Down Payment Assistance in Colorado | Jeff & Lane Morrell
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For Buyers

Down Payment
Assistance in Colorado.

Down payment assistance programs can help Colorado Springs and El Paso County buyers purchase a home with little money out of pocket. Several programs are currently available in Colorado, and the right one depends on your situation, your loan type, and your household income.

For 24 years, we've helped buyers across the Front Range use these programs to get into homes sooner and keep more cash in their pocket. Below is the current rundown, straight from the document we send to buyers who ask. Rest easy: we'll walk you through exactly what applies to you.

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The Programs

Colorado Down Payment Assistance Programs

01

CHFA Down Payment Assistance Grant

  • Provides up to the lesser of $25,000 or 3% of the first mortgage as a grant
  • Can be used for down payment or closing costs
  • Does not need to be repaid

Example: A $400,000 loan could qualify for roughly $12,000 in assistance.

02

CHFA Down Payment Assistance Second Mortgage

  • Provides up to the lesser of $25,000 or 4% of the first mortgage
  • Structured as a second mortgage with deferred repayment
  • Repayment typically occurs when the home is sold or refinanced
  • Buyers living with a permanent disability or first-generation homebuyers can access up to $25,000 regardless of the percentage
03

CHFA FirstStep / SmartStep Loan Programs

  • 30-year fixed mortgage programs offered through the Colorado Housing and Finance Authority
  • FirstStep pairs with FHA loans; SmartStep pairs with conventional loans
  • Can be combined with down payment assistance programs
  • Designed to help buyers qualify more easily
04

Pikes Peak Down Payment Assistance (El Paso County), formerly Turnkey Plus

  • The Turnkey Plus Mortgage Program is the same program; it is now branded as the Pikes Peak DPA
  • Available for homes anywhere in El Paso County
  • Provides up to about 5% of the loan amount toward down payment or closing costs
  • Structured as a 0% interest, 30-year deferred second mortgage
  • The first 50% is forgiven pro rata over the first five years (1/60th per month)
  • No first-time-buyer requirement; income limits apply
  • Hometown Heroes DPA: an additional 1% grant for buyers employed in specific professions such as teachers and first responders
05

USDA Zero-Down Loan Program

  • 0% down payment loan
  • Available in certain rural areas surrounding Colorado Springs
  • Lower mortgage insurance compared to many other loan types
06

FHA Loans with Down Payment Assistance

  • FHA loans allow 3.5% down payment
  • Can often be combined with state or local assistance programs
Important Note

Programs Change, So We Confirm the Latest for You

These programs often have income limits, credit requirements, and property eligibility rules. Many buyers also combine assistance programs with builder incentives or lender credits to reduce their total out-of-pocket costs. Please note that program availability and incentives change frequently, sometimes weekly, so it's always best to confirm the latest options.

For 2026, CHFA's income limits are roughly $130,400 for 1-2 person households and $149,960 for 3+ person households in non-targeted areas, with higher limits in targeted areas. Limits vary by county and are updated annually, so the exact numbers for your situation should always be confirmed with your lender.

Not Sure Which Program Fits?

Text us at 719-499-9394 or Book a free consultation

Jeff & Lane also help buyers combine assistance with builder incentives and lender credits to reduce their total out-of-pocket costs. We've got you.