Buyer Programs · Colorado
Colorado Down Payment Assistance, Compared
Most Colorado buyers qualify for more than one of these. Picking the biggest number is usually the wrong move — here is how they actually differ.
Overview
The largest assistance number is not always the best deal.
A first-time buyer in the Denver metro who works for a school district can often qualify for four or five of these programs at once, and the differences between them are not obvious from the brochures. A CHFA grant is money you never repay but it buys you a slightly higher interest rate on the first mortgage. A CHFA second mortgage costs you nothing monthly but comes back at sale or refinance. CHFA Schools to Home offers by far the largest number — up to 25% of your first mortgage — and it is the one I most often talk people out of, because repayment includes a share of your home’s appreciation and that math turns ugly on a short hold. metroDPA scales with your loan size rather than capping at a flat figure, which makes it stronger on larger loans and weaker on small ones. And Homes to Heroes is not a state program at all — it is my own 1% lender credit, which means it stacks on top of any of these. The right answer depends on how long you plan to stay, how much your loan is, and whether the rate bump on the grant costs you more over time than the assistance is worth.
How to choose
The questions that actually decide it
- How long will you stay? Under five years, shared appreciation and deferred seconds get expensive.
- How large is the loan? Percentage-based help beats flat caps on bigger loans, and loses on small ones.
- Do you have cash, or do you need the rate? A grant costs you rate; a second costs you equity later.
- Are you first-generation? If neither you nor your parents have owned, FirstGeneration is usually the strongest option.
- Do you work for a school? Schools to Home is the biggest number and the one that needs the most scrutiny.
- Are you a first responder or teacher? Homes to Heroes stacks on top of whichever program you choose.
The programs
Five programs, and one lender credit
CHFA Down Payment Grant
Lesser of $25,000 or 3% of your first mortgage, never repaid — in exchange for a slightly higher rate. See CHFA assistance.
CHFA Second Mortgage
Lesser of $25,000 or 4% of your first mortgage. No monthly payment, repaid at sale, refinance or payoff.
CHFA FirstGeneration
$25,000 as a silent second for first-generation buyers. Former foster youth are exempt from the first-generation test. See the program.
CHFA Schools to Home
Up to 25% of your first mortgage for Colorado public school employees — with shared appreciation on the way out. Read the honest version.
metroDPA
Sponsored by the City and County of Denver, sized as a percentage of your first mortgage, and generally open to repeat buyers.
Homes to Heroes
My own 1% lender credit for first responders and teachers. Not a state program — it stacks. See Homes to Heroes.
Not sure which one fits you?
Tell me your county, your loan size and how long you plan to stay. I will run them side by side with real numbers. Call (303) 557-3846 or start online.
Colorado down payment assistance side by side
| Program | How much | Structure | Who qualifies | Watch out for |
|---|---|---|---|---|
| CHFA Down Payment Grant | Lesser of $25,000 or 3% of the first mortgage | Grant — never repaid | CHFA first-mortgage borrowers, statewide | Comes with a higher rate on the first mortgage |
| CHFA Second Mortgage | Lesser of $25,000 or 4% of the first mortgage | Deferred second, no monthly payment | CHFA first-mortgage borrowers, statewide | Repaid in full at sale, refinance or payoff |
| CHFA FirstGeneration | $25,000 | Silent second, deferred | Buyers whose parents never owned; former foster youth exempt | Documenting first-generation status takes time |
| CHFA Schools to Home | Up to 25% of the first mortgage | Deferred second with shared appreciation | Full-time Colorado preK–12 public school, district or charter employees | You repay the assistance plus a share of appreciation — poor fit on a short hold |
| metroDPA | A percentage of the first mortgage, by loan type | Assistance sponsored by the City and County of Denver | Front Range buyers within income and credit thresholds; generally no first-time requirement | Thresholds move — confirm current limits before you shop |
| Homes to Heroes | 1% lender credit | My credit toward closing costs, not a state program | First responders and teachers | None — it stacks on top of any program above |
Common questions about Colorado assistance
Which Colorado down payment assistance program gives the most money?
CHFA Schools to Home, by a wide margin — up to 25% of your first mortgage for Colorado public school employees. It is also the one that most often turns out to be the wrong choice, because repayment includes a share of your home’s appreciation. On a long hold it can be excellent. If you might sell in two or three years, run the numbers against a plain CHFA second before you commit.
Can I use CHFA and metroDPA together?
No — they are alternative sources of down payment assistance on the same loan, so you choose one. What does stack is my Homes to Heroes 1% lender credit, which is a lender credit rather than a state program and can sit on top of whichever assistance you use.
Do I have to be a first-time buyer to get down payment assistance in Colorado?
Not always. CHFA generally targets first-time buyers, though there are exceptions in targeted areas, and metroDPA is generally open to repeat buyers within its income and credit thresholds. If you have owned before, say so early — it narrows the list quickly.
Is a CHFA grant better than a CHFA second mortgage?
It depends on how long you keep the loan. The grant is never repaid but raises your interest rate, so you pay for it monthly for as long as you hold the mortgage. The second costs nothing monthly but is repaid at sale or refinance. Short hold favors the grant; long hold often favors the second. I calculate the crossover point for your actual numbers.