First-Time Home Buying Programs: What's the Catch?

Giordan Thompson
Aug 20
4 min read

Millennials have a tough hand when it come to homeownership. Some of us entered the job market during the 2008 crash, and the younger end graduated into COVID. A lot of us have been laid off, drafted 400+ applications, and still can't land something. Rates are high, prices haven’t collapsed, and it’s feels impossible to catch up.

Woman holding house key against sunset cityscape. Text: "First-Time Home Buying Programs: What's the Catch? CHFA, metroDPA, CHAC."

Here’s the truth: sellers are offering real incentives today, $15K–$30K in concessions, because many homes are sitting on the market. The combo... More days on market + motivated sellers, can finally make your dream of owning a home come true. This blog breaks down first time buyer programs, and the catches, so we can pounce on an opportunity when the time is right.

Get pounce-ready (budget + education)

Before anything, we need to clear our heads and create a financial plan. What payment feels safe? How much cash can you set aside? And how can we create cushion after closing? Then, we need to learn the home buying process and know what recourses are available to us. Doing both of these now means we can be confident in writing an offer and striking a deal.

Logos for CHFA, MetroDPA, and Colorado Housing Assistance Corporation with text on a white background, featuring teal and purple accents. — Denver Metro financial assistance programs

The big three in Denver Metro

1) CHFA (Colorado Housing & Finance Authority)

What it is: A first mortgage paired with help for your down payment/closing costs. Options include grants (you don’t repay) or second mortgages (no/low payments now, repaid when you sell or refinance).

Why it helps: Lowers cash to close and opens the door for buyers who are solid on income but short on savings.

The catch: Some options come with a second lien or slightly higher first mortgage rate, more paperwork, and education required.

2) metroDPA (City & County of Denver–sponsored)

What it is: A percentage of your first loan amount as assistance, recorded as a zero interest, no payment second mortgage. Typically repaid when you sell, refinance, or pay off the first loan. Coverage extends beyond Denver into much of the Front Range.

Why it helps: Keeps monthly payments affordable without adding a payment on the assistance itself.

The catch: It’s still a lien, so refinancing later can require payoff.

3) CHAC (Colorado Housing Assistance Corporation)

What it is: Low interest, flexible second mortgages for low to moderate income first-time buyers, statewide.

Why it helps: Bridges your down payment/closing gap when you need more than a grant can cover.

The catch: Funds can be limited, the CHAC payment counts in your debt-to-income, so budgeting matters.

Okay, but what’s the actual catch?

Every program trades convenience for affordability. Translate the fine print like this...

Second lien strings attached: Many assistance options are recorded as liens. You’ll repay at sale/refinance or ask the program to “subordinate” if you refinance early.
Rate and pricing: Some setups pair assistance with a slightly higher first mortgage rate. Sometimes that’s still worth it if it gets you in the door with less cash.
More steps, more docs: Expect a homebuyer class, extra disclosures, and slightly longer timelines on closing.
Rare tax gotchas: Certain benefits can trigger a federal “recapture” tax if you sell under specific conditions. Programs often have guidance or reimbursements. Ask your lender and a tax pro up front.

None of these are deal breakers. The key is matching the program to your time horizon, how long you’ll hold the home and when you might refinance.

Homebuyer guide shows four steps: budget, take a class, talk to lender, leverage concessions. Text for Denver Metro, first-time buyers. — Homebuyer game plan - Denver Metro area

Your game plan (simple and fast)

Budget first: Pick a monthly payment plan you could live with even in a slow month. Build a small closing cushion.
Take the class: Check the box early and learn the whole playbook in one shot.
Talk to an approved lender: Not every lender does these. Ask them to price: conventional/FHA with and without assistance so you can compare cash-to-close and monthly payments.
Leverage seller concessions: Pair assistance with seller credits to cover closing costs or a rate buydown. This is where the $15K–$30K incentives can change everything.

Quick FAQ

Do I need to be a Colorado resident for X months? Most programs focus on income, credit, first-time status, and buying an owner occupied home in the covered area, not a strict residency requirement.

Can I stack programs? Sometimes. It depends on the lien type, your main loan (FHA/VA/USDA/Conventional), and each program’s rules. Coordinate early with your lender.

Do I still need 20% down? No. Many first-time loans start as low as 3% down, and assistance can cover part of that plus closing costs.

Obviously, we can’t control rates or the economy, but we can control readiness. With a budget, the program classes done, and an approved lender, we can compare CHFA vs. metroDPA vs. CHAC against a real Denver listing and decide fast. Pair the right program with today’s seller concessions, and owning in the Denver Metro shifts from “never going to happen” to “let’s write an offer.”

If you want, drop me a target price and neighborhood. I’ll put something together so you can find a clear path to owning a home.