Two down payment programs can look almost identical at first glance.
One offers more money. The other may leave you in a much better position.
That’s why I don’t like picking a down payment assistance program based on the headline number alone.
The biggest assistance amount is not automatically the best option. You have to compare what it costs, how it affects qualification, what you owe later, and how much cash you still need at closing.
CHFA Is One Option, Not the Default
CHFA is a legitimate option, and it’s probably the one most Colorado buyers have heard of first.
But it’s not the only one.
Depending on where you’re buying and what you qualify for, assistance can come from state programs, city or county programs, nonprofits, or lender-specific options.
Some are grants. Some are second mortgages. Some are deferred. Some have monthly payments.
They also don’t all work with the same credit scores, income limits, loan types, or borrower profiles.
So instead of asking, “Which program is best?” ask, “Which one fits my numbers best?”
What to Compare
What you get
Total assistance amount. Look at actual dollars, not just percentages.
Grant vs. second mortgage. A grant doesn’t need repayment. A second mortgage is still a loan.
Forgivable vs. repayable. Some programs forgive assistance over time. Others never do.
What it costs
Silent/deferred vs. monthly-payment second. A deferred second has no payment today. A repayment-required second does.
Interest rate and first-mortgage pricing. Ask what your first-mortgage rate and fees look like with the assistance and without it.
Whether you qualify
Minimum credit score and income limits
First-time-buyer requirements
Borrower contribution and reserve requirements
Non-occupant co-borrower rules
Occupancy requirements
That non-occupant co-borrower rule matters more than people realize. If a parent plans to help you qualify, one program may allow it while another may not.
How it hits your numbers
Cash-to-close impact. Assistance only solves the problem if it covers what you’re actually short on.
DTI impact. If the second mortgage has a monthly payment, that payment can affect your debt-to-income ratio.
What you owe later
Repayment triggers. Sale, refinance, paying off the first mortgage, or moving out can all matter depending on the program.
Some programs also have early-payoff rules.
Two Examples
CHFA
CHFA offers a grant up to the lesser of $25,000 or 3% of the first mortgage, or a second mortgage up to the lesser of $25,000 or 4%. You can’t use both.
FirstStep pairs with an FHA loan and offers the second-mortgage option only. It’s zero percent, has no monthly payment, and is repaid when you sell, refinance, or stop living in the home.
For Denver County, the non-targeted income limit is $144,000 for one- or two-person households and $165,600 for three or more.
It also requires a 620 middle credit score, first-time-buyer status with some exceptions, a $1,000 contribution that can be a gift, and a homebuyer class.
It does not allow cosigners or non-occupant co-borrowers.
metroDPA
metroDPA is a separate program. It is not a CHFA product, and not every lender offers it.
Denver’s housing department describes the assistance as a second mortgage with no interest and no monthly payments, repaid when the first mortgage is paid off.
The amount is based on a percentage of the loan, but the percentage, income limits, and program rules can vary by lender, loan type, and county.
Published program guides show no first-time-buyer requirement and require occupancy within 60 days of closing.
That’s why I always recommend asking your lender which version they actually offer instead of assuming the rules are the same everywhere.
On a $400,000 loan, CHFA’s second could be up to $16,000.
Another program may offer more or less.
That doesn’t automatically make it better.
When the Bigger Number Loses
Here’s where people get tripped up.
A program can offer more assistance and still be the worse fit.
For example:
A larger second mortgage has a monthly payment, and that payment pushes your DTI too high.
A program gives you more money upfront but comes with a higher first-mortgage rate that costs you more every month.
The assistance covers the down payment, but you’re still short on closing costs.
You plan to move or refinance in a few years, and the repayment terms matter more than the upfront amount.
That’s why the “biggest check” is not the question I care about most.
Other Places to Look
CHFA and metroDPA are only two examples.
Depending on the property and borrower, assistance may also come from city or county housing programs, nonprofits, or individual lenders.
Program terms change. Funding can also change.
So confirm the current rules before you count on any of it.
What to Do First
1. Ask for a side-by-side.
Compare each program you may qualify for based on assistance amount, repayment, payment, and cash to close.
2. Compare three numbers.
Monthly payment, cash to close, and what you’ll owe later.
3. Check the loan type.
Some programs pair with specific loan types, so compare FHA vs. conventional too.
4. Line up your contribution early.
If a gift is allowed, learn the gift rules before closing.
The Better Question
Instead of asking:
“What’s the biggest down payment program I can get?”
Ask:
“Which program gives me the best payment, the least cash needed at closing, and the fewest surprises later?”
That’s the comparison that actually matters.
FAQ
Is down payment assistance free money?
Sometimes. Some grants don’t require repayment. Many other programs use a second mortgage that is repaid later.
Can I use more than one program?
Sometimes, but stacking rules vary. Don’t assume two programs can automatically be combined.
Does assistance change my interest rate?
It can. Some programs come with different first-mortgage pricing, so compare rates with and without the assistance.
Do I need to be a first-time buyer?
Not always. It depends on the program.
About Jennifer
Jennifer Chicano, CMA™, is Your Loan Chic — a Certified Mortgage Advisor™ and mortgage broker helping buyers make informed mortgage decisions. NMLS #1194079 | Zero Point Mortgage Services NMLS #1216108.
Not sure which down payment option fits your numbers? I’ll walk you through how the programs compare.
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Information is for educational purposes only and is not a commitment to lend or financial advice. Program terms, income and purchase price limits, eligibility requirements and availability change and vary by borrower, lender, loan program and county. Information is current as of October 2026. Examples are for illustration only. All loans are subject to credit approval, program guidelines and underwriting requirements.
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