Home Down Payment Assistance Program (HDAP)


The Home Down Payment Assistance Program (HDAP) is an affordable housing mortgage assistance program made available by the City of Pueblo’s Department of Housing and Citizen Services in conjunction with private lenders to help low- to moderate-income individuals and families purchase their first home.

Applicants can apply for Veterans Affairs (VA), Federal Housing Administration (FHA), Fannie Mae, or other conventional insured mortgages under any private lender program. The home, when assisted by HDAP funds, must meet minimum housing quality standards for health and safety as set by the U.S. Department of Housing and Urban Development (HUD). The borrower must qualify for a first mortgage through a private lending institution.

How the Program Works
Eligible borrowers will receive a deferred forgivable loan with a maximum amount of $5,000, only if needed. These funds can be applied toward the payment of usual and customary closing costs and/or matching up to 50% of the required down payment (this may vary depending on the type of mortgage you select). The borrower must occupy the home as their principal place of residence. Renting the property is not allowed.

The loan is deferred for a period of 5 years. After this 5-year period, the loan is automatically forgiven as long as the homebuyer has met the requirements under the deed and promissory note. If the borrower sells or refinances the property during the 5-year period, the loan shall be repaid in full.