Colorado Down Payment Assistance
Access up to $25,000 through CHFA grants and forgivable loans for Colorado homebuyers
Up to 3% Grant
CHFA offers grants up to $25,000 that never need to be repaid
Forgivable Loans
Up to 4% forgivable loans ($25,000 max) that don't require repayment if you stay
Two Organizations
CHFA and CHAC both offer programs for Colorado buyers
Colorado Down Payment Assistance Programs
Colorado homebuyers have access to down payment assistance through two primary organizations: the **Colorado Housing and Finance Authority (CHFA)** and the **Colorado Housing Assistance Corporation (CHAC)**.
The **Colorado Housing and Finance Authority (CHFA)** provides valuable assistance to first-time homebuyers through both **grants** and **forgivable second mortgage loans**. These programs make it easier for Colorado households with moderate and low incomes to purchase a home.
CHFA Down Payment Assistance Grant
Qualified borrowers can receive up to **3% of their first mortgage** (loan amount capped at **$25,000**) as a **grant**. Because this is a grant, you **do not have to repay** those funds—ever.
Up to 3% Grant
Maximum $25,000 based on your first mortgage amount
Never Repaid
This is a true grant—no repayment required under any circumstances
Can Combine with Your Own Funds
You can still contribute to your down payment even while receiving the grant
CHFA Second Mortgage Loan (Forgivable)
This program offers a **forgivable loan** of up to **4%** (**$25,000 maximum**) of your first mortgage. You only need to repay the loan balance if specific events occur, such as when your first mortgage is paid off, when you sell or refinance your house, or when you stop using the home as your primary residence.
Up to 4% Forgivable Loan
Maximum $25,000 based on your first mortgage amount
Forgiven If You Stay
No repayment needed as long as you keep the home as your primary residence
Repayment Only on Specific Events
Repaid only if you sell, refinance, pay off the first mortgage, or stop using as primary residence
CHFA Eligibility Requirements
- •First-time homebuyers – Haven't owned a home in the past 3 years
- •Use CHFA first mortgage – Must finance through a CHFA loan program
- •Meet credit score requirements – Minimum credit score varies by program
- •Income limits – Based on county and household size
- •Complete homebuyer education – Required approved course
The **Colorado Housing Assistance Corporation (CHAC)** is a nonprofit organization that offers down payment assistance and affordable loan programs to **low- to moderate-income** homebuyers in Colorado. CHAC's assistance is intended for first-time buyers.
Program Features
Second Mortgage Loan
Assistance comes as a second mortgage that must be repaid via monthly payments
Low to Moderate Income
Designed for buyers with income below area median
Borrower Contribution Required
Minimum 1% of home's sale price from your own funds (not a gift)
Homebuyer Education Required
Must complete approved homebuyer education course
Special Note for Disability Program Participants: If you're part of Colorado's disability program, the minimum contribution requirement is reduced to just $750 instead of 1% of the sale price.
Key Difference from CHFA:
Unlike CHFA's grant and forgivable loan options, CHAC's assistance is a traditional second mortgage with **monthly payments required**. However, it may be more accessible for some buyers who don't qualify for CHFA programs.
| Feature | CHFA Grant | CHFA Forgivable Loan | CHAC |
|---|---|---|---|
| Maximum Amount | Up to 3% ($25,000 max) | Up to 4% ($25,000 max) | Varies by program |
| Repayment | Never repaid | Forgiven if you stay | Monthly payments required |
| Monthly Payments | None | None | Yes |
| First Mortgage Requirement | Must use CHFA loan | Must use CHFA loan | Flexible |
| Borrower Contribution | Can contribute | Can contribute | 1% minimum required |
Choose Your Program
Decide whether CHFA or CHAC is the better fit for your situation. CHFA offers grants and forgivable loans but requires using their first mortgage. CHAC offers more flexibility but requires monthly payments.
Contact an Approved Lender
Work with a licensed Colorado mortgage broker (like us!) who participates in CHFA or CHAC programs and can guide you through the application process.
Complete Homebuyer Education
Take an approved homebuyer education course (required for both CHFA and CHAC programs). Available online or in-person.
Get Pre-Approved
Complete your mortgage pre-approval to confirm eligibility and determine how much assistance you qualify for.
Close on Your Colorado Home
The down payment assistance funds are applied at closing, reducing your out-of-pocket costs.
Ready to Access Colorado DPA?
Get pre-approved in 24 hours and discover how much down payment assistance you qualify for.
NMLS #1767357 • Licensed in Colorado • Free Consultation • No Obligation