does this assistance cover closing costs, or just the down payment?"
Also worth understanding before you close: how Colorado property taxes work. Your tax bill will affect your monthly payment if taxes are escrowed — and for first-time buyers, that number is often a surprise.
For a broader look at where the Denver market stands right now, see the Denver Metro housing market update for spring 2026.
Frequently Asked Questions
Does CHFA down payment assistance have to be repaid?
It depends on the program. CHFA offers both grants (no repayment) and second mortgages (repaid when you sell, refinance, or pay off the first mortgage). Your lender will walk you through which structure applies to your loan — ask specifically before you assume it's free money.
Can I use down payment assistance if I've owned a home before?
Yes, in many cases. Most programs define "first-time buyer" as not having owned a primary residence in the past three years — not ever. If you owned a home before that window, you may still qualify. Some CHFA programs also have no first-time buyer requirement at all, particularly in targeted areas.
What credit score do I need for Colorado down payment assistance?
Most CHFA programs require a minimum 620 credit score. FHA loans (which CHFA assistance can be stacked with) technically allow scores as low as 580 for 3.5% down, but individual lenders often have stricter overlays. If your score is below 620, work on improving it before applying — a few months of on-time payments can make a real difference.
The Bottom Line
The down payment is the single biggest reason qualified buyers wait longer than they need to. Colorado's assistance programs exist specifically to shorten that timeline — and most buyers don't realize what's available until they ask.
If you're thinking about buying in the Denver Metro area and want to know what programs you actually qualify for, I'm happy to point you toward the right lenders and walk through the numbers with you. No pressure, just real information.
Dom Roberts
(720) 419-1286