Fact sheet
Pikes Peak Down Payment Assistance (PPDPA)
OpenAll of El Paso County including the City of Colorado Springs
- Buyers
- Any buyer (no first-time requirement) using a PPDPA first mortgage
- Amount
- Up to 5% of loan as 0% soft second
- Form
- Forgivable loan
- Income cap
- $178,920 for FHA/VA/USDA; $92,560 for Freddie Mac conventional
- Price cap
- None
- First-time only
- No
- Conditions
- Participating lender; 30-year fixed FHA, VA, USDA or Freddie Mac HFA Advantage; max DTI 45% (640+) or 50% (680+); homebuyer education required for first-time buyers on Freddie loans; no refinances
50% forgiven pro rata over first 60 months, remaining 50% forgiven at 30 years; due on sale/refinance. Not a bond program, so no recapture tax. Funds 'continuously available until further notice.' Linked from the City of Colorado Springs housing resources page. Cannot be combined with CHFA Schools To Home (needs its own first mortgage). See Hometown Heroes add-on under occupation_specific.
Checked November 2026 · method
Check my eligibility →How PPDPA forgiveness works
The El Paso County Housing Authority runs PPDPA, with U.S. Bank as master servicer. The second mortgage carries no interest and no payments. Half of it is forgiven gradually over the first 60 months; the other half is forgiven at 30 years. Sell or refinance before then and the unforgiven part is due. Because PPDPA is not a bond program, there is no federal recapture tax. The county says funds are continuously available until further notice.
Who qualifies for PPDPA?
Any buyer who uses a PPDPA first mortgage from a participating lender, first-time or not. Loan choices are 30-year fixed FHA, VA, USDA or Freddie Mac HFA Advantage. Income limits are $178,920 on FHA, VA and USDA loans and $92,560 on the Freddie Mac conventional option. There is no price cap. DTI can reach 45% with a 640 score or 50% with 680. First-time buyers on Freddie loans must take homebuyer education. Refinances are not eligible.
Using PPDPA with Schools To Home, Champions or Hometown Heroes
PPDPA cannot be combined with Schools To Home; each needs its own first mortgage. A District 11 or Academy 20 employee should compare a 5% forgivable second here with Schools To Home's larger repayable second. Teachers, responders and healthcare workers may add the Hometown Heroes 1% grant on top of PPDPA while that funding lasts. How PPDPA compares with Colorado Champions for a firefighter or deputy is something a participating lender can price side by side.
Picture a $350,000 FHA loan: 5% would be $17,500. After five years in the home, half of that, $8,750, would be forgiven, leaving the other half to be forgiven at year 30 unless you sell or refinance earlier. Compared with a CHFA second that is repaid in full, that can be a meaningful saving for buyers who stay put. The Freddie Mac income limit is much lower than the government-loan limit, so most higher earners will use FHA, VA or USDA.
How to apply
Find a PPDPA participating lender through El Paso County, get pre-approved on an eligible loan type, and ask about Hometown Heroes if your job qualifies. See the El Paso County page, our overtime and shift pay guide, and check eligibility.
County guides for this program: El Paso County.
Questions about Pikes Peak Down Payment Assistance (PPDPA)
Is Pikes Peak DPA forgiven?
Yes. Half is forgiven pro rata over the first 60 months and the rest at 30 years; it is due if you sell or refinance first.
Do I have to be a first-time buyer?
No. Any buyer using a PPDPA first mortgage can qualify.
Can PPDPA be used with Schools To Home?
No. Each program needs its own first mortgage.
Similar programs
- CHFA HomeAccess / HomeAccess Plus
- CHFA SectionEight Homeownership / SectionEight Homeownership Plus
- CHFA Preferred Very Low Income (VLIP)
- Colorado HFA1 / Colorado HFA1 Plus
- Colorado Roots Down Payment Assistance Fund
- Dearfield Fund Purchase Program
Summarized from the program's official page, November 2026. Money and rules shift; check today's terms with the administrator or a participating lender. Colorado Down Payment Assistance has no tie to this program.
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