Colorado Down Payment Assistance Programs That Can Get You Into a Home With Less Out of Pocket

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 available in Colorado right now, and in 2026 the numbers are stronger than many buyers realize. Here is the current rundown, updated with the latest program details.

Buying a home without a big pile of cash in the bank is possible, and it doesn't mean stretching yourself thin. It means knowing which programs fit your situation. If you're just starting the process, begin with pre-approval so you know what you can actually afford, then read how the assistance below stacks with the loan programs available to you. There are no emergencies in real estate, and this is all going to work exactly as it's supposed to.

1. 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. That's real money that never has to be paid back.

2. 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

3. CHFA FirstStep / SmartStep Loan Programs

These are 30-year fixed mortgage programs offered through the Colorado Housing and Finance Authority. FirstStep pairs with FHA loans, while SmartStep pairs with conventional loans. Both can be combined with down payment assistance programs and are designed to help buyers qualify more easily.

4. Pikes Peak Down Payment Assistance (El Paso County), Formerly Turnkey Plus

The Pikes Peak Down Payment Assistance Program and the Turnkey Plus Mortgage Program are the same program. Turnkey Plus is now branded as Pikes Peak DPA, so don't worry if you've heard both names. Here is how it works:

• 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 adds an additional 1% grant for buyers employed in specific professions such as teachers and first responders

Because half the assistance is forgiven as you make payments, this program can quietly disappear over the first five years you own the home.

5. 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

6. FHA Loans with Down Payment Assistance

FHA loans allow a 3.5% down payment and can often be combined with state or local assistance programs. For many first-time buyers, FHA plus a CHFA or Pikes Peak grant is the combination that makes the math work.

The Important Note: Income Limits, Credit, and Timing

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 confirm the exact numbers for your situation with your lender. Your income may qualify you for more than you think.

If you want to see every program side by side, we keep a current rundown on our Down Payment Assistance in Colorado page, and our buying guide walks through the whole process from pre-approval to closing. The next step is simple: get pre-approved, then let's build the financing package that fits you.