AURORA | Aurora homebuyers have a new path to homeownership through a state-wide down-payment assistance program launched this month.
The program is designed to help moderate-income residents overcome the hurdle of the upfront cost of getting a mortgage, and it will run through Oct. 31, 2026 or until the city’s allocation is exhausted.
The program will cover up to 10% of a home’s purchase price for qualifying buyers, according to the statement. Assistance starts at 4% and is issued as a “silent” second loan with no monthly payments, due only when the homeowner sells, refinances or pays off the primary mortgage, according to the city statement.
“We are proud to launch the Down Payment Assistance Program to make homeownership more achievable for the families and individuals who call Aurora home,” Sarah Pulliam, Aurora’s housing and community development manager, said in a statement.
To qualify:
- The home must be located within Aurora city limits.
- Eligible households may earn up to 120% of Area Median Income (AMI), as much as $168,120 for a family of four in Aurora’s three counties, and as much as $117,720 for a single-family home, according to the Colorado Department of Local Affairs (DOLA).
- Applicants must be first-time homebuyers.
- Households must have a front-end debt-to-income ratio of 35% or less, meaning no more than 35% of monthly income goes toward mortgage costs, taxes, insurance, HOA fees or metro district charges, according to Veronika Hewitt, the communications manager for DOLA.
The city received $720,000 for the initiative through DOLA. Those dollars come from the statewide Proposition 123 affordable housing fund, which provides grants to local governments and nonprofits that administer down-payment aid, according to the statement.
“The city requested $1.2 million from DOLA for this program before being awarded $720,000,” Joe Rubino, public information officer, said in an email. “We expect to help an estimated 24 households with the money we received.”
Voters approved Proposition 123 in 2022, creating the State Affordable Housing Fund by dedicating 0.1% of state income tax revenue to affordable and workforce housing efforts, according to DOLA. The measure was created as a long-term state-wide solution to Colorado’s housing shortage, generating roughly $300 million annually. However, the Taxpayer Bill of Rights (TABOR) rules allow the state to redirect funds in low-revenue years, such as this year, which causes the state to reappropriate approximately $105 million of Proposition 123 funding back into the general fund, according to the Denver Post.
By law, 40% of Prop. 123 dollars flow to DOLA, while 60% are overseen by the Office of Economic Development and International Trade (OEDIT) and managed by the Colorado Housing and Finance Authority (CHFA), according to the Colorado OEDIT.
DOLA uses its share to support affordable homeownership programs, homelessness services and local planning and capacity grants.
To access most of these funds, local governments must make a Local Government Affordable Housing Commitment, which includes establishing a baseline of affordable housing stock and agreeing to increase it by 3% annually, or 6% over two years or 9% over three years.
Participating governments must also offer an expedited review process for affordable housing developments.
According to the state’s latest Affordable Housing Support Fund Annual Report, the down-payment assistance program is specifically designed to expand access to homeownership for moderate-income Coloradans. Loans can be amortized or deferred depending on the administering agency. They carry a five-year affordability period and may cover up to 20% of the home’s cost, according to DOLA, though Aurora’s program caps support at 10%.
Statewide interest in Proposition 123 funding remains high. During the current fiscal year, DOLA received $141.9 million in funding requests and awarded $108.4 million to 173 applicants, according to the Affordable Housing Support Fund Annual Report.
Those awards are expected to support 1,118 affordable housing units and provide services to more than 81,000 households across Colorado, according to the report.
In the 2024-2025 fiscal year alone, Down Payment Assistance funds helped support 114 home purchases statewide, according to DOLA.
To apply
Aurora residents interested in the program can contact the city’s housing team by emailing brcarter@auroragov.org or calling 303-739-7900. For additional details, visit Auroragov.org/residents/home_improvement/down_payment_assistance.
A complete list of Aurora’s housing programs is available at AuroraGov.org/Housing.