Looking for a home in Aurora, CO? Learn how the new CHIP program provides up to 10% down payment assistance. Check your eligibility and apply today!
The City of Aurora in Colorado is now accepting applications for a new Down Payment Assistance (DPA) program designed to help more residents achieve homeownership by reducing upfront costs. The community home investment program will provide between 4% and 10% of a home’s purchase price for qualifying buyers purchasing a primary residence within Aurora city limits
What is the Aurora CHIP 10 Program?
The Aurora CHIP 10 (City Home Ownership Incentive Program) is a down payment assistance initiative providing between 4% and 10% of a home’s purchase price to qualifying buyers. Funded by a $720,000 grant from the Colorado Department of Local Affairs, the program is designed to help moderate-income residents purchase a primary residence within the Aurora city limits. The assistance is structured as a silent second loan, meaning there are no monthly payments; instead, the loan is repaid only when the owner sells the home, refinances, or pays off the primary mortgage.
Eligibility Requirements for Aurora Homebuyers
To qualify for this assistance, applicants and properties must meet specific criteria:
Key Features:
- Benefit: Covers 4%–10% of the purchase price of a home
- Eligibility: Household income may not exceed 120% of Area Median Income (AMI)
- Annual income of up to $168,120 annually for a family of four across Aurora’s three-county area
- AMI limits are federally calculated and subject to change
- Property Requirement: Home must be located within the Aurora city limits
- Loan Structure:
- Assistance is provided as a silent second loan
- No monthly payments required
- Repayment occurs only upon sale, refinance, or payoff of the primary mortgage
This program is structured to help working families and individuals who can afford a monthly mortgage but struggle to save enough for a down payment in today’s market.
Agent Action Steps:
- Identify buyers purchasing within Aurora who earn under 120% of AMI
- Educate clients on how a silent second loan works and when repayment is triggered
- Coordinate early with lenders to confirm compatibility with primary mortgage products
- Encourage buyers to apply as soon as possible, as funding is limited
Actions for Buyers to Take Now
Homebuyers interested in taking advantage of Aurora’s Down Payment Assistance Program should begin preparing early. Here are the top steps buyers should take now:
- Confirm income eligibility based on household size and county AMI limits
- Work with an agent to identify properties within the Aurora city limits
- Speak with a lender early to ensure the loan structure fits your financing plan
- Gather financial documentation before starting the application
- Apply through the city’s online portal as soon as possible
Income Limits (AMI) and Property Requirements
To qualify for the Aurora CHIP 10 (City Home Ownership Incentive Program), applicants must meet specific financial and property-related criteria. This program is specifically designed to support moderate-income residents.
1. Household Income Limits (120% AMI)
Eligibility is based on the Area Median Income (AMI) for the City of Aurora. Your total household income must not exceed 120% of the AMI.
2. Property Eligibility Requirements
The property you intend to purchase must meet these strict guidelines to ensure the funds are used effectively:
The home must be located within the incorporated City of Aurora limits.
Eligible homes include single-family detached houses, townhomes, and condominiums.
The home must be used as your primary residence. This assistance is not available for rental properties or vacation homes.
The property must meet minimum habitability standards and pass a standard appraisal to ensure it is a safe investment.
3. Buyer Qualifications
You must not have owned a home in the last three years.
Your monthly housing costs should generally not exceed 35% of your gross monthly income.
Buyers are often required to contribute a minimum amount (usually around $1,000) of their own funds toward the purchase.
How to Apply for Down Payment Assistance in Aurora
The program is active through October 31, 2026, or until the $720,000 fund is exhausted. Because funds are limited, interested buyers should take the following steps:
Verify Eligibility: Confirm your household income falls under the 120% AMI threshold.
Consult a Lender: Ensure your primary mortgage is compatible with a silent second loan.
Submit Application: Apply through the city’s online portal. For specific questions, you can contact the program via email at brcarter@auroragov.org or by calling 303-739-7900.
