A Closer Look at PwrTPO's State-Specific Down Payment Assistance Programs

For many aspiring homeowners, the down payment is one of the biggest hurdles to closing on a home. Down payment assistance (DPA) programs help close that gap, and PwrTPO offers several state-specific options. This week, we're going deeper on four of them: CHFA, MBOH, Metro DPA, and OHFA. Each one is built around a different state housing agency, and each comes with its own rules on funding, repayment, and eligibility.

As always, program details can change, so this is a general overview. Your Account Executive can walk through current guidelines for your specific scenario.

Colorado Housing and Finance Authority (CHFA)

CHFA offers four second-mortgage programs for Colorado properties only, all paired with a first mortgage: FirstStep, SmartStep, First Gen, and Preferred.

• FirstStep and First Gen require FHA financing on the first mortgage, a minimum 620 FICO, and homebuyer education for all borrowers prior to closing. First Gen is reserved for first-generation buyers, meaning the borrower's parents or guardians must not have owned a home, and it comes with a flat $25,000 second mortgage.

• SmartStep and Preferred allow more flexibility on financing and do not require homebuyer education.

• All four programs offer the second mortgage as a zero percent, no-payment, no-accrued-interest silent second, repaid in full only when the home is sold or refinanced.

• Eligible property types include single family, attached and detached homes, PUDs, agency-eligible condos, and modular and manufactured homes on a permanent foundation, including single-wide. Conventional loans must be run through DU as HFA Preferred or LPA as HFA Advantage; HomeReady and HomePossible are not allowed on CHFA loans.

Montana Board of Housing (MBOH)

MBOH offers three programs for Montana properties: Bond Advantage, MBOH Plus 0% Deferred, and Regular Bond.

• Bond Advantage provides a second mortgage of up to 5% of the sales price or $15,000, whichever is less, at the same rate as the first mortgage on a 15-year amortization.

• MBOH Plus 0% Deferred offers the same maximum assistance amount as a true zero percent deferred second, with no monthly payments, due only upon sale, refinance, or payoff of the first mortgage. This program is capped at a maximum household income of $80,000 for one to two people or $90,000 for three or more.

• Regular Bond carries no second mortgage assistance amount but follows agency qualification and ratios, with an exception path for borrowers above a 680 FICO who meet front and back ratio limits.

• All three programs require a minimum 620 FICO, a minimum $1,000 cash investment, homebuyer education through NeighborWorks, and written verifications of employment for all employed borrowers. Eligible property types are single family, condo, townhome, and permanently affixed manufactured homes taxed as real property.

Metro DPA (Denver Metro, Colorado)

Metro DPA is available only in certain Colorado cities and counties.

• Offers second mortgage assistance of 2 to 4% of the sales price, structured as a 0% interest, 30-year deferred loan, repaid upon sale or refinance of the first mortgage.

• Minimum FICO 620, DTI per AUS approval.

• Property types include SFR, 1-4 unit, detached or attached, condos, townhomes, and manufactured homes.

• Requires completed HUD or National Industry Standards homebuyer education.

Ohio Housing Finance Agency (OHFA)

OHFA offers programs for Ohio properties across Conventional, FHA, VA, and USDA-RD financing: First-Time Homebuyer, Next Home, Ohio Heroes, Grants for Grads, and FTHB Edge, plus the Mortgage Tax Credit Plus product.

• First-Time Homebuyer, Next Home, Ohio Heroes, and FTHB Edge all pair with OHFA's standard down payment assistance: a second loan with no accrued interest, sized at 3% of purchase price on conventional loans or 3.5% on government loans, forgiven in full on the seventh anniversary and repaid if the home sells or refinances before then.

• Grants for Grads is reserved for borrowers who completed a degree within 18 months of their OHFA reservation date, and runs on a shorter 5-year forgivable second that reduces 20% per year, with the remaining balance forgiven at sale before year 5 if the borrower has maintained Ohio residency.

• Ohio Heroes carves out eligibility for active military, veterans, surviving spouses, and everyday heroes, meaning firefighters and EMTs, health care workers, police officers, and teachers, provided at least one occupant borrower qualifies and household income falls at or below county limits.

• Homebuyer education is required for at least one owner-occupant borrower on every program, including Next Home repeat buyers, and must be completed before commitment approval.

• Minimum FICO starts at 640 on conventional and USDA-RD loans and 650 on FHA. Financing is limited to Fannie Mae HFA Preferred, Freddie Mac HFA Advantage, FHA, VA, and USDA-RD; standard HomeReady and HomePossible are not available. All OHFA loans are purchase-only on a 30-year fixed rate.

The Common Thread

Every one of these programs is built around the same idea: pairing a qualified borrower with a second lien that covers what they couldn't save on their own. But the mechanics differ enough, from repayment terms to income limits to who signs the loan documents, that a one-size-fits-all approach to DPA doesn't work. That's where an experienced team matters.

PwrTPO's operations team averages 15+ years of government lending experience, and our underwriters bring 15+ years of experience to every file, so DPA scenarios get evaluated by people who have seen the details before. Combined with 100% U.S.-based operations and technology built into ARIVE, Loansifter, and TPO Connect, your DPA loans move through the pipeline without extra friction.

Next Steps

Program guidelines, income limits, and eligibility requirements can and do change. Bring your borrower's scenario to your PwrTPO Account Executive, who can confirm current program details and help you match your borrower to the right fit.

This information is provided for mortgage professionals only and is intended as a general overview. It is not intended for consumer use or distribution. Program availability, terms, and eligibility requirements vary by product and are subject to change without notice. This is not a commitment to lend. Equal Housing Lender | NMLS ID #1124061.

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