Down Payment Assistance in Colorado: Grants, CHFA & Closing-Cost Help for Littleton Buyers
Bryan Messick
Published September 10, 2026
By Bryan Messick, Employing Broker, REALTOR®|September 10, 2026
The short version: You do not need 20% down to buy a home in Littleton. Colorado runs several down payment and closing cost assistance programs, and most first-time buyers in the southwest metro qualify for at least one of them. Some of the money is a grant you never pay back.
What down payment assistance is available in Colorado?
Colorado offers several down payment and closing cost assistance programs. CHFA (Colorado Housing and Finance Authority) provides a second mortgage equal to a percentage of your first loan, forgiven over a set period if you stay in the home. The Metro Mortgage Assistance Plus program offers a forgivable grant for buyers within participating city and county boundaries. Several Arapahoe, Jefferson, and Douglas County municipalities run their own grants. Most programs require you to be a first-time buyer, meet income limits, complete homebuyer education, and use the home as your primary residence.
The three main down payment assistance programs for Littleton buyers
1. CHFA Down Payment Assistance (statewide)
A second mortgage equal to a percentage of your first loan amount, usable for down payment and closing costs. Forgiven over a set period if you remain in the home. Requires a CHFA first mortgage, a minimum credit score, free online homebuyer education, and meeting income limits that vary by county and household size. This is the program most Littleton buyers end up using because it applies statewide.
2. Metro Mortgage Assistance Plus (city & county)
A grant for down payment and closing cost assistance available to qualified buyers purchasing within participating boundaries. The grant is forgivable and does not require monthly repayment. Income and purchase-price limits apply. Because it is boundary-specific, it may or may not cover a Littleton address — confirm before counting on it.
3. City & County DPA programs (Arapahoe, Jefferson, Douglas)
Several counties and municipalities across the southwest metro offer their own down payment or closing cost grants. Availability, amounts, and income limits differ by jurisdiction. Some are restricted to buyers within specific boundaries, and funds are often released in cycles — meaning a program that is open today may be waitlisted next month.
Program availability changes. Funding for city and county grants is released in cycles and can run out. Income limits and purchase-price caps are updated annually. Always confirm current program terms with your lender before relying on a specific assistance amount.
How to use down payment assistance in Littleton
Step 1 — Check your eligibility
Down payment assistance is usually for first-time buyers — defined as not owning a home in the past 3 years. Most programs set income limits by county and household size. The full DPA guide breaks down the income caps, and you can ask Bryan which programs you may fit.
Step 2 — Get pre-approved with a participating lender
DPA programs pair with specific first mortgages. Your lender confirms which programs work with your loan type (CHFA conventional, FHA, VA) and calculates the assistance you qualify for.
Step 3 — Complete homebuyer education
Most Colorado DPA programs require a homebuyer education course — often a free online class. The certificate is good for a set period and is submitted with your loan application.
Step 4 — Buy within program guidelines
Programs set purchase-price limits and require the home to be your primary residence. Narrow your search to Littleton-area homes that meet the program boundaries — ask Bryan if you need help confirming which listings qualify.
How DPA stacks with FHA, VA & conventional loans
Down payment assistance is not a standalone loan — it sits behind a first mortgage. Which first mortgage you use determines which assistance programs are available.
| Loan Type | Min. Down | Can Use DPA? | Notes |
|---|---|---|---|
| FHA | 3.5% | Yes | Accepts approved DPA and gift funds for down payment and closing costs. |
| Conventional (CHFA) | 3% | Yes | CHFA pairs its own DPA with a CHFA conventional first mortgage. |
| VA | 0% | Closing costs | No down payment needed. Some buyers use DPA for closing costs only. |
| Standard Conventional | 5% | Varies | Not every conventional lender accepts every DPA program. Confirm with your lender. |
How much down payment do you actually need in Colorado?
It depends on your loan. Conventional loans start at 3% down, FHA at 3.5% down, VA and USDA at 0% down for eligible buyers. Down payment assistance can cover part or all of that minimum, plus closing costs. The 20% number people repeat is the threshold to avoid mortgage insurance on a conventional loan — it is not a requirement to buy.
Which program fits your situation?
Down payment assistance rules change by program, county, and household size. The right match depends on your price range, target area, loan type, and household income. The full DPA guide covers each program's eligibility and limits in more detail. For help narrowing down which programs apply to your specific situation, ask Bryan.
Bryan Messick, REALTOR®, CRS | Colorado License #ER100000356 | Littleton, CO | 720-650-7648
Down payment assistance program details are summarized for education based on published program guidelines as of September 2026. Programs, income limits, purchase-price caps, and funding availability change periodically and may be suspended or modified without notice. I am not a mortgage lender and this is not a loan commitment or an offer to extend credit. Verify all terms directly with the program administrator and your lender. Equal Housing Opportunity.
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About Bryan Messick
Bryan Messick is a local real estate expert based in Littleton, serving clients throughout the Denver area. With a focus on education and modern technology, Bryan helps clients make confident decisions in any market.
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