Colorado Down Payment Assistance Programs
First time home buyers in Colorado may be eligible to receive down payment assistance. This includes programs offered throughout the entire state, as well as several locally offered programs. You can learn more about the Colorado statewide programs below.
If you would like some help checking your eligibility for down payment assistance, please fill out this form. We will match you with a mortgage lender that specializes in helping first time home buyers in Colorado find down payment assistance.
Colorado Housing Assistance Corporation (CHAC):
The CHAC provides a down payment assistance program for low and moderate income families. The loans are provided as a second mortgage, and are repaid on a monthly basis. The assistance can be as much as 6% of the purchase price, or up to $10,000 (whichever is less).
Program Requirements
To begin the application process, borrowers must first attend a CHAC approved home buyer class. Following this, an application for assistance can then be filled out. Successful applicants are expected to adhere to certain guidelines, which includes:
- The borrower cannot have owned any residential property in the past three years.
- Contribute $1,000 towards the down payment and/or closing costs.
- The property must be inhabited as a primary residence. Should it not be used this way, the loan will be due back in full, along with any accumulated interest immediately.
- Income can not exceed 80% of the average median income (AMI) for the location of the property.
- Full disclosure of income and assets for every person that will be living in the home must be provided
- At closing, no money back is provided.
- Should the borrower pay off the entire first mortgage, the remaining amount on the CHAC loan will be due.
To learn more about the CHAC program and it’s requirements, click here.
Colorado Housing Finance Agency (CHFA):
The Colorado Housing Finance Agency offers two different down payment assistance programs:
CHFA DPA Grant
The CHFA offers a grant up to 4% of the purchase price. On a $300,000 home, this would be $12,000! The down payment assistance program is available to use with an FHA loan. If you want some assistance to see if you qualify for the CHFA DPA Grant, a loan specialist can help.
CHFA SmartStep
The CHFA offers program, which is a special home buying loan attached to down payment assistance. We do not offer or collaborate on the SmartStep program. If you are interested in the program, you can learn more about SmartStep here.
Get Matched with a Mortgage Lender
A loan representative can help you determine what mortgage programs you may qualify for, and also check your eligibility for down payment assistance. If you would like to receive a free consultation, we can help match you with a mortgage lender that offers first time home buyer loans in Colorado.