What down payment assistance programs can first-time buyers use in Colorado Springs?

Two programs cover most Colorado Springs buyers. El Paso County's Pikes Peak Down Payment Assistance offers up to 5% of the loan as a 0% second mortgage, with no first-time buyer requirement. The Colorado Housing and Finance Authority (CHFA) offers a grant or a second mortgage, paired with its own first mortgage. Both have income limits and work only through participating lenders. Before using either, it's worth knowing when the money has to be repaid, because selling or refinancing early can bring part of it due.

The main programs, side by side

*Amounts, income limits, and other program terms change, often every year, and funds can run out. Figures on this page marked with an asterisk were current as of October 2026. Check the latest with a participating lender or the program's own website (linked in Sources) before you rely on them.

Pikes Peak Down Payment Assistance (El Paso County)

El Paso County's program provides up to 5% of your loan amount as a second mortgage with no interest and no monthly payment. For example, on a $400,000 loan, that's up to $20,000. It works with FHA, VA, and USDA loans and with Freddie Mac's HFA Advantage conventional loan, all as a 30-year fixed-rate first mortgage.

There's no first-time buyer requirement and no maximum purchase price. The home has to be your primary residence. The county lists income limits of $178,920 for FHA, VA, and USDA loans and $92,560 for Freddie Mac loans,* along with debt-to-income limits tied to your credit score. Homebuyer education is encouraged for everyone and required for first-time buyers using the Freddie Mac option.

El Paso County also offers a "Hometown Heroes" grant: an extra 1% of your loan amount that doesn't have to be repaid, used together with the Pikes Peak program. It's for full-time K-12 school staff, first responders, and healthcare workers, and for veterans and active-duty service members (veterans provide a DD214; active-duty buyers provide a VA Certificate of Eligibility). The county lists it for the first 75 loans.* Ask a participating lender whether it's still available.

CHFA down payment assistance

CHFA offers two kinds of help, and both require one of its first mortgage loans:

• A grant of up to the lesser of $25,000 or 3% of your first mortgage. You never repay it.
• A second mortgage of up to the lesser of $25,000 or 4% of your first mortgage. You repay it when you sell, refinance, pay off the first mortgage, or the home stops being your primary residence.

CHFA notes that choosing assistance comes with a higher interest rate on the first mortgage. Buyers with a permanent disability and first-generation buyers can qualify for up to $25,000 regardless of the loan amount through specific programs.

When the help has to be repaid

This is the part buyers most often skip, and it matters most if you might move in a few years.

Pikes Peak Down Payment Assistance forgives half of the assistance gradually over the first five years, and the other half at 30 years (or when your first mortgage ends). If you sell, refinance, or move out before then, you repay whatever hasn't been forgiven. On $20,000 of assistance:

• Sell after 2 years: $4,000 forgiven, $16,000 repaid
• Sell after 5 years: $10,000 forgiven, $10,000 repaid
• Keep the home 30 years: all $20,000 forgiven

A CHFA second mortgage is repaid in full when you sell or refinance. A CHFA grant is never repaid.

Repayment usually comes out of your sale proceeds at closing, so it belongs on your net sheet before you list. I once had a seller who had used down payment assistance years earlier, and we accounted for paying it off in their numbers from the start. They had owned the home a long time and had plenty of equity, so it wasn't a problem. It's still better to know it's there than to discover it at the closing table.

As a rule of thumb, I recommend buying only if you expect to keep the home about five years. That timeline also happens to be when half of the county's assistance has been forgiven.

Income limits and other requirements

Each program has its own rules, and your lender confirms whether you qualify. As of June 15, 2026, CHFA's limits for El Paso County were as follows. CHFA updates these each year, so check the current limits before you apply.*

• Most CHFA programs (SmartStep, Preferred, HomeAccess, and others): income up to $178,920, regardless of household size. No purchase price limit.
• FirstStep and FirstGeneration: lower income limits ($127,800 for a household of one or two and $146,970 for three or more in most of the county), with a purchase price limit of $566,730. Targeted areas have higher limits.

Both programs also look at your credit score, your debt compared with your income, and whether the home will be your primary residence. Expect to complete a homebuyer education class for many of these options.

What about the City of Colorado Springs?

The City of Colorado Springs doesn't run its own down payment assistance program for individual buyers. Its housing work focuses on affordable housing development and home repair programs. The county's Pikes Peak program covers homes inside the city, so most Colorado Springs buyers look at the county program and CHFA.

Military buyers and veterans

If you're eligible for a VA loan, you may not need down payment assistance at all, because VA loans allow 0% down for eligible buyers. You'll still need cash for closing costs and reserves, and the Pikes Peak program can be paired with a VA loan. There's no program specific to Fort Carson or the other installations. The county's Hometown Heroes grant, while it's available, includes veterans and active-duty service members.

If you might PCS within a few years, look closely at repayment. Selling early under the county program means repaying the part that hasn't been forgiven. If you keep the home as a rental instead, it's no longer your primary residence, which can also trigger repayment. Ask the lender how your plans would be treated before you commit. See how FHA, conventional, and VA loans compare.

How assistance fits into buying a home

Assistance is arranged through your lender, not through the seller or your agent. It's worth choosing a participating lender early. Program rates change daily, and the lender reserves the program when you lock your loan. A mortgage pre-approval that already includes the program shows what you can afford with it.

Assistance can cover part of your down payment and closing costs, but you'll still want money of your own for the inspection, earnest money, and a cushion after you move in. See how much cash you need to buy a home and typical buyer closing costs.

A simple way to decide

• If you plan to stay at least five years and you qualify, assistance can help you buy sooner. Compare the county program and CHFA side by side with your lender.
• If you might move within a few years, weigh the repayment against waiting and saving more of your own money.
• If you're VA-eligible, compare a VA loan with no money down to any assistance option, counting the closing costs and the funding fee.
• If you're not sure you qualify, start with a participating lender and a homebuyer education class. Both are free or low cost and answer most of the questions.

What could change the answer

• Program terms, income limits, and purchase price limits change, often each year. CHFA updated its limits on June 15, 2026.
• County funds can run out, and extras like the Hometown Heroes grant are limited.
• Your loan type, credit score, and debt affect which programs you qualify for.
• Plans to rent out the home or move within a few years can trigger repayment.
• A higher interest rate that comes with some assistance can cost more over time than the help is worth. Your lender can show you both options.

When to talk with a professional

A participating lender is the right first call: they confirm which programs you qualify for, how each affects your rate and payment, and how repayment works. A HUD-approved housing counselor or homebuyer education class can walk you through the process at no or low cost. If you're weighing how assistance affects your taxes or long-term plans, a CPA or financial planner can help.

Sources

• El Paso County, Pikes Peak Down Payment Assistance (PPDPA)
• El Paso County, Hometown Heroes additional 1% assistance
• Pikes Peak Down Payment Assistance, Homebuyers
• Colorado Housing and Finance Authority, Down Payment Assistance
• Colorado Housing and Finance Authority, CHFA Income Limits, effective June 15, 2026
• U.S. Department of Veterans Affairs, VA purchase loan