Colorado Springs · Program guide

Colorado Roots down payment assistance in Colorado Springs

Colorado Roots is a down payment assistance loan from Impact Development Fund for first-time and first-generation buyers. In El Paso County it applies inside the City of Colorado Springs and the City of Manitou Springs. It can cover up to 10% of the price, capped at $50,000, and it pairs with conventional or portfolio financing, not FHA. Here is how it works, drawn from IDF's August 2026 guidelines.

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At a glance

Colorado Roots guidelines, as of September 2026

Guideline	Colorado Roots (August 2026)
Assistance	Up to 10% of the purchase price, $50,000 maximum
Use of funds	Down payment, closing costs and prepaid items for the first mortgage
Rate and repayment	1.00% fixed at 100% AMI or less; 2.00% fixed at 101% to 120% AMI. Monthly principal and interest, term up to 30 years
Who qualifies	First-time or first-generation homebuyers buying a primary residence
Income	50% to 120% of HUD area median income for household size, in the home's county
First mortgage	Conventional or portfolio. No negative amortization or prepayment penalty. FHA not permitted
Debt ratios	Housing ratio at or below 38%; total debt ratio at most 45%
Combined loan-to-value	100% of purchase price maximum
Buyer contribution	Greater of $1,000 or 1% of the price; seller credits and premium pricing do not count
Homebuyer education	Required, from a HUD-approved provider
Fees	No origination charge; the borrower pays recording and title closing fees on the DPA loan
Property	Single family, duplex, townhome, condo, or manufactured home on a permanent foundation taxed as real property. Existing homes must pass a Housing Quality Standards inspection. Not in a FEMA flood plain. Owner or seller occupied, or vacant, when the offer is made
Occupancy	Primary residence for at least 5 years
Where in El Paso County	City of Colorado Springs and City of Manitou Springs

From Impact Development Fund's Colorado Roots guidelines, revised August 2026. IDF staff have exception authority on eligibility and underwriting, and terms can change; the guidelines are the authority.

How it works

A repayable loan with a low fixed rate

Colorado Roots is limited to homes in jurisdictions and communities that have made a Proposition 123 Local Government Affordable Housing commitment with the Colorado Division of Housing. That is why the service area is a list of specific cities, towns and counties rather than the whole state.

Unlike a forgivable second mortgage, Colorado Roots is repaid. You make a second monthly payment at 1% or 2% interest for up to 30 years, and the remaining balance is due if you sell, transfer or refinance, or stop living in the home. You also agree to keep the home as your primary residence for at least five years.

The larger amount is the draw. On a higher-priced home, 10% up to $50,000 can cover much more than a program capped at a smaller percentage of the loan. The trade-off is the added payment and the narrower list of first mortgages it works with.

The process

From application to closing

Get prequalified on a conventional or portfolio loan

The first mortgage has to be a conventional or portfolio product. FHA is not allowed with Colorado Roots.

Complete homebuyer education

A certificate from a HUD-approved homebuyer education provider is required on every Colorado Roots loan.

Your loan officer submits the file to IDF

The first mortgage loan officer sends IDF the Colorado Roots loan file checklist, including the application, loan estimate, income and asset documents, purchase contract, appraisal and a Housing Quality Standards inspection. IDF asks for the file at least three weeks before closing and says a commitment is usually issued within 48 hours.

Both you and the loan officer sign the Lender Certification

IDF requires the borrower and the first mortgage loan officer to execute its Lender Certification form, acknowledging disclosure of all loan terms.

IDF closes and funds its loan

IDF sends closing instructions, documents and loan proceeds to the title company. You cannot receive cash back at closing; any excess goes to principal reduction.

Compared

Colorado Roots vs Pikes Peak DPA

	Colorado Roots	Pikes Peak DPA
Amount	Up to 10% of price, $50,000 max	Up to 5% of the loan amount
Repayment	Monthly payments at 1% or 2%	0% and forgivable: half over 5 years, the rest at 30 years
First mortgage	Conventional or portfolio; no FHA	FHA, VA, USDA-RD, Freddie Mac HFA Advantage
First-time buyer	Required (or first-generation)	Not required
Where in El Paso County	Colorado Springs and Manitou Springs	The whole county

PPDPA figures from the El Paso County Housing Authority's program page and guidelines, as of September 2026. Neither program's documents describe using both on the same purchase. See the full El Paso County comparison or our Pikes Peak DPA page.

Where we come in

How a broker fits in

Clayhouse Mortgage is an independent mortgage broker in Colorado Springs; Logan Bowles is the licensed loan officer. We are not a lender and we do not make Colorado Roots loans. For Colorado Roots, the first mortgage comes from the lender you choose, and IDF originates, closes and services the assistance loan. We can help you check eligibility and, where a program is available through the wholesale lenders we work with, originate the loan.

Clayhouse Mortgage is not affiliated with Impact Development Fund, the Colorado Division of Housing, or any government entity.

Common questions

Colorado Roots, answered

What is Colorado Roots down payment assistance?+

Colorado Roots is a down payment assistance loan from Impact Development Fund for first-time or first-generation homebuyers buying a primary residence in communities with a committed Proposition 123 Local Government Affordable Housing filing. Under the August 2026 guidelines it provides up to 10% of the purchase price, with a $50,000 maximum, for down payment, closing costs and prepaid items.

Is Colorado Roots available in Colorado Springs?+

Yes. The City of Colorado Springs is on Impact Development Fund's August 2026 service list. Within El Paso County, the City of Manitou Springs is the only other listed community; El Paso County itself, Monument, Fountain and unincorporated areas such as Falcon are not on the list.

Do I have to repay Colorado Roots?+

Yes. It is a loan repaid in monthly principal and interest payments over up to 30 years: 1.00% fixed for households at or below 100% of area median income, and 2.00% fixed for households from 101% to 120%. The balance becomes due on sale, transfer, refinance, when the home stops being your primary residence, or on the borrower's death.

Can I use Colorado Roots with an FHA loan?+

No. The guidelines allow conventional or portfolio first mortgages without negative amortization or prepayment penalties, and state that FHA mortgages are not permitted.

What are the income limits for Colorado Roots?+

Household income must be between 50% and 120% of the most recently published HUD area median income for your household size in the county where the home is located. Income is measured for all adult household members under 24 CFR 5.609.

How much do I have to put in myself?+

The greater of $1,000 or 1% of the purchase price, from a source acceptable to the first mortgage lender. Seller contributions and premium rate pricing cannot count toward that minimum. Buyers must also spend down liquid assets above $50,000, not counting retirement, college savings or health savings accounts.

Can Clayhouse Mortgage help with Colorado Roots?+

Clayhouse Mortgage is an independent mortgage broker and is not affiliated with Impact Development Fund. We can help you check eligibility and, where a program is available through the wholesale lenders we work with, originate the loan. Colorado Roots itself is originated, closed and serviced by Impact Development Fund.

Sources

Where these facts come from

Program facts on this page come from these documents, each reviewed on September 29, 2026. Programs change their terms; the linked documents are the authority.

Keep exploring

See if Colorado Roots fits your purchase.

Tell us where you are buying and your rough household income. We will check the address against the service list and walk through the numbers with you, with no pressure and no application required to ask.

See what you qualify for

A few details and we will reach out, no application needed to ask.