metroDPA is a down payment help program run by the City and County of Denver for buyers along Colorado's Front Range. It's the other big program agents hear about next to CHFA, and buyers mix the two up all the time. They work alike in some ways: a 30-year fixed first mortgage, help through a zero-interest second, a credit floor, income limits and a homebuyer class. But they're separate programs with their own first mortgages, and you usually pick one. Here's how I teach agents to tell them apart and explain the choice.
The short answer
With metroDPA, a participating lender writes a 30-year fixed loan (FHA, VA, USDA or conventional). The buyer can add help equal to a percentage of the loan amount. The help is a zero-percent second mortgage with no scheduled payments. It can go toward the down payment, closing costs, prepaids or lowering the loan balance. There's no first-time buyer rule, repeat buyers are welcome, and the program site says it has no purchase price limit. Brian's posts describe the help as forgiven after the buyer stays in the home for a set time. Ask the lender for the current forgiveness and repayment terms. Start at metrodpa.org.
Step by step
- Qualify the buyer first. Credit, income, debts, savings. metroDPA has a credit floor that can vary by loan type. See how to qualify a buyer before the lender.
- Check the income limit. metroDPA posts its own income limits by county. The program site says its limits are the same for every household size. Don't quote a number. Check metrodpa.org.
- Check the address. The home must be an owner-occupied primary residence in an eligible area. The buyer must move in soon after closing.
- Book the homebuyer class. All borrowers on the loan must finish it.
- Find a metroDPA lender. Not every lender offers it. The program site has a contact form to find one.
- Compare with CHFA. Ask the lender to price metroDPA next to CHFA SmartStep or Preferred. See CHFA SmartStep and CHFA grant vs second mortgage.
- Pick one. Each program has its own first mortgage. Two second liens from two programs usually won't stack. The lender decides what can be combined.
metroDPA vs CHFA
| metroDPA | CHFA | |
|---|---|---|
| Who runs it | City and County of Denver | Colorado Housing and Finance Authority |
| Loans | FHA, VA, USDA, conventional | SmartStep (FHA, VA, USDA), Preferred (conventional), FirstStep (FHA) |
| First-time buyer rule | None | Depends on the program |
| Help | 0% second, no scheduled payments | Grant, or deferred 0% second |
| Repayment | Ask the lender; Brian's posts describe forgiveness after a set time in the home | Grant: none. Second: due on sale, refinance, payoff or move-out |
| Minimum buyer money | Program site says no minimum investment | CHFA requires a minimum contribution |
| Income limit | Program's own table by county | CHFA's tables by program and county |
| Class | Required | Required |
Rules change. Check current terms at metrodpa.org and chfainfo.com.
A worked example (illustration only)
A buyer's first mortgage is $350,000 through metroDPA. If the help were set at an assumed 5% of the loan, that's $17,500 toward the down payment and closing costs. If the help is forgiven after the required time in the home, the buyer never repays it. If they sell or refinance before then, they may owe some or all of it back.
Illustration only. A lender sets the real terms. The 5% figure is an assumption for the example. Taking help can change the first mortgage rate, and the full loan carries mortgage insurance, taxes, homeowners insurance and closing costs. The annual percentage rate (APR) would differ from any note rate. This is not an offer of credit. Program rules change. Check current rules at metrodpa.org.
How to explain it to your client
"There are two big down payment programs around Denver. One is CHFA, the state program. The other is metroDPA, run by the City of Denver. Both give you a 30-year fixed loan and help with your down payment. They have different rules on income, how much of your own money you bring, and when the help gets paid back or forgiven. You'll use one or the other, not both. A lender who does both will show you which one costs you less."
Watch-outs
- Don't say "Denver only." The program serves buyers across much of the Front Range. Check the address.
- Forgiveness has strings. Selling or refinancing early may mean repaying some or all of the help.
- One program at a time. Two second liens usually won't stack. Ask before you promise anything.
- Funds and terms change. Confirm the program is active and what it offers today.
- Lender match matters. A lender who doesn't offer metroDPA may say it doesn't fit. Find one who does.
- Fair housing. The program considers buyers without regard to protected traits. Talk about rules and homes only.
Further reading
- Down Payment Assistance for HUD Homes in Colorado on denver-hudhomes.com
- Denver Homebuyer Assistance Programs and HUD Purchases 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
Who runs metroDPA?
The City and County of Denver.
Do buyers have to be first-time buyers?
No. The program welcomes first-time and repeat buyers.
Can a buyer use metroDPA and CHFA together?
Usually not. Each has its own first mortgage. The lender confirms.
Is the help a grant?
It's set up as a zero-interest second with no scheduled payments. Brian's posts describe it as forgivable after a set time. Ask the lender for current terms.
Does metroDPA work on a HUD home?
It can, if the loan type fits the listing code. See the HUD $100 down incentive.
Where do I check the income limit?
On metrodpa.org.
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.