Grant
Funds that generally do not require repayment when all program conditions are satisfied. Availability and requirements vary.
Arizona + Colorado DPA guide
Down payment assistance: understand the help and the tradeoffs.
A DPA program may reduce the cash needed at closing for an eligible buyer. The right comparison also looks at repayment, payment, mortgage insurance, future flexibility, and the complete cost of financing.
How assistance is structuredG F D R
The word assistance can describe very different obligations.
Forgivable second mortgage
A subordinate loan that may be forgiven over time if occupancy, ownership, and other conditions continue to be met.
Deferred-payment second
A subordinate loan with payments postponed until a specified event such as sale, refinance, payoff, or maturity.
Repayable second mortgage
A subordinate loan with repayment terms that should be included in the complete monthly and long-term cost comparison.
Eligibility conversation
Questions to answer before choosing a program.
- Where is the property and is that location eligible?
- Is first-time homebuyer status required?
- What income and purchase-price limits apply to the household and area?
- Which credit, debt-to-income, occupancy, and property rules apply?
- Is homebuyer education or housing counseling required?
- What happens to the assistance if you sell, refinance, rent the home, or pay off the first mortgage?
- How does the assisted first mortgage compare with other available financing?
Official state resourcesAZ CO
Start with current Arizona and Colorado information.
Arizona
Arizona Home Plus publishes current statewide program information and participating-lender requirements. Local programs may also be available through cities, counties, and housing organizations.
Visit Arizona Home Plus Arizona preapproval guideColorado
Colorado Housing and Finance Authority provides homebuyer education and information about CHFA first-mortgage and assistance options through participating lenders.
Visit CHFA Colorado preapproval guidePrograms change: Funding, rates, limits, terms, approved lenders, and eligibility requirements can change without notice. Official program guidance and the complete loan documents control.
Common questions
Helpful answers before you begin.
Is down payment assistance free money?
Not always. Assistance may be structured as a grant, forgivable second mortgage, deferred-payment loan, or repayable second mortgage. The repayment rules, interest, forgiveness period, and effect of selling or refinancing must be reviewed carefully.
Do I have to be a first-time homebuyer?
Some programs require first-time buyer status while others do not. The definition may also allow someone who has not owned a primary residence during a specified lookback period. Current program rules control.
Can assistance cover closing costs too?
Some programs may permit funds to be used toward eligible down payment or closing costs. The permitted use, amount, and required borrower contribution vary by program and loan type.
Does DPA always produce the lowest payment?
No. Assistance can solve an upfront-cash challenge, but the connected first mortgage, rate, mortgage insurance, second lien, fees, and future refinance flexibility all affect the complete cost. Compare the assisted and non-assisted scenarios side by side.
Let’s make it make sense
Your preapproval questions are welcome.
Share your goals, timing, and concerns. Aaron will help you understand the next practical step without pressure.