Denver and Aurora down payment assistance programs, plus the county programs around them, can add money on top of what the state offers. They can also pause, change or run out of money without much warning. That's why my rule for agents is simple: every local program gets verified as funded and open before you mention a dollar amount to a buyer. Here's how I teach agents to find these programs, explain them, and layer them with CHFA or metroDPA without breaking the loan.
The short answer
Local help comes from cities, counties, housing authorities and nonprofits. It may be a grant, a forgivable loan, a deferred loan, or a low-rate loan. Many local programs use stricter rules than the state programs: income limits based on a percentage of the area median income, counting everyone in the household, asset limits, price caps, and specific areas. Some local programs can sit behind a CHFA or metroDPA loan. Others can't. The lender and every program involved have to approve the stack. Before you say anything, check that the program is funded right now.
The kinds of local programs you'll see
- City-run down payment help. Denver runs metroDPA. Aurora and other cities have run their own help through their housing offices.
- County programs. Counties around the metro have offered help in some years and not others.
- Income-restricted homes. Denver has run an affordable homeownership program for homes sold with income limits and resale rules. Brian's posts note household income and asset tests, and paperwork for every adult in the home.
- Nonprofit and community programs. Some offer low-rate seconds or grants with their own classes and rules.
- HUD's own help on HUD homes. The $100 down incentive and closing cost help in the bid. See the HUD $100 down incentive.
Step by step
- Start with the address. Programs are tied to where the home is, not where the buyer lives now. Look up the city and county for that address.
- Check the official site. Go to the city or county housing page. For Denver, start at denvergov.org and search for homebuyer help. For Aurora, start at auroragov.org and search for homeownership help. For statewide help, start at chfainfo.com.
- Confirm it's funded today. Call or email the program, or ask a lender who used it this month. "Is it open, and is there money right now?" Write down the date and who told you.
- Read the income rules. Many local programs use a percentage of the area median income and count the whole household. That's different from CHFA. See CHFA income and price limits.
- Check price caps and areas. Many local programs cap the purchase price or limit the area. CHFA's main programs may not.
- Pick the first mortgage first. CHFA, metroDPA or a regular loan. That choice decides what can stack behind it.
- Ask the lender about the stack. How many liens are allowed? What's the combined loan-to-value limit? Will each program sign off? Get the answer before the offer.
- Plan the timeline. Local programs may need their own approval and paperwork. Brian's posts warn that some programs only take applications at certain times. Tell the seller's side if closing could take longer.
A layering example (illustration only)
| Layer | Source | Example |
|---|---|---|
| First mortgage | CHFA or metroDPA participating lender | FHA loan |
| Main help | CHFA second, CHFA grant, or metroDPA help | Covers most of the down payment |
| Local help | City or county program, if allowed | Helps with closing costs |
| Seller credit | Negotiated in the offer | Covers part of closing costs |
| Buyer's money | Savings or gift | Program minimum, if any |
The lender decides if the local layer can sit behind the main help. Two repayable seconds from two programs often can't both be used.
Illustration only. A lender sets the real terms. Every program has its own rates, repayment rules, income limits, price caps and funding status, and extra liens can raise the total monthly cost. The annual percentage rate (APR) would differ from any note rate. This is not an offer of credit. Program rules change. Check current rules with each program and at chfainfo.com.
How to explain it to your client
"Besides the state programs, some cities and counties have their own help. It changes a lot, and sometimes the money runs out. So before I promise anything, I'm going to confirm it's open today. Then your lender will tell us if it can be added on top of the state program. If it can, it may cut your closing costs. If not, the state help is still a great option."
Watch-outs
- Funding runs out. Never quote a local program from memory. Verify it's funded before every buyer conversation.
- Stricter rules. Household income, asset tests and price caps are common. A buyer who fits CHFA may not fit the city program.
- Stacking breaks files. Two seconds that can't stack can kill a loan late. Get the lender's yes first.
- Timelines grow. Local approvals add days. Build that into the contract dates.
- Resale rules. Income-restricted homes can limit the future sale price and buyer. Make sure the buyer reads those documents.
- Fair housing. Some programs serve specific groups under their own rules. Describe each program's own rules and let the buyer decide. Never steer by neighborhood or who lives there.
Further reading
- How HUD Home Grants and Local Down Payment Assistance Pair With Denver HUD Purchases on denver-hudhomes.com
- Down Payment Assistance for HUD Homes in Colorado on denver-hudhomes.com
This is training for real estate agents. It isn't legal, tax or lending advice. A licensed loan officer sets loan terms. Check with your managing broker.
Questions
Does Denver have its own down payment help?
Denver runs metroDPA and has run other homebuyer programs. Check the city's site for what's open now.
Does Aurora have a program?
Aurora has offered help through its housing office. Confirm current status on the city's site.
Can local help stack with CHFA?
Sometimes. The lender and each program must approve it.
Why do local programs have different income rules?
Many use area median income and count the whole household. CHFA's tables work differently.
Can buyers use local help on a HUD home?
Often, if the loan type fits the listing code and the program allows it.
How do I know a program is still funded?
Ask the program or a lender who used it recently, and write down the date.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.