How to Start the Home Buying Process in Denver: Steps and Down Payment Help

"How do I even start?" is one of the most common questions I hear, and it's one of the most searched home-buying questions in Denver. The good news: there's a clear order to it, and there's more help available than most people realize.

Step 1: Take a free homebuyer education class

I recommend this before you even talk to a lender. The Colorado Housing and Finance Authority (CHFA) sponsors free homebuyer education in English and Spanish. Many assistance programs require a class anyway, so you might as well start here and learn the whole process up front.

Step 2: Get pre-approved, not just pre-qualified

A pre-approval means a lender has reviewed your income, credit, and assets. It tells you what you can borrow and shows sellers you're serious. Ask your lender two questions:

• What would my full monthly payment be, including taxes, insurance, and any HOA?
• Do I qualify for any down payment assistance programs?

Not every lender offers every program. Ask specifically.

Step 3: Know the assistance programs

Here are programs available to buyers in the Denver metro area. Rules and amounts change, so confirm current details with an approved lender.

CHFA down payment assistance (statewide)

• Grant: up to 3% of the first mortgage or $25,000, whichever is less. It doesn't have to be repaid.
• Second mortgage: up to 4% of the first mortgage or $25,000, whichever is less, at 0% interest, repaid when the first mortgage is paid off.
• Both options require at least $1,000 of your own money toward the purchase.
• CHFA works through a network of approved lenders, and income and purchase price limits apply.

CHFA FirstGeneration

• For buyers who have never owned a home and whose parents or guardians weren't homeowners. Buyers who grew up in foster care may also qualify.
• Up to $25,000 in down payment assistance as a deferred second mortgage, repaid when you sell or refinance.
• You'll sign an affidavit through your lender confirming eligibility.

MetroDPA

• Run by the City and County of Denver and available across participating Front Range communities.
• Assistance is a percentage of your loan amount, set up as a 30-year deferred second mortgage with no interest and no scheduled payments. Denver's example: a $300,000 FHA loan could receive about $15,000.
• The current income limit is up to $216,000 a year, with a credit score above 640.
• The assistance can't cover a gap between the sales price and the appraised value.

If you're buying inside Denver County, also ask about the Denver Advantage program.

Step 4: Decide what matters in a home

Make a short list of must-haves and nice-to-haves: size, layout, commute, budget, HOA or no HOA. Be honest about the payment you're comfortable with, not just the maximum you qualify for.

Step 5: Tour, offer, and negotiate

The Denver metro area had 4.76 months of inventory in September 2026, which the Denver Metro Association of Realtors® considers a balanced market. In practice, that means buyers are often negotiating for more than price. Seller-paid closing costs, repair credits, and rate buydowns are all on the table. Ask your agent to show you recent sales so your offer is based on data.

Step 6: Inspection, appraisal, and closing

Once you're under contract, the Colorado contract sets deadlines for inspection, appraisal, loan approval, and title review. Missing a deadline can cost you options, so keep a calendar and stay in close contact with your agent and lender.

Start with a plan, not a house

The buyers who feel the most confident are the ones who started with a plan. Take the class, talk to a lender, and find out which programs fit your situation before you fall in love with a house. If you have a question I didn't cover here, send it my way. It might become a future post.

Program details are from CHFA and the City and County of Denver at the time of writing and can change. I'm a licensed real estate agent, not a lender. Eligibility is determined by approved lenders and program administrators.