Buying your first home in Aurora but not sure how to cover the down payment and closing costs? You are not alone. Many first-time buyers can qualify for help they do not even know exists. In this guide, you will learn how Colorado’s CHFA programs work, what the City of Aurora and Douglas County may offer, how assistance pairs with common loan types, and the exact steps and documents you need. Let’s dive in.

What first-time buyer help covers

Most first-time buyer assistance falls into a few buckets:

• Down payment assistance (DPA): Often a second mortgage, deferred loan, forgivable loan, or grant that helps with down payment and sometimes closing costs.
• First-mortgage programs: Designed for first-time buyers with competitive rates and underwriting.
• Homebuyer education: Many programs require an approved class before closing.
• Local programs: City, county, or nonprofit assistance that may be income- or geography-based.

DPA is usually recorded as a subordinate lien at closing. Some aid forgives after you live in the home for a set period. Others are repaid when you sell or refinance. A few require monthly payments. Your lender will explain the terms before you commit.

How CHFA works in Colorado

Colorado Housing and Finance Authority (CHFA) is the state’s primary source for first-time buyer mortgages paired with DPA. You access CHFA by working with a CHFA-approved lender. Most CHFA options require homebuyer education and have income, purchase price, and property requirements that vary by area and household size.

Pairing CHFA with loan types

• Conventional: You can pair DPA with a conventional loan if the program and lender allow it. If your down payment is under 20 percent, private mortgage insurance applies.
• FHA: DPA can help you meet FHA’s minimum down payment requirement. FHA has upfront and annual mortgage insurance. The DPA must meet FHA and lender rules.
• VA: Qualified veterans may use assistance for closing costs or a small down payment, subject to VA rules. Subordinate liens must fit VA and lender guidelines.
• USDA: For eligible rural properties and incomes, USDA allows some subordinate liens that meet strict rules. Confirm property eligibility and DPA terms early.

Aurora and Douglas County options

Beyond CHFA, the City of Aurora often administers homebuyer assistance funded by programs such as HOME or CDBG. Availability changes based on funding cycles, and many options have income limits and property location rules within Aurora city limits.

Douglas County can also offer resources or referrals. Because ZIP 80116 is in Douglas County, check whether county or regional programs are open to residents of 80116 and whether the home you want to purchase is within their service area. Program rules differ on whether eligibility is tied to where you live now, where you work, or where the property is located.

Your best move is to contact the City of Aurora’s housing office and Douglas County housing or human services, and speak with a CHFA-approved lender. They can confirm which programs are currently open and how they pair with your loan choice.

Who qualifies: common checks

Expect programs to review:

• First-time buyer status, commonly defined as no home ownership in the past three years.
• Household income and purchase price against program limits.
• Minimum credit score and debt-to-income guidelines set by the lender and program.
• Property type eligibility, such as single-family, condo, or manufactured home.
• Owner-occupancy requirement for your primary residence.
• Completion of an approved homebuyer education course before closing.

What DPA means for your payment

DPA lowers your cash to close. Your monthly payment depends on how the assistance is structured:

• Forgivable or deferred loans: Often no monthly payment, but repayment may be due at sale or refinance if not forgiven.
• Repayable second mortgages: Add a second monthly payment to your budget.

Conventional loans with low down payments usually include PMI. FHA loans include upfront and annual mortgage insurance. Some programs limit which fees DPA can cover and may cap seller credits. If you plan to refinance later, expect a subordination or payoff of the subordinate lien. For tax questions on forgiven debt, talk with a tax professional.

Step-by-step path in 80116 and Aurora

1. Research programs. Look at CHFA, City of Aurora offerings, Douglas County resources, and local nonprofits.

2. Complete homebuyer education if required. Doing this early removes a key condition.

3. Choose a CHFA-approved lender and get pre-approved. Ask which DPA options you qualify for and how they affect rate, payment, and timing.

4. Hire an agent who understands first-time buyer programs. Your agent should know program price limits and seller concession rules.

5. Apply for your loan and DPA together. Your lender will guide the paperwork and send it to the program administrator.

6. Go under contract. Share the executed contract with your lender and the DPA administrator. Include any needed program contingencies and realistic timelines.

7. Complete underwriting, appraisal, and title work. The title company prepares to record the subordinate lien at closing.

8. Close and record. Funds are disbursed and the DPA terms begin. Keep any documents related to forgiveness tracking or future subordination.

Document checklist

Bring these common items to speed up approval:

• Government photo ID and Social Security number for each borrower
• Last two years of W-2s and federal tax returns
• Recent 30-day pay stubs and employer contact information
• Two to three months of bank and asset statements
• Gift letters if you have gifted funds
• Rent payment history if requested
• Divorce decree, child support, or bankruptcy discharge papers if applicable
• Homeowner association documents if the property has an HOA
• Signed purchase contract once you are under contract
• Certificate of completion for any required homebuyer education

Timeline you can expect

• Pre-approval: about 1 to 7 days, depending on how ready your documents are.
• Appraisal: often 1 to 2 weeks from order.
• Processing and underwriting: commonly 2 to 4 weeks.
• Contract to close: many DPA deals need 30 to 60 days, based on program processing and file complexity.

Your lender can advise on realistic closing dates after reviewing your scenario and the specific program.

Offer strategy when using DPA

• Get pre-approved with the exact loan and DPA identified. This calms seller concerns about delays.
• Confirm property type and price fit program rules before you write an offer.
• Set a timeline that reflects DPA processing. Include any required contingencies.
• Share your lender’s contact with the listing agent for fast verification.
• Negotiate seller concessions within program caps, and use strong earnest money and clean terms to stay competitive.

Common pitfalls to avoid

• Applying for DPA late. Some programs need paperwork before contract or early in the process.
• Using a lender not approved for the program you want.
• Large, unexplained bank deposits or job changes during underwriting.
• Missing program caps on price or seller credits.
• Delayed responses to documentation requests that slow program approval.

Local pros who can help

• CHFA-approved lenders for current program overlays and exact income and price limits.
• City of Aurora housing staff for current program openings within city limits.
• Douglas County housing or human services for county-level assistance and referrals.
• HUD-approved housing counseling agencies for education and guidance on available aid.

Before you apply: quick disclaimer

Program rules, income and purchase price limits, funding availability, and timelines change frequently. Always confirm current eligibility and requirements with CHFA, the City of Aurora, Douglas County, a HUD-approved counselor, and your lender before you write an offer.

Ready to take the first step?

If you are considering a home in Aurora or you live in 80116 and want to understand your options, you do not have to figure it out alone. Get a clear plan, the right lender introductions, and a strategy that keeps your offer competitive. Connect with Kerri Dowling. Let Kerri be your guide.

FAQs

What is down payment assistance for Aurora buyers?

• It is funding that helps cover your down payment and sometimes closing costs. It is often a second mortgage, deferred loan, forgivable loan, or grant recorded at closing.

How do CHFA programs help first-time buyers?

• CHFA pairs a first mortgage with optional DPA, often with education and income limits. You must use a CHFA-approved lender and meet program guidelines.

Can I use DPA with FHA or conventional loans in Aurora?

• Yes, if the DPA and lender allow it. FHA includes mortgage insurance, and conventional loans may require PMI with low down payments.

Are City of Aurora programs only for homes in Aurora?

• Many city programs are tied to properties within Aurora city limits and may have income and location rules. Confirm the current boundaries and requirements.

I live in ZIP 80116. Can I still get help to buy in Aurora?

• Possibly. Check Douglas County resources and city or regional programs. Many programs are tied to where the property is located or your income, so verify with officials and your lender.

Will using DPA hurt my offer in a competitive market?

• Not if you present a strong pre-approval that names your loan and DPA source, set realistic timelines, and work with an experienced agent and lender.

What documents do I need to apply for assistance?

• Expect IDs, Social Security numbers, W-2s, tax returns, pay stubs, bank statements, gift letters, rental history, and proof of homebuyer education.

How long does a DPA purchase take to close?

• Many DPA transactions close in 30 to 60 days, depending on program processing, appraisal timing, and how quickly documents are provided.