What is metroDPA?
Metro Down Payment Assistance (metroDPA) is sponsored by the City & County of Denver. It provides a home loan and down payment assistance to help people become homeowners in all of these Front Range cities and counties.(PDF, 243KB)
Who is eligible?
People who make up to $188,250 a year and have a credit score above 640 are eligible for a home loan and down payment assistance to purchase a home in these Front Range cities and counties.(PDF, 243KB)
If you or an ancestor lived in a qualifying neighborhood, you may also qualify for the metroDPA-Social Equity program, which provides $15,000 or $25,000 (depending on income) for a home purchase. Please use this map to see if you are eligible. If you lived in a BLUE or GREEN area between 2010-2022, you may qualify. If you or an ancestor lived in a YELLOW or GREEN area between 1938-2000, you may qualify. Proof of eligibility must be submitted by using this link to apply.
Do I have to live in Denver or buy a home in Denver to apply?
No. The metroDPA and metroDPA Social Equity programs are available to qualified applicants so long as the home they are purchasing is in any of these Front Range cities and counties.(PDF, 243KB)
How does the program work? How much can I get toward a down payment?
metroDPA: You can get a percentage of the home loan (first mortgage loan) amount for your down payment in the form of an interest-free, 3-year forgivable second mortgage – there are no scheduled payments and you don’t have to pay the assistance loan (second mortgage) back if you stay in the home for three years.
metroDPA Social Equity: If you are eligible and approved for the metroDPA Social Equity program, you may be eligible for $15,000 or $25,000 toward your down payment or closing costs. This benefit is interest-free and does not require repayment. You will also receive metroDPA’s lowest available interest rate for the type of home loan.
What other program requirements are there?
You must use a metroDPA-approved lender to obtain a 30-year fixed rate home loan (first mortgage) in order to receive down payment assistance. The mortgage may be an FHA, VA or USDA loan or a conventional loan and will be determined in cooperation with your lender.
What lenders can I work with?
metroDPA loans are available through approved lenders. Contact our team for referrals to trained professionals ready to assist you. Contact Diana firstname.lastname@example.org or at 720-673-3948 or Eva Sloate at email@example.com or at 720-673-3955.
What is a second mortgage?
The assistance loan is in the form of a second mortgage, which creates a lien on the property for a specific amount of time. In this case, the amount of time is three years after the date of closing on the home. The loan is forgiven over a three year period. You may sell or refinance your home before the end of the three years and only repay the unforgiven portion.
What does “forgivable” second mortgage mean?
Over the first three years (36 months) of ownership, the down payment assistance is forgiven 1/36th each month. After the third anniversary (36 months) of closing, you will not have to repay any portion of the assistance you received. If you sell or refinance before the 36 months is up, you must pay back the remaining portion of the loan.
Here is an example: A borrower received $10,000 in assistance and 28 months after closing they decide to refinance their home. They are going to owe back a portion of the assistance they received. Remember, the assistance is forgiven at 1/36th per month which means, in month 28 after closing, $7,777 of the $10,000 amount has been forgiven. So, the borrower will owe $2,223 when they refinance or sell their home.
How much assistance does this program offer?
metroDPA: A homeowner may receive a percentage of their home loan (first mortgage amount) based upon the loan product (FHA, VA, USDA or conventional). As an example, if a borrower was to purchase a home and their loan amount was $300,000, if they use the FHA loan product and receive 5% of down payment and closing cost assistance, the borrower would receive $15,000 to be used as down payment and closing cost assistance.
metroDPA Social Equity: A homeowner may receive $15,000 or $25,000 based upon their income level and HOST’s approval of their Social Equity application.
In either case, the homeowner must use a home loan (first mortgage loan) provided through the metroDPA program.
What can and can’t I use the assistance for?
The assistance may be used for the down payment required by FHA, Conventional, USDA and VA loans. The assistance may also be used for customary closing costs, pre-paids or principal reduction of the home loan. The assistance may not be used to pay the difference between the sales price and appraised value, any borrower’s debt, any portion of the realtor compensation or result in cash back to the homeowner(s).
Why did the City develop the metroDPA-Social Equity program?
The metroDPA-Social Equity program makes additional down payment assistance available to home buyers who have been impacted by geographic discrimination in homeownership opportunities.
This program helps the Denver Department of Housing Stability (HOST) work toward our Five-Year Strategic Plan goal of increasing homeownership for Black, Indigenous and People of Color (BIPOC) in Denver from 41% to 45% by 2026. The metroDPA-Social Equity program was initially designed to help residents who lived in areas that were historically targeted by discriminatory lending practices like redlining. In 2023, it was expanded to support households who were disadvantaged by limited access to educational opportunities. HOST is strongly committed to equity and utilizing data and programs to inform our work so that race is no longer a predictor of housing outcomes.
Promoting homeownership in our community can help build generational wealth, strengthen the Front Range, and bring stability to its residents.