How Denver's Down Payment Assistance Programs Work and How to Stack Them
August is when fall buyers get serious. Here's what CHFA, METRO DPA, and Denver's OHC are actually offering right now — and how to combine them.
August is when fall buyers get serious. Here’s what CHFA, METRO DPA, and Denver’s OHC are actually offering right now — and how to combine them.
The spring bidding wars have cooled. For the first-time buyer who got outbid in April on a Green Valley Ranch townhome or decided to wait out the market, August is actually a reasonable moment to reconsider. Sellers are more negotiable. Competition is thinner. The math on renting versus buying, while still uncomfortable, is shifting.
The Denver metro median home price has been running in the mid-$500,000s for single-family homes, per DMAR’s most recent monthly reports. Attached homes and townhomes — the realistic entry point for buyers using assistance — trade meaningfully lower, in the $380,000s to $480,000s depending on neighborhood. The gap between what a buyer can save and what a conventional lender requires at closing is real and, frankly, demoralizing for households that are doing everything right. Down payment assistance programs exist specifically to close that gap, and several are funded right now. But funding isn’t infinite, year-end is approaching, and these programs are — if we’re being honest — poorly explained by the very agencies that run them.
This guide maps every active program a Denver-area first-time buyer should know about, explains how to combine them, and lays out how to apply without wasting time or accidentally blowing up your eligibility.
Income limits, assistance amounts, purchase price caps, and funding availability change. Treat the figures here as a working framework and verify current numbers directly with each agency using the contacts at the end.
The Four Programs That Matter in Denver Metro Right Now
CHFA FirstStep is the Colorado Housing and Finance Authority’s broadest first-mortgage program for first-time buyers. CHFA doesn’t lend to you directly — it works through a network of approved private lenders who originate CHFA-backed loans. FirstStep pairs a 30-year fixed first mortgage with a down payment assistance second mortgage. Your lender coordinates the entire transaction, including any assistance layering. You cannot go around them.
CHFA HomeAccess serves buyers with a permanent disability, or who have a dependent with one. If that applies to your household, HomeAccess is worth knowing about for one specific reason: it waives the standard three-year prior-ownership lookback. A lot of buyers assume a home they sold years ago permanently disqualifies them from first-time buyer programs. Under HomeAccess, it doesn’t. The disability eligibility requirement is specific — CHFA’s documentation spells out what qualifies — but if it applies, HomeAccess is often a cleaner path than the standard FirstStep process.
METRO DPA is a grant program. Grants do not have to be repaid. It’s administered through a consortium of Front Range housing authorities covering Denver, Aurora, Lakewood, Arvada, Westminster, Thornton, Englewood, Broomfield, Adams County, Jefferson County, and other participating jurisdictions. METRO DPA can be paired with several first mortgage types. Here’s the critical thing: it has historically exhausted its annual allocation mid-year. Whether it’s currently open or on pause is something only a lender or the administering authority can tell you on a given week. This is not a detail you can Google your way around.
Denver OHC (Office of Housing and Credit) runs programs available exclusively within Denver city and county limits. OHC operates several distinct assistance products depending on the funding cycle — some forgivable loans, some grants. The offerings shift based on federal HOME funds, CDBG allocations, and local budget decisions. In past cycles, OHC has maintained an explicit anti-displacement focus, prioritizing assistance in certain census tracts including parts of Globeville, Elyria-Swansea, and Westwood. Whether those geographic priorities are active in the current cycle requires a direct call to OHC. The city’s public-facing web pages regularly lag actual program status by weeks or months. I’ve seen buyers show up to a lender meeting armed with OHC information that was two funding cycles out of date.
Who Qualifies: Income Limits, Credit Scores, and the First-Time Buyer Rule
The questions buyers type into search engines are usually some version of the same three things: Do I make too much money? Is my credit score good enough? Does owning a home ten years ago disqualify me?
Income limits for CHFA and METRO DPA are set as a percentage of Area Median Income for the Denver-Aurora-Lakewood HUD Metro Statistical Area. Check the HUD income limits tool at huduser.gov for the current 2026 figure for your household size. In recent cycles, CHFA’s limits have been at or around 80% AMI for most programs, though some allow up to 100% or 115% AMI depending on the loan type and whether the property is in a targeted area. METRO DPA has used 80% AMI as a threshold for some tiers. OHC’s programs have been more restrictive — often 80% AMI or below for the deepest grants, up to 100–120% for secondary products.
Your lender runs the income calculation against current AMI figures. Knowing your gross household income before that conversation saves time and prevents surprises. The difference between qualifying and not can come down to whether a specific program uses 80% or 100% AMI as its ceiling, and whether income is calculated before or after deductions.
Credit score minimums vary more than most buyers expect. CHFA programs generally require a minimum 620 for most loan types. METRO DPA has in recent cycles required 640. OHC programs have typically required 620–640 depending on the specific product. The thresholds differ because they reflect the underlying loan type. CHFA programs can sit on top of FHA, VA, or USDA loans in addition to conventional, and FHA’s own minimum is 580 — though lenders often require higher. A 620 score may open one door and close another. This is exactly why talking to a lender before contacting any program directly matters. Lenders know which programs will work with your specific credit profile.
The first-time buyer rule is consistently misunderstood, and the misunderstanding usually works against buyers. Under the standard federal definition used by CHFA and most other programs, “first-time buyer” means you have not owned and occupied a primary residence in the past three years. If you owned a home, sold it in 2021, rented since, and are buying now in 2026, you likely qualify. CHFA HomeAccess waives this requirement entirely for buyers with a qualifying disability.
Some programs also waive the first-time buyer requirement for purchases in Targeted Areas — census tracts designated as low-income or with high minority populations. Denver has several qualifying tracts. A CHFA-approved lender can confirm whether a specific address falls within one. This matters because it opens eligibility for repeat buyers in specific neighborhoods who would otherwise be shut out of assistance entirely.
The DTI problem buyers miss: Adding a DPA second mortgage affects your debt-to-income ratio even when that second mortgage has a deferred or $0 monthly payment. Most lenders must disclose it in your qualifying DTI, and a high-balance second can push you over the 45–50% DTI ceiling that governs CHFA first mortgage approval. A grant doesn’t do this — it doesn’t appear as debt on the property. Understanding the difference before you commit to a program combination is more important than most buyers realize until they’re already deep in the process.
Grant, Forgivable Loan, or Second Mortgage — What You’re Actually Agreeing To
Three structures exist in the Denver assistance market, and they’re not interchangeable. The structure matters more than the dollar amount. More than buyers are typically told upfront.
A grant doesn’t need to be repaid under any circumstances once issued — regardless of when you sell, refinance, or move. METRO DPA is a grant. Grants stack most cleanly with other programs, and they don’t complicate your DTI calculation. The tradeoff is that grant funding is finite and competitive. When it’s gone, it’s gone.
A forgivable loan converts to a grant over time, but only if you stay in the home and meet the conditions. OHC has used forgivable structures in recent cycles with either cliff vesting or graduated vesting. Cliff vesting means nothing is forgiven until you reach the threshold year, at which point the entire balance disappears. Graduated vesting means a portion is forgiven annually.
Here’s the scenario buyers need to actually think through before signing: You receive $20,000 from an OHC forgivable loan program on a five-year cliff vest. You sell in year three because your family situation changes or a job relocation comes up. At closing, you owe the full $20,000 back. Not a prorated portion — the full balance, because you didn’t reach the forgiveness threshold. That money comes out of your sale proceeds. Repayment is also triggered by transfer of title, cash-out refinance, or the moment you stop occupying the home as your primary residence. Converting the property to a rental triggers repayment even if you haven’t sold. Read the program agreement with this scenario in mind. Many buyers don’t understand the mechanics until they’re already obligated.
A second mortgage (sometimes called a deferred payment loan or silent second) is straightforward debt. It sits behind your first mortgage, accrues little or no interest, and becomes due on sale or refinance. CHFA’s own DPA product has used this structure. No monthly payments, but it is real debt on the property. It affects your DTI, it shows up in title searches, and it must be paid off when you sell.
If you’re choosing between a smaller grant and a larger second mortgage, take the grant. The absence of a repayment obligation and the cleaner DTI calculation aren’t close calls. More money sounds better until you run the math on what that second mortgage costs you when life doesn’t go as planned. For a fuller picture of what buyers are typically on the hook for at the table, closing costs for Colorado home buyers in 2026 are worth reviewing before you finalize your budget.
The Stacking Question: How to Combine CHFA With a Denver City Program
Most guides either stop here entirely or retreat into vague language about consulting a professional. Let’s try to do better.
Every mortgage on a property has a lien position. Your first mortgage sits in first position. If you default and the property sells at auction, the first mortgage lender gets paid first. A DPA second mortgage sits behind it and gets paid after. Any additional assistance sits in third position — or is structured as a grant, which carries no lien at all.
The constraint is lien position agreement. Your first mortgage lender must agree to allow a second lien on the property. CHFA-backed loans are designed to accommodate CHFA’s own DPA second. But when you want to add a city program — say, an OHC forgivable loan on top of a CHFA first mortgage and CHFA DPA second — you’re asking for a third lien. Some lenders will allow it; some won’t. The OHC loan must be subordinated to both other mortgages, meaning OHC agrees in writing to be paid last if the property sells or forecloses. OHC has done this in past cycles. But it requires explicit subordination agreements from all parties before you’re under contract.
Two combinations that have been permitted in recent cycles (verify current rules before acting):
Combination 1: CHFA FirstStep first mortgage + CHFA DPA second + OHC forgivable loan in subordinate position. This layers state first mortgage financing, state DPA, and city assistance. The OHC forgivable loan sits in third position, subordinated to CHFA. This requires a CHFA-approved lender willing to work with OHC, active OHC program funds, and sign-off from all three entities on the lien structure before closing. It’s genuinely more complicated than a standard purchase, which is why lender experience matters so much here.
Combination 2: CHFA first mortgage + METRO DPA grant. Because METRO DPA is a grant with no lien, this is straightforward. No lien position dispute. The grant is issued at closing and doesn’t appear as debt on the property. This is one of the cleaner arrangements available in the market, assuming METRO DPA has funds.
What the math looks like in practice: On a starter home in Montbello or Green Valley Ranch in the $380,000–$480,000 range, the gap between a buyer’s savings and what’s needed at closing can easily reach $20,000–$30,000 or more depending on loan type and seller concessions. A METRO DPA grant combined with an OHC forgivable loan, if both are active and the buyer qualifies, can close most or all of that gap. Specific dollar amounts depend on current program terms — confirm figures with a CHFA-approved lender and OHC directly before running your own math.
The lender who coordinates this matters enormously. Not all lenders have done it before, and you can tell quickly which ones have. If subordination agreements aren’t in place before closing, the entire stack falls apart. Ask any prospective lender directly whether they’ve closed transactions using the specific combination you’re pursuing. Ask for a reference if they hesitate.
The Neighborhood Factor: Which Programs Work Where
Geography shapes your options more than most buyers realize, because program availability isn’t uniform across the metro.
OHC programs are available only within Denver city and county limits. That boundary runs through the middle of what buyers think of as “Denver.” Commerce City is not Denver. Aurora is not Denver. Lakewood is not Denver. If you’re purchasing in those areas — even in zip codes that share Denver’s name colloquially — you’re not eligible for OHC assistance. The city line matters, and it’s worth looking it up on a map before you fall in love with a specific property.
Within city limits, OHC has in past funding cycles maintained geographic priorities tied to anti-displacement goals. Certain census tracts have received priority consideration because of gentrification pressure and the city’s obligations under federally funded community development programs. Those tracts include portions of Globeville, Elyria-Swansea, and Westwood. Whether those priorities are formally active in the current cycle requires a direct inquiry to OHC. The program documentation on denvergov.org tends to reflect prior-cycle terms that have since been superseded.
The neighborhoods where first-time buyers using assistance most commonly land — Montbello, Green Valley Ranch, Westwood, parts of Globeville and Elyria-Swansea — reflect a combination of factors: attached or smaller single-family homes below program purchase price caps, and enough seller flexibility to make deals work with assistance in the mix.
For buyers looking just outside city limits, the picture shifts. Aurora has its own programs through the Aurora Housing Authority. Jefferson County and Lakewood buyers may have access to Jefferson County’s own DPA offerings. Buyers in unincorporated Adams County should contact the Adams County Housing Authority. CHFA and METRO DPA cover this broader geography, but the OHC layer disappears entirely. Buyers weighing specific suburbs should consult our comparison of Denver suburban home-buying options in Aurora, Lakewood, Arvada, and Thornton for context on how those markets and local programs differ. A housing counselor at Brothers Redevelopment — a HUD-approved nonprofit that provides homebuyer education throughout the metro — puts it plainly: buyers who find a house they love in Aurora and assume Denver’s city programs will follow them there are in for a disappointment. They need to start over figuring out what Aurora or Adams County has available. It happens more than you’d think.
How to Apply and the Sequencing Most Buyers Get Wrong
The correct order of operations for a Denver first-time buyer using down payment assistance is not obvious. Getting it wrong wastes weeks or, worse, derails deals when you’re already under contract.
Step 1: Complete HUD-approved homebuyer education. Several CHFA programs require a HUD-approved homebuyer education certificate before you can close — some before the loan application is even submitted. Brothers Redevelopment (brothersredevelopment.org) offers in-person and virtual sessions in Denver and is widely recognized locally. CHFA also accepts its own online course. Complete this first, because it cannot be completed retroactively after you’re under contract. It takes a few hours and costs little or nothing. Do it early.
Step 2: Run your own income check. Before you talk to a lender, know your gross household income and your approximate credit score. Go to huduser.gov, find the income limits tool, and look up the Denver-Aurora-Lakewood MSA for 2026. Compare your household income against AMI thresholds for your household size. This gives you a preliminary read on which programs you’re likely to qualify for and prevents wasted conversations.
Step 3: Get pre-approved with a CHFA-approved lender. Find one through chfainfo.com. This is where your eligibility for specific programs gets confirmed, where your DTI is calculated, and where the lender assesses which combinations are feasible. The lender coordinates program reservations, subordination agreements, and fund requests. Choosing a lender with DPA experience specifically — not just general purchase experience — is worth the extra time spent vetting. Ask directly: how many DPA transactions have you closed this year? What combinations have you done?
Step 4: Check OHC status if buying in city limits. After you have a lender aligned, contact OHC to ask what programs are currently funded, whether there’s a waitlist, and what the intake process looks like. Some OHC programs require you to apply before making an offer; others can be added after a ratified contract. The timing varies by cycle and affects your offer strategy. Don’t assume you can sort this out after you find a house.
Step 5: Have the lender check METRO DPA status. A participating lender can check in real time whether funds are available. It takes a phone call. Buyers who skip this sometimes discover mid-transaction that the program they were counting on is closed for the year — an awful thing to learn when you’re already in contract.
The critical mistake is contacting programs before you have a lender, or making an offer before your eligibility is confirmed. OHC will often tell callers to work through a lender anyway. CHFA can’t reserve funds without a lender-initiated request. Calling programs cold before you’re aligned with a lender mostly generates confusion and sometimes flat-out wrong information about eligibility. It feels productive. It isn’t.
These Programs Run Out — What That Means for August Buyers
Down payment assistance funding is not a tap that runs continuously. It’s an allocation that depletes.
METRO DPA has historically exhausted its annual allocation mid-year. Whether it’s been replenished by August 2026, and how much remains, is information only a participating lender or the administering authority can confirm. Calling in August to ask about METRO DPA status is not premature. It’s essential.
OHC programs run on the city’s fiscal year and on federal grant cycles that don’t align with calendar years. When a funding round is exhausted, OHC opens a waitlist. A waitlist position is not a guarantee of funds — it’s a place in line for the next allocation. If that allocation comes in late fall or winter, a buyer who applied in August might close in early 2027. That timeline affects your purchase contract, your rate lock, and your seller’s patience. Real variables, not hypotheticals.
What this means for August buyers: some programs you’ve read about may already be closed for 2026. The only way to know is to ask. Fall buyers who start in August are competing with fewer buyers than they would have in March, and they may have access to year-end funding that would otherwise go unused. August is a genuinely useful entry point — not because the programs are better, but because the competition for both homes and assistance dollars is thinner. For a broader look at what to expect as a first-time buyer in this market, our moving to Denver coverage addresses the full landscape of considerations beyond assistance programs alone.
Verify Before You Act on Anything in This Guide
Program terms change. Purchase price caps are adjusted. AMI limits update annually. Funding runs out. The framework here reflects conditions as of mid-2026, but specific numbers require direct verification before any financial decision.
Current AMI limits. Go to huduser.gov and look up the 2026 effective income limits for the Denver-Aurora-Lakewood HUD MSA. Check the limits for your household size. Note whether the program you’re targeting uses 80%, 100%, or another percentage of AMI.
CHFA program terms and purchase price caps. Visit chfainfo.com or contact CHFA through the lender directory. Ask specifically about current purchase price limits for the county where you’re buying, and current DPA second mortgage amounts. These are adjusted periodically and vary by county.
METRO DPA funding status. Ask a participating lender to confirm whether funds are currently available and what the current grant amount is. Do not assume based on what you read online. This changes week to week.
OHC active program names and waitlist status. Go to denvergov.org/OHC or call OHC directly. Ask which programs are accepting applications this cycle, what the waitlist situation is, and what the income limits and assistance amounts actually are. Do not rely on the web page alone.
Permitted combinations. Ask your CHFA loan officer and OHC staff simultaneously which combinations are permitted right now, and whether the specific programs you’re targeting can be layered. Get the answer in an email recap, so there’s no misunderstanding when you’re 30 days into a transaction.
Local resources:
Brothers Redevelopment — HUD-approved homebuyer education, metro Denver: brothersredevelopment.org
CHFA lender directory: chfainfo.com/homebuyers
Denver OHC: denvergov.org/OHC
DMAR market data: dmar.org
The programs to close the gap between what first-time buyers in Denver can save and what they need at closing exist, are funded right now, and can be combined in ways that most buyers don’t know about until they’re already working with someone who has done it before. That’s the actual problem — not the programs themselves, but the opacity around how they work and in what order to approach them. Use this guide to orient yourself. Then pick up the phone and verify.
