Down payment assistance (DPA) can help eligible Colorado Springs buyers cover the down payment and/or closing costs that often stand between renting and owning. 719 Lending is a local broker that helps El Paso County buyers pair Colorado Housing and Finance Authority (CHFA) and other assistance with the right loan, then walks you through every step. Rated 4.9★ on Google. (NMLS #1601989, Equal Housing Lender.)
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What is down payment assistance?
Down payment assistance is help — usually from a state housing finance agency or local program — that puts money toward your down payment, your closing costs, or both. In Colorado, the most widely used source is CHFA, the Colorado Housing and Finance Authority. CHFA assistance is typically offered in one of two forms: a grant that does not have to be repaid, or a second mortgage (commonly at 0% interest) whose repayment is deferred until you sell, refinance, pay off the first mortgage, or the home is no longer your primary residence.
DPA does not replace your main loan — it works alongside it. You still take out a first mortgage (often FHA, VA, USDA, or conventional through a CHFA program), and the assistance layers on top to reduce the cash you need at closing. Assistance amounts are generally calculated as a percentage of your first mortgage up to a dollar cap, and those amounts, income limits, and program rules are set by CHFA and can change. Choosing a DPA option may affect your first mortgage interest rate; we will explain the trade-offs for your situation.
Down payment assistance in Colorado Springs & El Paso County
Colorado Springs home prices have climbed well above where they sat a decade ago, and for many local buyers the down payment — not the monthly payment — is the real hurdle. That is exactly the gap DPA is designed to close. CHFA programs are available statewide, including throughout El Paso County, Fountain, Monument, Falcon, Security-Widefield, and the surrounding area.
Because CHFA sets income limits by household size and county, and some programs add purchase-price caps, the right fit depends on your specific numbers. As a local broker, 719 Lending knows the Colorado Springs market and can check current CHFA limits against your income and target price before you fall in love with a house.
Benefits
- Less cash to close. DPA can cover your down payment, closing costs, or both, depending on the program.
- Pairs with major loan types. Assistance commonly layers on top of FHA, VA, USDA, or conventional first mortgages.
- Grant or deferred second mortgage options. A grant has no repayment; a second-mortgage option may carry 0% interest with repayment deferred until you sell, refinance, or pay off the first mortgage.
- Buy sooner. For some buyers, DPA can make a home purchase possible years earlier than waiting to save a full down payment.
- Homebuyer education included. The required CHFA class is low-cost and gives you a stronger footing as a first-time owner.
- Local guidance. 719 Lending handles the paperwork and coordinates the assistance with your first mortgage.
Eligibility & requirements
- First-time buyer focus — but not always required. Some CHFA first mortgages require first-time buyer status (generally, no ownership in the past three years), while others do not; buying in a federally targeted area can also waive the first-time requirement.
- Income limits. CHFA sets income limits by household size and county; these change periodically, so current figures must be verified.
- Purchase-price limits. Certain CHFA programs add county-level purchase-price caps; others do not.
- Credit and contribution. A qualifying credit score (commonly a 620 minimum mid-score) and a minimum borrower financial contribution (generally $1,000, which may be met with eligible gift funds) typically apply.
- Primary residence. The home must be your primary residence — investment properties are not eligible.
- Homebuyer education. CHFA requires borrowers to complete an approved homebuyer education course before closing.
The process in Colorado Springs
- Talk with 719 Lending. We review your income, credit, and goals and check current CHFA limits to see whether you may qualify.
- Get pre-approved. We pair you with a first mortgage (FHA, VA, USDA, or conventional) and the right assistance structure.
- Complete homebuyer education. You finish a CHFA-approved class and receive your certificate.
- Find your home and apply. Once you are under contract, we submit the loan with the DPA layered in.
- Close. The assistance is applied at closing, reducing the cash you bring to the table.
How DPA compares to other Colorado Springs loan options
Down payment assistance is not a loan type by itself — it sits on top of a first mortgage. To see what that first mortgage might be, compare the options below:
- First-time home buyer in Colorado Springs — the natural starting point for most DPA users.
- FHA loan in Colorado Springs — a common first mortgage to pair with assistance.
- Low down payment purchase options — other ways to reduce upfront cash.
- VA loan in Colorado Springs — for eligible veterans and service members.
- See all loan options.
Why Colorado Springs chooses 719 Lending
We are a local Colorado Springs brokerage, not an out-of-state call center. We know the El Paso County market, we shop multiple lenders and assistance programs to fit your situation, and we keep you informed at every step. See what neighbors say on our reviews page.
Down payment assistance FAQ
Do I have to be a first-time buyer to get down payment assistance in Colorado?
Not always. Some CHFA first mortgage programs require first-time buyer status — generally meaning you have not owned a home in the past three years — while others do not. Buying in a federally targeted area can also remove the first-time requirement. We can check which programs you may qualify for.
Does down payment assistance have to be repaid?
It depends on the option. A CHFA grant generally does not have to be repaid. A CHFA second-mortgage option may carry 0% interest, with repayment deferred until you sell, refinance, pay off the first mortgage, or stop using the home as your primary residence. We will explain the trade-offs for your situation.
Can I use down payment assistance with an FHA or VA loan in Colorado Springs?
Yes. CHFA assistance is designed to pair with major first mortgage types, commonly including FHA, VA, USDA, and conventional loans. The assistance layers on top of the first mortgage to reduce your cash to close.
Is there an income limit for CHFA down payment assistance?
Yes. CHFA sets income limits based on household size and county, and some programs add purchase-price caps. These figures change periodically, so 719 Lending verifies the current limits against your income and target price before you make an offer.
719 Lending, NMLS #1601989. Equal Housing Lender. This is not a commitment to lend; all loans are subject to credit approval and property appraisal. Down payment assistance is provided through third-party programs such as the Colorado Housing and Finance Authority (CHFA); 719 Lending does not administer these programs, and program terms, assistance amounts, income limits, purchase-price limits, fees, and eligibility rules are set by the program provider and are subject to change without notice. Choosing a down payment assistance option may affect the interest rate on your first mortgage. Homebuyer education and other conditions may apply. Figures and program details described here are current as of 2026 and subject to change; verify current CHFA terms before relying on them. Not all applicants will qualify.