Colorado’s down payment assistance landscape addresses one of the most expensive housing markets in the Mountain West, with state programs through the Colorado Housing and Finance Authority offering up to $25,000 in assistance and Denver’s MetroDPA providing up to 6% of the loan amount as a forgivable second mortgage. The 2024 launch of CHFA’s FirstGeneration program specifically targets first-generation homebuyers — those whose parents never owned a home — adding a new pathway that has already funded over $130 million in first mortgages in its first year. Here’s every program worth knowing about in 2026.
CHFA State Programs
FirstStep and FirstStep Plus
CHFA’s FirstStep program pairs a 30-year fixed-rate FHA loan with down payment assistance of up to the lesser of $25,000 or 3% of the first mortgage. The assistance comes as a second mortgage with favorable terms, and the program requires a minimum 620 credit score with debt-to-income limits of 50% for scores between 620 and 659, expanding to 55% for scores of 660 or higher.
Eligibility covers first-time homebuyers, qualified veterans, and any buyer purchasing in a targeted area. A minimum $1,000 personal contribution is required (gifts from family are allowed), and completion of a CHFA-approved homebuyer education course is mandatory before closing. The maximum loan amount across all CHFA programs is $806,500, reflecting Colorado’s higher home prices.
FirstGeneration
Launched in 2024, CHFA FirstGeneration provides up to $25,000 in down payment assistance as a deferred-repayment second mortgage for first-generation homebuyers — defined as those whose parents or guardians never owned a home, or who were raised in foster care. Repayment is deferred until the home is sold, refinanced, paid off, or no longer used as a primary residence, with no monthly payments during the deferral period.
The program’s first-year results demonstrate the demand: 375 loans made between April 2024 and April 2025, totaling $130.5 million in first mortgages and $9.1 million in down payment assistance. The demographic reach has been significant — 69.2% of loans benefited Hispanic/Latino borrowers, addressing a wealth gap that has historically limited homeownership access for first-generation buyers.
Applicants work with their lender to submit an affidavit proving first-generation status. The program pairs with a CHFA fixed-rate 30-year mortgage and follows standard CHFA income limits.
SmartStep
CHFA SmartStep provides a non-repayable grant for down payment and closing cost assistance — meaning no repayment is required under any circumstances. The program works with FHA, VA, and USDA loans and has an income cap of $162,960. For buyers who qualify, SmartStep represents the simplest and most favorable form of assistance available at the state level.
Enhanced Assistance for Special Populations
CHFA provides up to $25,000 in down payment assistance regardless of mortgage amount for individuals with permanent disabilities and first-generation homebuyers through the FirstGeneration program. This enhanced cap removes the standard 3% limitation and ensures that buyers who face the greatest barriers to homeownership receive the most substantial assistance.
Denver Metro Programs
MetroDPA
MetroDPA provides up to 6% of the first mortgage loan amount as a three-year forgivable second mortgage with zero interest and no monthly payments. After three years, the loan is forgiven entirely — no repayment required as long as the home remains your primary residence. Selling or refinancing before the three-year mark triggers repayment of the remaining balance.
The program requires a minimum 660 credit score, maximum $150,000 annual household income, and completion of a HUD- or CHFA-approved homebuyer education course. MetroDPA works with FHA, USDA, and VA loans and covers the Denver metro area and surrounding Front Range communities.
On a $500,000 home with a $475,000 mortgage, 6% equals $28,500 in forgivable assistance — one of the most generous metropolitan DPA programs in the country. The three-year forgiveness window is aggressive, meaning buyers who stay in their home just three years effectively receive the full amount as a grant.
Metro Mortgage Assistance Plus
The Metro Mortgage Assistance Plus program provides a grant of up to 4% of the mortgage amount for down payment and/or closing costs. Income limits are $95,880 for one-to-two-person households and $111,860 for three or more persons. The minimum credit score is 640, the maximum DTI is 45%, and the property must be a single-family home, duplex, condo, or townhome used as an owner-occupied primary residence.
City of Aurora Home Ownership Assistance
The City of Aurora provides up to $10,000 in down payment assistance for first-time homebuyers who complete homebuyer education classes. Aurora’s lower price points relative to Denver proper make this program particularly effective — $10,000 covers a 3.5% FHA down payment on homes up to approximately $285,000.
Federal Loan Programs in Colorado
FHA Loans
FHA loans require a minimum 3.5% down payment with a credit score of 580 or above (620 through CHFA programs). Colorado’s high home prices mean FHA loan limits are correspondingly high — the 2026 limit for most Front Range counties reflects the elevated market. CHFA and MetroDPA assistance can cover the entire FHA down payment requirement.
VA Loans
VA loans provide zero-down financing for veterans and active-duty military. Colorado’s military installations — Fort Carson, Peterson Space Force Base, Buckley Space Force Base, the Air Force Academy — generate significant VA loan demand. Combined with CHFA’s veteran eligibility exemptions and MetroDPA’s 6% assistance for closing costs, VA borrowers in Denver can close with minimal cash.
USDA Loans
USDA loans offer 100% financing in designated rural and suburban areas. While the Denver metro core is excluded, communities along the Eastern Plains and in the foothills — including areas within commuting distance of the metro — qualify for USDA eligibility.
Programs for Specific Professions
First Responder Loan Discount
Colorado’s First Responder Loan Discount program provides $500 off closing costs for police officers, firefighters, sheriffs’ deputies, 911 dispatchers, military members, community service officers, ER nurses, ER doctors, and EMTs. The discount is modest but stacks with other assistance programs.
Homes for Heroes
The Homes for Heroes program assists military members, firefighters, police officers, and teachers with buying, selling, or refinancing homes through participating lenders who offer reduced fees and closing cost savings.
Dearfield Fund for Black Wealth
The Dearfield Fund provides up to $40,000 (or 15% of the purchase price, whichever is less) in down payment assistance specifically targeting Black homebuyers in Colorado. Named after the historic Black settlement in Weld County, the program addresses the racial wealth gap directly through one of the most generous targeted assistance programs in the state.
How to Apply
CHFA programs require working with a CHFA-approved participating lender. The lender handles the application and determines which programs — FirstStep, FirstGeneration, SmartStep — you qualify for based on income, credit, and buyer status. The complete lender list is available at chfainfo.com.
MetroDPA applications go through qualified MetroDPA lenders, and Metro Mortgage Assistance Plus requires a qualifying lender for a 30-year fixed-rate loan. Nearly all programs require a HUD- or CHFA-approved homebuyer education course before closing — completing this early in the process prevents delays.
Stacking for Maximum Benefit
Colorado’s program landscape allows meaningful stacking. A first-generation, first-time buyer in Denver could potentially combine CHFA FirstGeneration ($25,000 deferred) with MetroDPA (6% forgivable) — layering state and metro assistance for a combined package that can cover down payment, closing costs, and prepaid expenses on homes well into the $500,000 range.
Even standard first-time buyers can combine CHFA FirstStep ($25,000 or 3%) with MetroDPA (6%), and adding a first responder discount or Homes for Heroes savings further reduces costs. The key is working with a lender who participates in both CHFA and MetroDPA programs and can structure the optimal combination.
Denver’s housing market requires larger down payments than most metros, but the assistance programs have scaled to match. The combination of CHFA’s $25,000 cap and MetroDPA’s 6% means that Colorado’s DPA programs are among the most dollar-valuable in the country.
For more on the Denver housing market, explore our housing market update and how much house you can afford in Denver guide.