The short answer: the first-time home buyer programs in Colorado Springs, CO that matter most right now are CHFA's statewide down payment assistance and El Paso County's own Pikes Peak Down Payment Assistance program (PPDPA), which together can hand you thousands of dollars toward your down payment that you never have to pay back. I spend most of my days working with buyers out on the Eastern Plains and across the Denver Metro, but I get asked about Colorado Springs often enough, usually from families cross-shopping El Paso County against Elbert County or Douglas County, that I wanted to lay it all out plainly. PPDPA alone can provide up to 5% of your loan as a forgivable second mortgage, and CHFA's grant can add up to $25,000 more. None of this is complicated once you see it laid out, so let's walk through it.
Here's what's actually on the table for first-time buyers in Colorado Springs and El Paso County:
- CHFA FirstStep and FirstGeneration Plus first mortgage loans
- CHFA's Down Payment Assistance Grant (up to $25,000, no repayment required)
- Pikes Peak Down Payment Assistance, PPDPA, the county's own forgivable loan program
- The Hometown Heroes bonus grant layered on top of PPDPA
- A reminder that the City of Colorado Springs doesn't run its own direct assistance program, so CHFA and PPDPA are really where the help lives
What First-Time Home Buyer Programs Are Available in Colorado Springs, CO?
Most of the real help for first-time buyers here comes from two places: the Colorado Housing and Finance Authority (CHFA) at the state level, and the Pikes Peak Down Payment Assistance program at the county level. CHFA works through participating lenders statewide and pairs a first mortgage with optional down payment help. PPDPA is specific to El Paso County and works for homes anywhere in the county, including the city itself.
The nice part is these aren't either-or. Depending on your loan type and household income, you may be able to combine CHFA's grant with PPDPA's forgivable loan to cover a meaningful chunk of what you'd otherwise need in cash at closing.
How Does CHFA Help First-Time Buyers in El Paso County?
Income and Price Limits
CHFA's FirstStep Plus and FirstGeneration Plus programs have income and purchase price limits that reset periodically. As of the limits effective June 15, 2026, in El Paso County the income cap is $127,800 for a one to two person household and $146,970 for three or more, with a purchase price cap of $566,730. In targeted areas those numbers rise to $153,360 or $178,920 in income and a $692,670 price cap (Colorado Housing and Finance Authority).
The Down Payment Assistance Grant
CHFA also offers a Down Payment Assistance Grant of up to $25,000 or 3% of your loan amount, whichever is less, and you don't pay it back (ConsumerAffairs, October 2026). It's grant money, not a second loan, which is a distinction worth understanding before you assume every dollar of help comes with strings attached.
What Is the Pikes Peak Down Payment Assistance Program?
PPDPA is El Paso County's own down payment assistance program, open to anyone buying a home anywhere in the county, including the City of Colorado Springs. Qualified buyers can receive up to 5% of their loan as a soft second mortgage at 0% interest, and it's fully forgivable after 30 years (El Paso County Administration).
Here's the part that surprises people: because this isn't a bond program, there's no first-time buyer requirement, and you don't run into federal recapture tax. Income limits are $178,920 for government loan products and $92,560 for Freddie Mac products, and there's no maximum purchase price (El Paso County Administration).
Hometown Heroes Bonus
Under the Hometown Heroes program, eligible borrowers stack their first mortgage and standard PPDPA assistance with an additional 1% of the loan amount as a non-repayable grant, as long as it's used alongside the PPDPA first mortgage (El Paso County Administration).
Since PPDPA launched in 2013, county officials say it has assisted more than 2,800 families and supplied more than $23 million in down payment assistance (El Paso County officials, citizenportal.ai).
Does the City of Colorado Springs Offer Its Own Down Payment Assistance?
No, it doesn't. The city's housing department puts its energy into affordable housing development rather than a direct buyer assistance program. If you're house hunting in Colorado Springs proper, CHFA and PPDPA are where the help actually comes from, not the city itself.
Key Numbers at a Glance
| Figure | Amount | Source |
|---|---|---|
| CHFA income limit (1-2 person) | $127,800 | ConsumerAffairs |
| CHFA price cap | $566,730 | ConsumerAffairs |
| CHFA Down Payment Assistance Grant | Up to $25,000 | ConsumerAffairs |
| PPDPA max assistance | Up to 5%, forgivable | El Paso County Administration |
| PPDPA income limit (government loans) | $178,920 | El Paso County Administration |
| El Paso County median sale price (Aug. 2026) | $475,000 | propcash.co, Pikes Peak Association of Realtors |
How Much Do Homes Cost in Colorado Springs Right Now?
In El Paso County, the median sale price for single-family and patio homes was $475,000 in August 2026, down 2.1% from $485,000 the year before (propcash.co, Pikes Peak Association of Realtors). That gives you a real-world sense of what programs like CHFA and PPDPA are actually helping buyers cover.
It also tells you something about why down payment assistance matters so much here. A few thousand dollars toward closing can be the difference between waiting another year and actually getting into a house.
A Note From Someone Who Works the Plains East of Here
I'm Chelsea Pruitt, and most of my days are spent with buyers out in Kiowa, Elizabeth, Elbert, and the rest of the Eastern Plains, along with folks selling in Aurora, Parker, or Castle Rock to fund a move further out. Colorado Springs isn't my home turf, but I hear from enough Denver Metro families weighing El Paso County against Elbert or Douglas County that I wanted this information somewhere clear and honest, with real sources instead of guesswork.
If you're trying to figure out whether Colorado Springs, Elbert County, or somewhere further out on the plains makes more sense for your first home, I'm happy to talk it through with you, no pressure, just an honest conversation about what you're working with. You can reach me at Chelsea Pruitt Real Estate by calling or texting +1 (303) 877-7951, or through my contact page whenever it's convenient for you.