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Down Payment Assistance Programs (DPA) – Costs and Benefits

If first-time buyers need down payment help, they can consider applying for Colorado’s CHAC program. CHAC offers low interest, flexible loans for buyers in both the low-income and moderate-income brackets. The program helps qualified first-time homebuyers obtain a second mortgage that can be used for down payment and closing costs.

The CHAC loan will close at the same time as the first mortgage. This loan that must be repaid, usually through monthly payments, and it may be prepaid at any time without penalty.

Additional Requirements

Applicant income restrictions are based on the Area Median Income or AMI. In most areas of Colorado, applicant income may equal 80 percent of the AMI. In Arvada, it’s 100 percent of the AMI. In addition, borrowers contribute a minimum of $1000 to the transaction, or $750 in the disability program. This money must come from the borrower’s own funds. 

Remember this is a loan and it will be serviced by the Colorado Housing Assistance Corporation (CHAC). Before applying for CHAC down payment aid, the homebuyer must complete CHFA/CHAC-approved classes for first-time homebuyers. See for more information.

How Do You Apply for CHAC?

CHAC partners with your primary lender. You will apply for CHAC through your first mortgage lender. After you select your mortgage package and the property goes under contract, the primary lender will apply to CHAC on your behalf. Terms vary depending on the primary loan package. The terms of your CHAC down payment package could be different from other borrowers. Although CHAC will communicate with you through your lender, you are always welcome to call CHAC directly if you have questions.

Finalizing the CHAC Loan

After the CHAC loan is approved, you will need to sign several documents and legal disclosures. The details of your CHAC loan, including the amount, the terms, and the fees will be revealed on these documents. In addition, CHAC may request you to certify some information. Examples include:  

  • Proof that you have not owned interest in a principal residence for the past three years
  • Promise that you intend to occupy the new property as your primary residence
  • Certification that you do not own other residential property
  • Full disclosure of the income and assets of all persons who will be occupying the home
  • Proof of legal residency for all members of the household

The requested signed documents need to then be returned to CHAC. Then you will attend a borrower counseling session in person or via phone.

To help you find the best mortgage for you, contact Springs Home Mortgage. Contact Keith Courlas at 719-470-0898 to take your first step. Springs Home Mortgage, 5585 Erindale Drive Suite 201, Colorado Springs, CO 80918. 


(719) 470-0898