Buying your first home in Aurora can feel out of reach when you think about the down payment. You are not alone. Many first-time buyers in Aurora and Adams County use assistance to bridge the gap and get the keys sooner. In this guide, you will learn what down payment help looks like, which programs commonly serve Aurora buyers, how to qualify, and the exact steps to get pre-approved with a local lender. Let’s dive in.
What down payment help means
Down payment assistance is money that helps cover your upfront costs to buy a home. It can reduce what you need to bring to closing and make your monthly payment more predictable. Programs follow clear rules that focus on first-time buyers, income limits, and owner-occupancy.
Grants
Grants are funds you do not repay. Some grants are forgiven right away, while others forgive over time if you live in the home for a set number of years. Grants are often limited by funding cycles and income thresholds.
Deferred or forgivable second mortgages
These are second liens that sit behind your main mortgage. They may charge little or no interest and can be forgiven if you meet occupancy rules for a period of time. If not forgiven, repayment can be due when you sell, refinance, or pay off the first mortgage.
Repayable second mortgages
This help functions like a small, low-interest loan for the down payment or closing costs. You repay it on a schedule set by the program. It lowers your cash to close but adds a small separate payment or a future payoff.
Closing cost help and low-down loans
You can also see closing cost credits from sellers or lender credits. These are not public assistance but they are part of a smart affordability plan. Low-down mortgage products like FHA, Fannie Mae HomeReady, and Freddie Mac Home Possible can pair with some assistance programs when rules allow.
Programs that serve Aurora buyers
Several organizations commonly support first-time buyers across the Denver metro, including Aurora and Adams County. Availability and rules change, so confirm details with each program sponsor or your lender before you make an offer.
Colorado Housing and Finance Authority (CHFA)
CHFA is a major statewide source of first mortgages paired with down payment assistance. You apply through participating lenders who know how to structure CHFA loans. Expect income and purchase price limits, a primary residence requirement, and a homebuyer education class before closing.
City of Aurora options
Aurora’s Housing and Community Development office periodically offers homebuyer assistance supported by federal and local funds. When active, these programs may provide grants or deferred loans for income-qualified buyers. Check current availability, income and price caps, education requirements, and application steps with the City of Aurora.
Adams County options
Adams County may operate homebuyer assistance targeted to low-to-moderate income households or local workforce buyers. Options vary based on funding and policy. If you plan to buy in unincorporated Adams County or a municipality within the county, contact the county’s housing or community development office to confirm eligibility and how to apply.
HUD-approved counseling and education
Many assistance programs require a HUD-approved class or one-on-one counseling before closing. Counseling helps you budget, organize documents, and understand program rules. Your counselor can also point you to currently funded local options.
Federal loan products you can pair
- FHA: Low down payment financing that can work with certain assistance sources when program rules are met.
- VA: Zero down for eligible veterans. Some local assistance may be used for closing costs subject to VA rules.
- USDA: Zero down in eligible rural areas. Address eligibility and subordinate liens must be checked.
- Conventional low-down programs: HomeReady and Home Possible often allow 3 percent down, plus approved assistance.
Who qualifies in Aurora
Eligibility varies by program, but you will see common themes:
- First-time buyer status: Often defined as no homeownership in the past 3 years. Some programs allow exceptions for veterans or special cases.
- Income limits: Tied to Area Median Income and household size. Grants often have tighter limits than broader loan-plus-assistance packages.
- Purchase price caps: Programs may set maximum home prices by property type or location.
- Occupancy: You must live in the home as your primary residence. Investment and vacation properties are typically ineligible.
- Property types: Single-family homes, townhomes, and many condos can qualify. Condos may need project approval.
- Credit and debt guidelines: FHA has historically allowed scores around 580 for 3.5 percent down when other criteria are met, while many conventional options start around 620. Lenders will review debt-to-income, employment history, and reserves.
How assistance pairs with your mortgage
Pairing the right first mortgage with assistance is key. A few practical rules:
- Use participating lenders: Many programs, including CHFA, require you to work with approved lenders who can close the assistance correctly.
- Follow loan-specific rules: FHA, conventional, VA, and USDA each have limits on how subordinate assistance works. Your lender will confirm which combinations they can close.
- Expect mortgage insurance: Low-down loans usually require mortgage insurance or guarantee fees. Assistance reduces cash to close but does not remove MI unless you meet a higher down payment threshold.
- Understand subordinate liens: A second lien can affect future refinancing and may have forgiveness or recapture clauses. Read the promissory note and program agreement.
- Plan for education: Many programs require a HUD-approved class or counseling certificate before final underwriting.
Step-by-step plan for Aurora first-time buyers
Follow this simple path to move from research to keys in hand:
- Educate yourself
- Take a HUD-approved homebuyer class serving Aurora or Adams County.
- Review CHFA, City of Aurora, and Adams County program pages or call to confirm what is currently funded.
- Choose experienced lenders
- Ask lenders if they regularly originate CHFA loans and have closed City of Aurora or Adams County assistance.
- Consider local credit unions or community banks that participate in these programs.
- Get pre-qualified or pre-approved
- Share IDs, recent pay stubs, W-2s, bank statements, and consent for a credit pull.
- Ask for scenario comparisons: cash to close with and without assistance, expected monthly payment including mortgage insurance, and any second-lien terms.
- Complete required education
- Finish your HUD-approved class early and keep the certificate for underwriting.
- Apply for assistance
- Some programs require a separate application and may have waitlists or funding cycles. Submit early in your search.
- Make an offer and close
- Confirm property eligibility, including condo project approval if needed.
- Coordinate timelines so the assistance approval aligns with your closing date.
Smart tips and common pitfalls
- Do not wait to check funding: Local grant dollars can run out. Confirm availability before you write an offer.
- Do not assume it is free money: Some help is a forgivable or deferred second lien. Know the conditions and occupancy period.
- Do not skip the class: Education is often required and helps you understand the full costs of ownership.
- Do not use a lender without program access: If a lender cannot close CHFA or local assistance, you may lose your spot or face delays.
- Do not ignore MI and payment impact: Assistance reduces cash to close, but monthly costs must still fit your budget.
What to expect during documentation
Prepare a clean file to speed up your approval:
- Photo ID and Social Security numbers for all borrowers
- Last 2 years of W-2s and tax returns as requested
- Recent pay stubs for 30 days and proof of other income
- Bank statements for the last 2–3 months
- Gift letters or documentation of the assistance source
- Employment verification and contact information
- Any court-ordered income like child support or alimony if used to qualify
Your next move
If you are planning a first home in Aurora or Adams County, your best move is to line up the right lender, complete the required education, and get your documents in order. With a strong pre-approval and a clear plan for assistance, you can shop with confidence and move quickly when the right home hits the market.
If you would like a local partner to help coordinate your lender conversations and navigate city and county options, reach out to Arlene Burgess. Let’s Connect — Schedule a Consultation.
FAQs
What is down payment assistance for Aurora first-time buyers?
- It is grant or loan support that covers part of your down payment or closing costs, often with income limits and a primary residence requirement.
Can CHFA pair with FHA or conventional loans in Aurora?
- Often yes, when you use a CHFA first mortgage and a participating lender who can structure the assistance within program rules.
Does using assistance raise my monthly payment?
- Assistance lowers cash to close. Your monthly payment may still include mortgage insurance on low-down loans, which your lender will estimate.
Are grants always free money in Adams County?
- Some are true grants or become forgivable over time, while others are deferred second liens that you repay when you sell, refinance, or after a set term.
What credit score do I need as a first-time buyer?
- It depends on the loan. FHA has historically allowed scores around 580 for 3.5 percent down when other factors align, and many conventional options start near 620.
Do I need a HUD-approved class to use assistance in Aurora?
- Many programs require a HUD-approved education course or counseling certificate before closing, so complete it early in your process.
