Down Payment Resource has just released its Q4 2024 Homeownership Program Index (HPI) Report, which shows a continued rise in the number of available homebuyer assistance programs from last quarter. There are now 22 new programs for a total of 2,466 – the highest number of programs we’ve ever recorded. Since Q4 2023, 172 new programs have been added, a 7% YoY increase.

Derived from our comprehensive DOWN PAYMENT RESOURCE® database, the HPI report highlights the latest trends in down payment assistance (DPA) programs. On average, these programs can lower a buyer’s LTV by 6%, helping more applicants qualify for a mortgage. 

The Q4 report also shows a growing number of programs to support the purchasing of manufactured and multi-family homes, allowing borrowers to access more affordable housing and housing that will provide a passive income. A total of 805 programs now support multi-family purchases, a 17% increase over Q4 2023’s 686 programs, a 17% YoY increase. Of these, 539 allow for 3-unit properties, up 2% from Q3 2024, while 513 allow for four-unit properties, up 3% YoY.

Likewise, the number of programs allowing for the purchase of manufactured housing has increased from 804 in Q4 2023 to 914 in Q4 2024, a 14% increase.

The report also reveals a slight shift in program types, second mortgages, below market rate (BMR)/resale restricted, combined assistance and grant programs making YoY gains. There was also an increase in the number of local housing finance agencies offering programs, from 99 in Q4 2023 to 171 in Q4 2024, a 60% YoY increase.

Slightly more programs are being reserved for first-time buyers, moving from 1,381 in Q4 2023 to 1,518 in Q4 2024, a 10% YoY increase. 

Program trends

The number of programs offered in Q4 2024 increased by 22 over the previous quarter, raising the total number of programs to 2,466 from 2,444. 

• 968 municipalities offered DPA programs. Municipalities represented the majority of funding sources, representing 39% of funding source totals for Q4 2024, virtually unchanged from last quarter. Nonprofits were the second highest funding source, 21% in Q4 2024, followed by state HFAs at 19%. 

Program spotlight: The City of San Antonio Homeownership Incentive Program offers up to $15,000 to first-time homebuyers with a household income of $74,350-$140,200 unless displaced involuntarily and permanently moved from real property or if they were someone who owned a home previously, but have since divorced. 75% is forgiven over a ten-year period. 25% would need to be paid back if there is a change in ownership, the home is sold or the loan is refinanced with cash back. The maximum purchase price for an existing home is $305,200 and for new construction $325,800.

• 914 programs support manufactured housing, up 14% from Q4 2023. Manufactured homes, which are built in factories and assembled onsite, are generally considered to be an affordable housing alternative because they are cheaper to build and purchase than site-built homes. 

Program spotlight:  Champlain Housing Trust Manufactured Home Down Payment Loan in Vermont offers up to $40,000 to buyers of manufactured homes in the form of a deferred and assumable second loan until the home is sold, transferred or refinanced. Applicant income must be between $79,800 and $188,400, with no limits on purchase price.

• 1,518 programs are for first-time homebuyers, a 10% increase from 1,381 in Q4 2023. 2,232 programs are income-restricted, up 6% from 2,098 in Q4 2023. 234 programs have no income restrictions, 19% more than 196 in Q4 2023. This latitude may make it easier for lenders to qualify at moderate income levels who need assistance with their down payment, closing costs, or other costs of homeownership. 

Program spotlight: Atlanta Housing’s Homeownership Down Payment Assistance Program offers up to $20,000 and up to $25,000 for professionals and para-professionals in public safety, healthcare and education; borrowers who are disabled; current military or veteran; and voucher recipients in the form of a 10-year forgivable loan. Borrower income cannot exceed 80% of the average median income for metro Atlanta and the maximum purchase price is $375,000. 

• Using DPA for purchase of a multi-family property grew by 2% to 805 programs. While all 805 allow for purchasing of two-unit properties, 539 allow for three units and 514 allow for four units. Typically, the buyer must reside in one of the units but can rent the others, allowing them to be both a buyer and a landlord. 

Program spotlight: Affordable Housing Partnership Touhey Homeownership Foundation Reparative Justice Housing Fund in New York offers grants up to $10,000 to assist first-time Black homebuyers purchasing a home, with 1-4 units permitted, in the City of Albany, and up to $5,000 if the home is purchased in Rensselaer, Schenectady, Troy or Watervliet. The grant can be used to address a variety of financial barriers to homeownership. There are no Income or purchase price limits.

Breakdown of new programs

Here is a breakdown of the homebuyer assistance programs added since Q4 2024 by assistance type:

• Grant programs showed the largest quarterly growth at 39%, followed by Below-Market Rate (BMR)/resale (29%), combined assistance (27%), and deed restriction programs (26%). Housing choice voucher programs grew by 12%, and first mortgage programs grew by 10%.
• Energy Efficiency programs grew by 50%, surviving (military) spouse programs increased by 31%, and Native American programs increased by 9%.

Breakdown of all programs

Overall, the breakdown of homebuyer assistance programs available by type was virtually the same as the previous quarter. 

• Of the 2,466 homebuyer assistance programs:
  • 81% of programs are funded.
  • 10% of programs are inactive. 
  • 4% of programs have a waitlist for funding.
  • 5% of programs are temporarily suspended.
• 74% of programs in the database are for down payment or closing cost assistance. 
• 10% of programs are first mortgages.
• 3% of programs are Mortgage Credit Certificates (MCCs).
• 13% are other program types.
• 62% of programs are for first-time buyers, while 38% allow repeat buyers.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. You can also download the full infographic.

Down Payment Resource builds tools that help mortgage lenders, real estate agents, multiple listing services and consumer listing sites build relationships with homebuyers by connecting them with the homebuyer assistance they need.

To learn how Down Payment Resource can help you support homebuyers, contact us.

Methodology

Published quarterly, DPR’s HPI surveys the funding status, eligibility rules and benefits of U.S. homebuyer assistance programs administered by state and local housing finance agencies, municipalities, nonprofits and other housing organizations. DPR communicates with over 1,300 program providers throughout the year to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates (MCCs) and affordable first mortgages, in the DOWN PAYMENT RESOURCE® database.

While the VA loan program allows members of the military to buy a home with no down payment, some of these buyers may still face challenges with closing costs or other related expenses. Numerous organizations and state programs provide homebuyer assistance to help alleviate this burden. 

While service members are eligible for any of the 2,400-plus U.S. homebuyer assistance programs, we found there are 49 programs offering up to $117,000 in assistance specifically developed to help our military community members build, buy or make accessibility-related home renovations. Additionally, there are 211 programs that waive first-time homebuyer requirements for Veterans and military personnel. 

In honor of the sacrifices made by the courageous members of the U.S. Armed Forces, this Veterans Day we’re highlighting five affordable homeownership programs designed for military buyers:

City of Westlake Housing Assistance Purchase Program  

• The City of Westlake Housing Assistance Purchase Program offers up to $60,000 in the form of a deferred, 10-year forgivable loan, with 10% of the loan amount being forgiven annually, except the first year wherein 5% will be forgiven. The program is open to first-time and repeat buyers, and Veterans of all branches of the military can qualify for an additional 3% of the purchase price. Applicants earning up to 140% of the area median income (AMI) are eligible and there are no purchase price limits.

Florida Hometown Heroes Housing Program

• Eligible borrowers for the Florida Hometown Heroes Housing Program from the Florida Department of Veterans Affairs receive up to 5% of the first mortgage loan amount (up to a maximum of $35,000) in down payment and closing cost assistance in the form of a 0%, non-amortizing, 30-year deferred second mortgage. To qualify, homebuyers must connect with a participating loan officer, have a minimum credit score of 640, provide certification of active military or Veteran status, and meet the income threshold for their county.

NeighborWorks Columbus – Hallock Soldiers Fund

• The NeighborWorks Columbus Hallock Soldiers Fund offers Veterans and active duty soldiers up to $5,000 in a deferred, zero-interest, five-year forgivable loan. There are no income limits or price restrictions. Applicants must be first-time homebuyers (have not owned a home in three years). Homebuyer education by NeighborWorks Columbus is required. 

Utah Veteran First-Time Homebuyer Grant

• The Utah Veteran First-Time Homebuyer Grant supports active military and Veterans who have retired in the past five years with a $2,500 grant that can be used toward a down payment, closing costs or other mortgage expenses. Applicants must be purchasing their first home in Utah, but may still be eligible if they previously owned property in another state. Grant recipients are permitted to work with any lender authorized to originate mortgages in the state of Utah and may choose any conforming loan program, including VA, FHA, Fannie Mae or Freddie Mac loans. 

Washington State Housing Finance Commission (WSHFC) Veterans Down Payment Assistance Loan Program

• The WSHFC Veterans Down Payment Assistance Loan Program provides financial support for Veterans (honorably discharged), honorably discharged former members of the Washington National Guard and Reserve, and military spouses who never remarried and dependent children of deceased Veterans. Program participants can receive up to $10,000 and a 3% mortgage rate. Even though DPA must be repaid, payments can be deferred for the lifetime of the loan (up to 30 years). Borrowers must be first-time homebuyers or buying in a targeted area. This program also can be combined with WSHFC’s Home Advantage or House Key first mortgage loan programs.

These initiatives, and many more like them nationwide, provide our servicemen and servicewomen with the opportunity to achieve affordable, sustainable homeownership on the homefront. 

Since 2008, DPR has helped mortgage lenders, real estate agents and multiple listing services build relationships with Veteran homebuyers by connecting them with homebuyer assistance programs built specifically with military families in mind. Individuals can search for their homebuyer assistance program eligibility for free at https://downpaymentresource.com/are-you-eligible/. 

Happy Veterans Day 2024 to all!

---

Down Payment Resource builds tools that help mortgage lenders, real estate agents, multiple listing services and consumer listing sites build relationships with homebuyers by connecting them with the homebuyer assistance they need.

To learn how Down Payment Resource can help you support homebuyers, contact us.

DPR’s Q3 2024 Homeownership Program Index (HPI) Report, which highlights the homebuyer assistance programs available each quarter to help make homeownership more accessible, has revealed some exciting findings. First, we’ve set yet another record for the number of nationwide programs with all 2,444 currently being tracked by DPR. Plus, we’ve noted an uptick in the number of programs allowing for the purchase of multifamily and manufactured housing, which helps lenders widen their inventory box.

Derived from our comprehensive DOWN PAYMENT RESOURCE® database, the HPI report highlights the latest trends in down payment assistance (DPA) programs.

Twenty-nine homebuyer assistance programs were added in Q3, for a total of 2,444 programs. That’s 192 more programs than a year ago, when we counted 2,256, an increase of 8%.

Our Q3 2024 edition of the report reveals a further increase in the availability and diversity of DPA programs, including a new breakdown of the programs that allow for the purchase of multifamily properties. Of those, we found that 777 allow for two-unit properties, 526 allow for three-unit properties, and 501 allow for four-unit properties. 

While 2,218 programs have income limits, 226 do not, a 20% increase from a year ago. This latitude may make it easier for lenders to qualify at moderate income levels who need assistance with their down payment, closing costs, or other costs of homeownership.

Program trends

The number of programs offered in Q3 2024 increased by 29 over the previous quarter, raising the total number of programs to 2,444 from 2,415. 

• 949 municipalities offered DPA programs. Municipalities represented the majority of funding sources at 949 programs, representing 39% of funding source totals for Q3 2024, up 40% from Q3 2023. Nonprofits were the second highest funding source, 21% in Q3 2023, followed by state HFAs at 19%. A few of these sources have seen steady increases from federal program funding sources including the American Rescue Plan Act (ARPA) and US Department of Health and Human Services (HHS).

Program spotlight: Riverside County American Rescue Plan Act (ARPA) First Time Home Buyer (FTHB) Program offers homebuyers a 15-year, 0% interest, deferred forgivable loan for 20% of the purchase price up to $100,000 (whichever is less). The program’s maximum home purchase price is $536,750 and income can be up to 120% the area median income (HUD limits).

• 898 programs support manufactured housing, up 15% from Q3 2023. Manufactured homes, which are built in factories and assembled at a home site, are generally considered to be an affordable housing alternative because they are cheaper to build and purchase than site-built homes, costing around $127,000 on average, compared to over $413,000 for a site-built home. 

Program spotlight: The Champlain Housing Trust Manufactured Home Down Payment Loan program offers a $40,000, 0% deferred, forgivable loan with no sales price limits. The program is open to first-time and repeat buyers; however, income is limited to 120% of the HUD AMI limits. 

• 1,455 programs are for first-time homebuyers, a 7% increase from 1,360 Q2 2023, while 22 programs target first-generation buyers, a 5% increase from 921  in Q2 2024. First-time and first-generation homebuyers have been singled out by the Harris Presidential campaign, which proposes to provide $25,000 down-payment assistance to first-time homebuyers who have paid rent on time for two years, with more generous support for qualifying first-generation homeowners. The proposal stems from an idea the Biden-Harris administration presented earlier this year, which called on Congress to implement $25,000 in down-payment assistance exclusively for 400,000 first-generation buyers, or first-time buyers whose parents weren’t homeowners, and a $10,000 tax credit for first-time buyers.

Program spotlight: Minnesota Housing Finance Agency’s First-Generation Homebuyer Loan offers homebuyers up to $35,000 in the form of a 20-year, 0% deferred, forgivable loan. Half of the loan is forgiven at 10-years and the rest after 20. Purchase price limits range from $498,257 to $659,550 and income limits range from $111,800 to $142,800.

• Using DPA for purchase of a multi-family property grew by another 7% this quarter, so we’ve subdivided how we track these programs. While all 777 allow purchasing 2-unit properties, 526 allow 3 units and 501 allow for four. Typically, the buyer must reside in one of the units but can rent the others, allowing them to be both a buyer and an investor. 

Program spotlight: The City of Haverhill’s First Time Homebuyer Downpayment Assistance Program offers up to $15,000 as a 5-year, 0% deferred, loan that’s forgivable at 20% per year. Purchase price limits range from $498,000 to $939,000 and income limits range from $68,500 to $129,100.

Breakdown of new programs

Here is a breakdown of the homebuyer assistance programs added since Q2 2024 by assistance type:

• Below Market Rate (BMR)/resale and grant programs saw the largest quarterly growth at 8%. Grant assistance programs grew by 7% and other homebuyer assistance programs grew 6%.
• Energy Efficiency programs grew by 25%, surviving (military) spouse programs increased by 14%, and Native American programs increased by 5%.

Breakdown of all programs

Overall, the breakdown of homebuyer assistance programs available by type was virtually the same as the previous quarter. 

• Of the 2,444 homebuyer assistance programs:
  • 81% of programs are currently funded.
  • 10% of programs are currently inactive.
  • 4% of programs have a waitlist for funding.
  • 5% of programs are temporarily suspended.
• 73% of programs in the database are for down payment or closing cost assistance. 
• 10% of programs are first mortgages.
• 3% of programs are Mortgage Credit Certificates (MCCs).
• 14% are other program types.
• 60% of programs are for first-time buyers, while 40% allow repeat buyers.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. You can also download the full infographic.

Down Payment Resource builds tools that help mortgage lenders, real estate agents, multiple listing services and consumer listing sites build relationships with homebuyers by connecting them with the homebuyer assistance they need.

To learn how Down Payment Resource can help you support homebuyers, contact us.

Methodology

Published quarterly, DPR’s HPI surveys the funding status, eligibility rules and benefits of U.S. homebuyer assistance programs administered by state and local housing finance agencies, municipalities, nonprofits and other housing organizations. DPR communicates with over 1,300 program providers throughout the year to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates (MCCs) and affordable first mortgages, in the DOWN PAYMENT RESOURCE® database.

DPR’s Q2 2024 Homeownership Program Index (HPI) Report, which highlights the homebuyer assistance programs available each quarter to help make homeownership more accessible, has revealed some exciting findings. First, there are now more programs than ever with 2,415 currently being tracked by DPR, plus we’ve noted there are more program resource agencies, with 29 added in Q2 2024, totaling 213 more than we had in our database at this time last year.

Derived from our comprehensive DOWN PAYMENT RESOURCE® database, the HPI report highlights the latest trends in down payment assistance (DPA) programs.

Forty-two homebuyer assistance programs were added in Q2, for a total of 2,415 programs. That’s 213 more programs than a year ago, an increase of 11% —  the largest annual jump since DPR began reporting on this data in Q3 2020. Along with the increase in programs came an increase in agencies supporting them, which grew from 1,273 last quarter to 1,302 in Q2 2024. 

Our Q2 2024 edition of the report reveals an increase in the availability and diversity of DPA programs, including a new breakdown of the 724 programs that allow for the purchase of multifamily properties. Of those, we found 724 allow for two-unit properties, 491 allow for three-unit properties and 466 allow for four-unit properties. 

While 2,193 programs have income limits, 222 do not, a 27% increase from a year ago. 

Program trends

The number of programs offered in Q2 2024 increased by 42 over the previous quarter, raising the total number of programs to 2,415. 

• Federal funds are being leveraged by state and local agencies to help struggling homebuyers. Two hundred and seventy-five programs are funded by Community Development Block Grants, using allocations from HUD, up 14% from Q2 2023. The US Department of Health and Human Services (HHS) provides funding for 31 programs, a 19% increase from last quarter, while 24 programs provide funding through the American Rescue Plan Act (ARPA) stimulus plan, a 26% increase from last quarter. 

Program spotlight: New Bedford, MA’s Office of Housing and Community Development has enhanced its first-time homebuyer program with ARPA funds to provide first-time buyers with up to $25,000 in down payment and closing cost assistance, with additional funds available for New Bedford city employees. 

• Programs for first-generation buyers are gaining traction. Twenty-one programs target first-generation buyers, a 133% increase from Q1 2024. First-generation homebuyers are less likely to receive financial assistance from their parents for a downpayment and other upfront home-buying costs. This lack of generational wealth gleaned through homeownership is thought to contribute to wealth disparities nationwide.

Program spotlight: The Homeport & Federal Home Loan Bank (FHLB) of Cincinnati – Rise Up Program offers first-generation buyers a $25,000 Grant with a five-year retention agreement. Buyers must self-certify that they are a first-generation homebuyer because either their custodial parent(s) and/or legal guardian(s) have never owned a home in the United States, or the applicant was in the foster care system. The grant may be combined with other local, state and federal funding sources and with the FHLB Cincinnati’s Community Investment Cash Advance Programs.

• We found continued momentum for purchase of manufactured homes, the most abundant source of unsubsidized affordable housing in the United States. Eight hundred eighty-two  programs allow for the purchase of a manufactured home, up 3% from the previous quarter. These factory-built houses offer a fast way to boost inventory of smaller, entry-level homes needed by first-time and low-to-moderate income (LMI) buyers as America struggles to meet its affordable housing demand.

Program Spotlight: The Broward County Homebuyer Purchase Assistance (HPA) Program in Florida is a first-come, first-served program with limited funding. The program offers up to $80,000 in the form of a deferred 15-year forgivable loan on existing or new construction properties purchased with fixed-rate 15 or 30 year mortgages. Household income must be at or lower than 80% of HUD’s AMI. Funds can be used toward down payment, closing costs, a permanent rate buydown, MI premiums, UFMIP and guarantee fees.

• Using DPA for purchase of a multi-family property continues to grow so we’re subdividing how we track these programs. While all 724 allow for 2 units, 491 allow 3 units and 466 allow for four. Typically, the buyer must reside in one of the units but can rent the others, allowing them to be both a buyer and an investor. 

Program spotlight: The Texas State Affordable Housing Corporation offers Mortgage Credit Certificates (MCCs) for first-time and repeat buyers purchasing an existing two, three- or four-unit property provided one of the units will be occupied by the borrower and the property has been occupied for residential purposes for at least five years. Eighty-five programs in DPR’s database are MCC programs, offering a federal tax credit that helps first-time homebuyers with low or moderate incomes pay a portion of their mortgage interest, up to a maximum of 20%. 

Breakdown of new programs

Here is a breakdown of the homebuyer assistance programs added since Q1 2024 by assistance type:

• Below Market Rate (BMR)/resale and grant programs saw the largest quarterly growth at 12% each.
• Housing choice voucher programs grew by 9% and other homebuyer assistance programs grew 7%.

Breakdown of all programs

Overall, the breakdown of homebuyer assistance programs available by type was virtually the same as the previous quarter. 

• Of the 2,415 homebuyer assistance programs:
  • 82% of programs are currently funded.
  • 9% of programs are currently inactive.
  • 4% of programs have a waitlist for funding.
  • 5% of programs are temporarily suspended.
• 73% of programs in the database are for down payment or closing cost assistance. 
• 9% of programs are first mortgages.
• 4% of programs are MCCs.
• 14% are other program types.
• 60% of programs are for first-time buyers, while 40% allow repeat buyers.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. You can also download the full infographic.

Down Payment Resource builds tools that help mortgage lenders, real estate agents, multiple listing services and consumer listing sites build relationships with homebuyers by connecting them with the homebuyer assistance they need.

To learn how Down Payment Resource can help you support homebuyers, contact us.

Methodology

Published quarterly, DPR’s HPI surveys the funding status, eligibility rules and benefits of U.S. homebuyer assistance programs administered by state and local housing finance agencies, municipalities, nonprofits and other housing organizations. DPR communicates with over 1,300 program providers throughout the year to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates (MCCs) and affordable first mortgages, in the DOWN PAYMENT RESOURCE® database.

In a quarter where home prices year-over-year (YoY) jumped 6%, our Q1 2024 Homeownership Program Index (HPI) Report highlights the homebuyer assistance programs available to help make homeownership more accessible. Derived from our comprehensive DOWN PAYMENT RESOURCE® database, the report highlights the latest trends in down payment assistance (DPA) programs.

Our Q1 2024 edition reveals an increase in the availability and diversity of DPA programs, including an increase in programs supporting the purchase of manufactured and multifamily homes. 

Seventy-nine homebuyer assistance programs were added in Q1, for a total of 2,373 programs. That’s 204 more programs than a year ago, an increase of 9% —  the largest annual jump since DPR began reporting on this data in Q3 2020. Along with the increase in programs came an increase in agencies supporting them, which grew from 1,238 last quarter to 1,273 in Q1 2024. 

We also found upticks in programs supporting the purchase of affordable housing, including manufactured and multi-family housing. 856 programs are now available for manufactured housing, up from 703 last year, a 22% YoY increase. In Q1 2023, 647 programs allowed for purchase of a multi-family property. That number in Q1 2024 is 707, an increase of 9% YoY.

While 2,156 programs have income limits, the percentage that didn’t grew 11% from the previous quarter and 24% YoY. The report also revealed the evolving dynamics of Below Market Rate/resale programs, from 37 in Q1 2023 to 77 in Q1 2024, a 108% YoY increase.

Program Trends

The number of programs offered in Q1 2024 increased by 79 over the previous quarter, raising the total number of programs to 2,373. 

• 856 programs allow for the purchase of a manufactured home, up 6% from the previous quarter. Allowing buyers to use DPA funds to purchase manufactured housing opens the door of affordability for many. The average cost of a manufactured or mobile home is $127,250 or $85/square foot, while the average cost of a site-built home is $413,160 or $167.87/square foot. 

Program Spotlight: The City of Tucson/Pima County HOME Down Payment Assistance Program offers buyers of manufactured homes a minimum DPA of $1,000 and a maximum of up to 20% of the purchase price. Buyers must have incomes at or below 80% of the HUD Area Median Income (AMI). Home prices are also capped at $302,100 for existing homes and $358,835 for newly constructed homes. 

• 707 programs allow for the purchase of a multi-family property, up 3% from the previous quarter. Using DPA to purchase a multi-family property has become a very hot topic lately, and about 30% of the programs in DPR’s database allow funds to be used for a multi-family investment (-4 units). Typically, the buyer must reside in one of the units but can rent the others, allowing them to be both a buyer and an investor. 

Program Spotlight: The NeighborWorks Southern Colorado Down Payment Assistance Program offers up to 10% of the purchase price to buyers of  multi-family properties. The funds may be combined with other NWSOCO DPA programs, such as the NWSOCO State Funding DOLA program. The program is open to any buyers (not just first-time homebuyers) who have incomes at or below 100% of the HUD AMI.

• Seventy-seven programs are Below Market Rate (BMR)/resale DPA programs, up 7% from the last quarter and 108% from Q1 2023. BMR/resale programs are often “silent” second loans that require no monthly payments for 30 years or until the property is sold. Local jurisdictions set home sale prices for these programs in compliance with targeted income levels to assist households with incomes that range from 80% to 120% of the AMI. 

Program Spotlight: The City of Novato Below Market Rate (BMR) Homeownership Program is open to buyers with incomes up to 120% of the HUD AMI. Buyers can use conventional or FHA financing. The home is sold below the market rate with a lien (second mortgage) in place to cover the difference between market value and BMR price. 

192 programs are “incentive” programs, meaning they target a segment of homebuyers by profession or ethnicity. In Q1 2024, there was a 13% increase in programs YoY for Native American homebuyers. In comparison to white households in states with federally recognized reservations, Native American borrowers have lower incomes and credit scores. DPA can make a significant difference in helping lenders qualify these homebuyers.

• 189 programs targeted Veterans, a slight drop from the number available in Q1 2023.

Breakdown of New Programs

Here is a breakdown of the homebuyer assistance programs added since Q4 2023  by assistance type:

• Grant programs saw the largest quarterly growth, adding 17 new programs.
• There were 20 new combined assistance programs and five new deed restriction programs.

Breakdown of All Programs

Overall, the breakdown of homebuyer assistance programs available by type was virtually the same as the previous quarter. 

• Of the 2,373 homebuyer assistance programs:
  • 82% of programs are currently funded.
  • 9% of programs are currently inactive.
  • 4% of programs have a waitlist for funding.
  • 6% of programs are temporarily suspended.
• 74% of programs in the database are for down payment or closing cost assistance. 
• 9% of programs are first mortgages.
• 3% of programs are Mortgage Credit Certificates (MCCs).
• 13% are other program types.
• 60% of programs are for first-time buyers, while 40% allow repeat buyers.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. You can also download the full infographic.

Down Payment Resource builds tools that help mortgage lenders, real estate agents, multiple listing services and consumer listing sites build relationships with homebuyers by connecting them with the homebuyer assistance they need.

To learn how Down Payment Resource can help you support homebuyers, contact us.

Methodology

Published quarterly, DPR’s HPI surveys the funding status, eligibility rules and benefits of U.S. homebuyer assistance programs administered by state and local housing finance agencies, municipalities, nonprofits and other housing organizations. DPR communicates with over 1,300 program providers throughout the year to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates (MCCs) and affordable first mortgages, in the DOWN PAYMENT RESOURCE® database.

In an era marked by unprecedented challenges in housing affordability, we’ve published our Q4 2023 Homeownership Program Index (HPI) Report to highlight the homebuyer assistance programs available to help make homeownership more accessible. Derived from our comprehensive DOWN PAYMENT RESOURCE® database, this report highlights the latest trends in down payment assistance (DPA) programs in 2023.

Our Q4 2023 edition reveals an increase in the availability and diversity of DPA programs, including an increase in programs supporting the purchase of manufactured and multi-family homes and the evolving dynamics of Mortgage Credit Certificate (MCC) programs. Read on to explore how DPA is evolving in the U.S.

Program Trends

The number of programs offered in Q4 2023 increased by 135 over the previous year, raising the total number of programs to 2,294. 

• 804 programs allow for the purchase of a manufactured home, up 20% from the previous year. According to the Manufactured Housing Institute, an industry advocacy group, the average cost of a manufactured or mobile home is $127,250 or $85/square foot, while the average cost of a site-built home is $413,160 or $167.87/square foot. Depending on the local housing market, that can make a big difference. In California, for example, nearly half (47%) of manufactured housing is affordable to very low-income households, compared to just 18% of the state’s housing stock overall. Because manufactured housing opens up homeownership to many low- and moderate-income buyers, we think this trend will pick up speed in the coming years. And if you’re wondering if mobile homes and manufactured homes are the same thing — yes, they are. According to HUD, a factory-built home prior to June 15, 1976, is a mobile home and one built after June 15, 1976 is a manufactured home.

Program spotlight: The City of Napa (CA) offers a down payment assistance program specifically for buyers of a mobile or manufactured home who are first-time homebuyers. The program offers buyers up to $58,000 or 30% of the purchase price, whichever is less, and is in the form of a 20-year deferred, forgivable loan. The buyer’s income needs to be 80% or less of the Area Median Income (AMI), which for Napa in 2022 (the most recent year available) was $105,809.

• 686 programs allow for the purchase of a multi-family property, up 8% from the previous year. Using DPA to purchase a multi-family property has become a very hot topic lately, and about 30% of the programs in DPR’s database allow funds to be used for a multi-family investment (1-4 units). Typically, the buyer must reside in one of the units but can rent the others, allowing them to be both a buyer and an investor. These assistance programs often require the borrower to complete homeownership and landlord-prep classes, which we think will help ensure long-term stability for new homeowners.

Program spotlight: The City of Chicopee (MA) funds a multifamily incentive program that pays $16,000 toward a buyer’s down payment or closing costs to purchase a multi-family (three rental units and the owner’s unit) property within the city. The loan is structured as a 16-year forgivable loan with $1,000 forgiven annually. 

• 78 programs are mortgage credit certificate (MCC) programs, a 19% drop from the previous year. The MCC program is a homebuyer assistance program designed to help lower‐income families afford homeownership. The program allows homebuyers to claim a dollar‐for‐dollar tax credit for a portion of mortgage interest paid per year, up to $2,000. The remaining mortgage interest paid may still be calculated as an itemized deduction. MCC programs were highly popular up until about 2020, when our data showed a cooling off as state housing finance agencies have exceeded their capacity to offer the bond-funded MCC programs or don’t want to handle them administratively. 

Breakdown of New Programs

Here is a breakdown of the homebuyer assistance programs added since Q4 2022  by assistance type:

• Rehab assistance programs saw the largest YoY growth, rising 300% since the same quarter in 2022.
• Below market value (BMR)/resale restriction programs saw the second largest growth with a rise of 112%.
• Matched savings programs rose 34%.
• Grant programs rose 13%.

Breakdown of All Programs

Overall, the breakdown of homebuyer assistance programs available by type was virtually the same as the previous quarter. 

• Of the 2,294 homebuyer assistance programs:
  • 81% of programs are currently funded.
  • 9% of programs are currently inactive.
  • 4% of programs have a waitlist for funding.
  • 6% of programs are temporarily suspended.
• 74% of programs in the database are for down payment or closing cost assistance. 
• 10% of programs are first mortgages.
• 3% of programs are Mortgage Credit Certificates (MCCs).
• 13% are other program types.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. You can also download the full infographic.

---

Down Payment Resource has crafted tools to help mortgage lenders, real estate agents and multiple listing services build relationships with homebuyers by connecting them with the homebuyer assistance they desire.

To explore the best option for your business, contact us.

By partnering with the Atlanta Neighborhood Development Partnership, DPR is making the holidays a little merrier for one local homebuyer working with the agency

ATLANTA, Ga., Dec. 18, 2023 — Down Payment Resource (DPR), the housing industry’s leading technology for connecting home buyers with homebuyer assistance programs, today announced a $10,000 donation to the Atlanta Neighborhood Development Partnership to be used as a grant to help an eligible homebuyer working with the local nonprofit housing agency.

“Atlanta is ranked first in home price appreciation (68.6%) and fourth in rent increases (30%) according to data reported by the Atlanta Regional Commission data, factors that make it even harder for first-time homebuyers to get their foot in the door,” said DPR Founder and CEO Rob Chrane. “We are proud to partner with ANDP to help a local homebuyer have a homeownership stake in their community. We want to do all we can to tip the scales in favor of homeownership, particularly among traditionally underserved buyers.”

ANDP develops, finances, and advocates for affordable housing that promotes racial equity and healthy communities where families thrive. The grant funded by DPR is intended for a buyer whose income is at or below 80 percent of the area median income (AMI) and not receiving additional financial assistance from ANDP. The funds can be used for down payment or closing costs (including a rate buydown) on the purchase of an ANDP property. 

“We are pleased to receive donations year-round, but there’s something special about gifts received during the holidays that just makes this gift very special. We appreciate the ongoing support of DPR, especially in these times when buying a home may seem out of reach for many,” said John O’Callaghan, president and CEO of ANDP. “Gifts like these restore hope for our clients and help them take that all-important step toward building generational wealth through homeownership.”

About ANDP:

ANDP was created in 1991 as a result of the merger of the Metropolitan Atlanta Chamber of Commerce’s Housing Resource Center and the Atlanta Economic Development Corporation’s Neighborhood Development Department. The impetus for ANDP’s creation was to address the diminishing supply of affordable housing in the Metropolitan Atlanta region as well as to help reclaim declining neighborhoods in its core. Throughout its history, ANDP has supported the creation of more than 11,000 units of housing for people of low-to-moderate incomes. For more information, visit the ANDP Homes website.

About Down Payment Resource:Down Payment Resource (DPR) is the housing industry authority on homebuyer assistance program data and solutions. With a database that tracks more than 2,200 programs and toolsets for mortgage lenders, multiple listing services and API users, DPR helps housing professionals connect homebuyers with the assistance they need. DPR frequently lends its expertise to nonprofits, housing finance agencies, policymakers, government-sponsored enterprises and trade organizations seeking to improve housing affordability. Its technology is used by five of the top 10 retail mortgage lenders by volume, three of the four largest real estate listing websites and 600,000 real estate agents. For more information, visit https://downpaymentresource.com/.

---

Down Payment Resource has crafted tools to help mortgage lenders, real estate agents and multiple listing services build relationships with homebuyers by connecting them with the homebuyer assistance they desire.

To explore the best option for your business, contact us.

In 2023 many homebuyers found it tough to compete in a housing market with increased demand, high interest rates and home prices and limited supply. 

We think this makes down payment assistance (DPA) more important than ever. As we look back at 2023, we’re proud of the growth and strategic changes we’ve made to bring current information on more than 2,200 programs to millions of consumers.

Industry Accolades

We didn’t stand alone in recognizing the difference some help with a down payment, closing costs or other fees have in helping more people purchase a home. 

Throughout the year, we received very positive feedback from customers and partners that our tools are helping them make a difference in the lives of homebuyers. 

We were also recognized as a company and individually for our efforts by professional organizations and leading publications, including:

• The Mortgage Bankers Association, which honored our Founder and CEO Rob Chrane with the prestigious MBA NewsLink Tech All-Star Award
• Inc., which recognized DPR on its Inc. 5000 list of the nation’s fastest-growing private companies
• PROGRESS in Lending Association, which recognized our Director of Marketing Melinda Harris on its list of Sales, Marketing and Public Relations Trailblazers
• National Mortgage Professional (NMP), which named Chrane an Industry Titan

Q1 Highlights: Local Focus, National Reach

To kick off the year, we turned a spotlight on DPA programs in our own backyard by reporting on the 46 DPA programs available to help metro Atlanta home buyers. In addition, we gifted one of our local housing agencies with $10,000 to help an eligible first-time homebuyer.

We were pleased to find our Q1 Homeownership Program Index (HPI) report showed a 0.5% uptick in the number of homebuyer assistance programs from the previous quarter. While some would assume these programs are limited to first-time buyers, they are not. In fact, many are open to repeat buyers such as the City of Dallas’ Anti-displacement Homebuyer Assistance Program (DHAP 10), which provides down payment support to low- and moderate-income Dallas residents who have lived in city limits for at least 10 years whether they’re buying their first home or their fifth. 

We also drew attention to the increasing number of incentivized programs that offer assistance to select groups like veterans and military service members, firefighters, teachers and healthcare workers, such as the Holland (Michigan) Public Schools Teachers Live Here Program, which provides up to $25,000 in forgivable funds over five years for eligible educators.

Q2 Highlights: Program Numbers Continued to Rise Mid-year

Our Q2 HPI report noted another 0.5% increase in the overall availability of homebuyer assistance programs and made special mention of municipality-administered programs, which comprise the bulk (42.2%) of all DPA programs. A notable example is the City of Madison’s Home-Buy The American Dream (HBAD) program, which provides up to $35,000 in down payment and closing cost assistance in the form of a deferred, silent second mortgage that isn’t due until certain conditions are met, such as selling the home or refinancing the loan. 

We also noted the 18% increase in state housing initiatives partnerships (SHIP) like the Clay County SHIP Purchase Assistance Program provides people purchasing a home in Clay County, Fla., up to $15,000 in DPA in the form of a 30-year deferred, forgivable soft second. Provided all program conditions are met, borrowers do not have to repay the loan at the end of its term. 

Q3 Highlights: New Programs Continued to Roll Out in the Fall as Interest Rates Peaked

While Q3 2023 was marked by interest rates topping 20-year highs, our reporting found that program administrators responded swiftly by rolling out 54 new DPA programs and more flexibility around how the funds are used, including allowances for funding buydowns to lower interest rates temporarily and other monthly payment reduction strategies. 

For instance, Tenfold’s York Homebuyer Assistance Program offers up to $10,000 in down payment assistance (DPA) to first-time homebuyers purchasing homes in York County and York, Penn. The assistance comes as a 0% interest, silent second mortgage. The loan is fully forgiven over a five-year term on a prorated basis, provided all program conditions, such as owner-occupancy, are met. 

DPA Trends Continue to Address Affordability Challenges

During the year, we shined a light on programs for groups of people who may have felt disenfranchised by the housing finance system in the past, such as people with disabilities, Native American homebuyers, Black homebuyers and members of the military.

We added many new customers throughout the year, and, in September,  we were proud to announce the onboarding of six new lenders — Elevations Credit Union, Embrace Home Loans, Homeowners Financial Group, HomeStreet Bank, RWM Home Loans and a regional bank. This significant milestone reflects the growing need for solutions that promote accessible and sustainable homeownership.

As we close out 2023, we continue to delve into the data collected from our database to unveil significant developments and emerging patterns in homebuyer assistance programs across the United States. Our database is the largest collection of program information, spanning all 50 states. We monitor each program monthly to ensure  accuracy and funding availability.

Based on our canvassing so far, we anticipate a modest rise in the number of available programs from additional funding sources in the fourth quarter and we think more programs will offer flexibility so borrowers can use DPA to pay for reducing their interest rate, mortgage insurance premiums and fees associated with FHA and VA mortgages. 

As evidenced in our quarterly reports and other outreach, the need for homebuyer assistance has never been greater. We are pleased to be the leading source in connecting our customers and their customers with the assistance homebuyers need to start building generational wealth through homeownership. We’ve been doing this since 2008, and we give it our all every day. We want to thank our customers, and we look forward to doing great things together in 2024. 

(Stay tuned: Our official Q4 report comes out in January!)

---

Down Payment Resource has crafted tools to help mortgage lenders, real estate agents and multiple listing services build relationships with homebuyers by connecting them with the homebuyer assistance they desire.

To explore the best option for your business, contact us.

Four times a year, we release a Homeownership Program Index (HPI) report where we delve into the data collected from our DOWN PAYMENT RESOURCE® database to unveil significant developments and emerging patterns in homebuyer assistance programs across the United States.

While Q3 2023 was marked by interest rates topping 20-year highs, our data revealed a bastion of hope in homebuyer assistance programs. Program administrators responded swiftly to the mounting home affordability crisis by rapidly rolling out new programs as well as funding buydowns and other monthly payment reduction strategies.

Fifty new agencies began offering homebuyer assistance programs last quarter, raising the number of agencies providing support for aspiring homeowners to 1,373. Moreover, the number of programs increased by 54, raising the total number of programs offered to 2,256*. As of October 25, 2023, a substantial 82% of these programs had funding for eligible homebuyers.

Program Trends

• 295 programs allow funds to be used for buydowns to lower mortgage rates. Of them: 
  • 253 programs allow for a permanent rate buydown 
  • 66 programs allow for a temporary rate buydown
    • 53 programs allow for 1-0 buydowns
    • 58 allow for 2-1 buydowns
    • 55 allow for 3-2-1 buydowns

Tenfold’s York Homebuyer Assistance Program offers up to $10,000 in down payment assistance (DPA) to first-time homebuyers purchasing homes in York County and York, Penn. The assistance comes as a 0% interest, silent second mortgage. The loan is fully forgiven over a five-year term on a prorated basis provided that all program conditions, such as owner-occupancy, are met. A minimum middle credit score of 620 is required, and recipients must take a HUD-approved homebuyer education course before entering a sales agreement. Household income and home price limits apply.

• Hundreds of programs allow funds to be used to cover certain loan and MI fees: 
  • 224 programs can be used to pay the upfront mortgage insurance premium (UFMIP) on FHA loans, the funding fee on VA loans and guarantee fees on these types of loans. 
  • 71 programs allow MI offsets so the homebuyer can reduce MI premiums upfront.
  • 241 programs can be used to pay the MI premium.

The Broward County Homebuyer Purchase Assistance Program provides up to $80,000 in purchase assistance for people buying homes in Broward County, Florida. The assistance takes the form of a forgivable second mortgage loan that is deferred at 0% interest for 15 years, provided all program requirements are met. Eligible homebuyers can make up to 80% of HUD AMI and use the funds to buy homes up to $568,557.

• Support for Native American homebuyers: 43 homebuyer assistance programs in 14 states are specifically designed to support Native Americans. While Native Americans are eligible for any of the 2,200-plus U.S. homebuyer assistance programs, these programs were specifically developed to help Native American homebuyers with down payments and/or other home-buying costs. 

The Cherokee Nation Mortgage Assistance Program provides up to $20,000 in DPA and credit coaching to members of federally recognized tribes, with priority given to citizens of the Cherokee Nation. The assistance takes the form of a 10-year forgivable loan and can be used to purchase an existing home or construct a new one. Borrowers who comply with additional requirements after close may be eligible for an additional $7,500 principal reduction. 

• 50 new agencies began offering homebuyer assistance programs. Now, 1,373 agencies administer assistance programs to aspiring homeowners, a 3.78% increase over the previous quarter.

On October 16, 2023, Davis County, Utah, launched an inaugural homebuyer assistance program to help LMI families achieve their homeownership dreams. According to its website, Davis County began offering homebuyer assistance because “home prices in the last several years have dramatically appreciated across the state,” which has created an “unprecedented challenge to homeownership.”

Breakdown of New Programs

Here is a breakdown of the homebuyer assistance programs added last quarter by assistance type:

• Below market value (BMR)/resale restriction programs saw the largest growth, with 24 programs added. Close behind, 16 second mortgage programs and 14 matched savings programs were added. Additionally, three combined assistance programs, two deed restriction, two housing choice vouchers, two rehab assistance and one other program was added.

Breakdown of All Programs

Overall, the breakdown of homebuyer assistance programs available by type was virtually the same as the previous quarter. 

• Of the 2,256 homebuyer assistance programs:
  • 82% of programs are currently funded.
  • 9% of programs are currently inactive.
  • 4% of programs have a waitlist for funding.
  • 6% of programs are temporarily suspended.
• 74% of programs in the database are for down payment or closing cost assistance. 
• 10% of programs are first mortgages.
• 3% of programs are Mortgage Credit Certificates (MCCs)
• 13% are other program types

A complete, state-by-state list of homebuyer assistance programs can be viewed here. You can also download the full infographic.

---

Down Payment Resource has crafted tools to help mortgage lenders, real estate agents and multiple listing services build relationships with homebuyers by connecting them with the homebuyer assistance they desire.

To explore the best option for your business, contact us.

*On October 25, 2023, DPR updated the way it classifies certain homebuyer assistance programs that are available to the general public but also offer expanded benefits to veterans and military personnel. As a result of the update, DPR’s total count of U.S. homebuyer assistance programs was adjusted downward; however, its breakdowns by region, assistance type and funding source remained the same. This change reflects an evolution of DPR’s reporting methodology, not a reduction in the overall availability of homebuyer assistance. DPR normalized last quarter’s data using its new counting methodology before calculating quarter-over-quarter trends.

Four times a year, we release a Homeownership Program Index (HPI) report where we delve into the data collected from our DOWN PAYMENT RESOURCE® database to unveil significant developments and emerging patterns in homebuyer assistance programs across the United States.

In our Q2 2023 HPI report, we have uncovered that for the second consecutive quarter, there has been a 0.5% increase in the availability of homebuyer assistance programs aimed at helping individuals finance their dream homes. This brings the total number of programs to an impressive 2,373. Moreover, as of July 3, 2023, a substantial 82.5% of these programs continue to offer funds to eligible homebuyers.

Breakdown of new programs

Here is a breakdown of the homebuyer assistance programs added last quarter:

• By assistance type: Similar to last quarter, community seconds saw the largest growth, with 24 programs added. Four grants, four combined assistance programs, one deed program, seven BMR/resale programs and six MCCs were also among the programs added.
• By region: There was a 1.18% increase in statewide programs, a 1.73% increase in programs supporting home purchases in defined locales and a 6.85% increase in nationwide and multi-state programs. Programs supporting homebuyers in New Mexico saw the largest percent growth of any state, increasing by 21.43%.
• By funding source: Florida’s State Housing Initiatives Partnership (SHIP) programs saw the largest cumulative growth overall with 17 programs added, a quarterly increase of 18.09%. Other funding sources that saw a notable increase were Native American Housing Assistance and Self Determination Act (NAHASDA) block grants, which increased by 4.3%, and assistance backed by the Federal Home Loan Banks (FHLB), which increased by 4.76%.

New program trends

• Municipality administered programs: Municipalities support 42.2% of all programs, more than any other type of homebuyer assistance administrator.  

The City of Madison’s Home-Buy The American Dream (HBAD) program provides up to $35,000 in down payment and closing cost assistance in the form of a deferred, silent second mortgage. This means the loan does not have to be repaid until certain conditions are met, such as selling the home or refinancing the loan. Because HBAD is also a shared appreciation program, once the loan is due, borrowers must repay the same percentage of the home value at sale as DPA borrowed at the time of purchase. While the program doesn’t limit home purchase price, borrower household income must be 80% HUD AMI or less.

• Florida State Housing Initiatives Partnerships (SHIP) programs: The number of SHIP-funded programs increased by 18.09%, a dramatic increase over the last quarter.

Clay County SHIP Purchase Assistance Program provides people purchasing a home in Clay County, Fla. up to $15,000 in DPA in the form of a 30-year deferred, forgivable soft second. Provided all program conditions are met, borrowers do not have to repay the loan at the end of its term. Borrowing households may earn up to 140% of HUD AMI. Purchase price limits apply.

• Continued incentivized program growth:  There was a 4.75% increase in incentivized programs — which are geared toward public servants such as teachers and protectors, Native Americans, people with disabilities and veterans, among others. 

The City of Canton Down Payment Assistance Program provides up to $15,000 of DPA to people buying homes in Canton, Ga. The program takes the form of a five-year deferred, forgivable soft second mortgage, which means that borrowers do not have to make payments and the loan will be fully forgiven at the end of its term provided that requirements, such as maintaining owner occupancy, are met. Borrowers may earn up to 80% of HUD AMI. Purchase price limits are $333,000 for existing homes and $361,000 for new construction homes.

Breakdown of all programs

Overall, the breakdown of homebuyer assistance programs available by type was unchanged from the previous quarter.

• Of the 2,373 homebuyer assistance programs:
  • 82.5% of all programs are currently funded.
  • 8.8% of all programs are currently inactive.
  • 3.1% of all programs have a waitlist for funding.
  • 5.6% percent of all programs are temporarily suspended.
• 75.3% of programs in the database are for down payment or closing cost assistance.
• 10.0% of programs are first mortgages.
• 3.6% of programs are Mortgage Credit Certificates (MCCs).

A complete, state-by-state list of homebuyer assistance programs can be viewed here. Homebuyer assistance programs that waive the first-time homebuyer requirement for veterans and military personnel are tracked as two separate programs to report on dedicated assistance for military buyers.

You can also download the full infographic.

---

Down Payment Resource has crafted tools to help mortgage lenders, real estate agents and multiple listing services build relationships with homebuyers by connecting them with the homebuyer assistance they desire.

To explore the best option for your business, contact us.

Each quarter, we issue a Homeownership Program Index (HPI) report that examines data from our DOWN PAYMENT RESOURCE® database to uncover noteworthy changes and trends in U.S. homebuyer assistance programs.

Our Q1 2023 HPI report revealed a 0.5% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,362. Of these programs, 83.5% had funds available for eligible homebuyers as of April 7, 2023. 

Breakdown of new programs

Here is a breakdown of the homebuyer assistance programs added last quarter:

• By assistance type: Community seconds saw the largest growth, with seven programs added. Six grants, five combined assistance programs, three deed restriction programs, three first mortgage programs, three deed programs and one rehabilitation program were also added.
• By region: There was a 2.4% increase in statewide programs, a 0.5% increase in programs supporting home purchases in defined locales and a 1.4% decrease in nationwide and multi-state programs. Programs supporting homebuyers in Pacific states saw the largest percent growth of any region, increasing by 1.5%.
• By funding source: Community Development Block Grant (CDBG) programs saw the largest cumulative growth overall with 13 CDBG-funded programs added, a quarterly increase of 5.7%. Other funding sources that saw a notable increase in the number of programs available were to-be-announced (TBA) programs, which increased by 4.3%, Florida’s State Housing Initiatives Partnership (SHIP) programs, which increased by 4.1%, and assistance backed by the California Department of Housing and Community Development (CalHome), which increased by 2.3%. 

New program trends

• Housing programs for repeat homebuyers: The number of programs that do not have a first-time homebuyer (FTHB) requirement grew to 861 in Q1 2023, a 2% increase over the previous quarter. 39.7% of all available homebuyer assistance programs now support repeat homebuyers, up from 38% in Q1 2022.

The City of Dallas’ Anti-displacement Homebuyer Assistance Program (DHAP 10) provides down payment support to low- and moderate-income Dallas residents who have lived in city limits for at least 10 years. Assistance is available to FTHBs as well as repeat borrowers. Eligible individuals can receive up to $50,000 in assistance, and there is no purchase price limit. The total household income must fall between 50% to 120% of the area median income (AMI) to qualify for support. Participants are also required to complete homebuyer education prior to receiving DPA funds.

• Programs with incentives: 11 incentivized programs were added in Q1 2023, a 3% increase over the previous quarter. There was a 4.7% increase in programs for veterans and military service members, a 5.2% increase in programs for protectors, a 5.8% increase in programs for firefighters and a 4.8% increase in the program for healthcare workers. Programs with incentives now make up 17.5% of all available programs.

The Holland Public Schools (HPS) Teachers Live Here Program provides up to $25,000 in forgivable funds over five years for eligible HPS educators. Applicants’ total household income must be below $100,000 to qualify for assistance. The Teachers Live Here program operates on a cycle-based funding system, and while FTHB status is not required to qualify, they are given priority over current homeowners. DPA recipients must remain employed in the HPS district for at least five additional years after receiving support and must purchase a home within 15 miles of HPS’ district boundaries. 

• Assistance program repayment features: Of the 2,362 down payment assistance programs nationwide, which include community seconds, grants and combined assistance programs, 86.3% offer a deferred repayment option and 57.8% are completely forgivable. 856 DPA programs are both deferred and forgivable, up from 792 in Q1 2022 — an 8.1% year-over-year increase.

The Portland Housing Center’s WELCOME HOME Gresham DPA Program offers up to $40,000 in DPA as an interest-free deferred loan, which is completely forgiven after the recipient has occupied their home for 15 years. Program eligibility is limited to those who meet the Portland Housing Center’s definition of a FTHB, which includes those who have not owned a home in the past three years, single parents and displaced homemakers. Total household income must not exceed 80% AMI for applicants to qualify, and the purchase price of the home cannot exceed $437,000.

Breakdown of all programs

Overall, the breakdown of homebuyer assistance programs available by type was unchanged from the previous quarter. 

• 75 percent of programs in the database are for down payment or closing cost assistance.
  • 84 percent of all programs are currently funded.
  • 9 percent of all programs are currently inactive.
  • 3 percent of all programs have a waitlist for funding.
  • 5 percent of all programs are temporarily suspended.
• 10.5% of programs are first mortgages.
• 3.9% of programs are Mortgage Credit Certificates (MCCs).

Other notable trends:

The share of programs receiving active funding grew to 83.5% in Q1 2023, up from 82.9% in the previous quarter. At the same time, the number of inactive programs fell by 26 to 9.1%. While there was a slight uptick in temporarily suspended and waitlisted programs, the overall number of programs being funded has continued to grow steadily for more than a year.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. Homebuyer assistance programs that waive the first-time homebuyer requirement for veterans and military personnel are tracked as two separate programs to report on dedicated assistance for military buyers.

You can also download the full infographic.

In conclusion:

The number of U.S. homebuyer and down payment assistance programs continued to grow in the first quarter of 2023, with 2,362 total programs now available. As the housing market continues its slow recovery in 2023, mortgage and real estate professionals should educate themselves and their clients about affordability programs. By illustrating the role homebuyer assistance can play in each prospective homebuyers’ wealth-building journey, housing industry players can grow their business while also expanding housing accessibility for the traditionally underserved.

Down Payment Resource has crafted tools to help mortgage lenders, real estate agents and multiple listing services build relationships with homebuyers by connecting them with the homebuyer assistance they desire.

To explore the best option for your business, contact us.

Down Payment Resource’s Q4 2022 HPI report shows how homebuyer and down payment assistance flourished despite housing market downturns

Each quarter, we issue a Homeownership Program Index (HPI) report that examines data from our DOWN PAYMENT RESOURCE® database to uncover noteworthy changes and trends in U.S. homebuyer assistance programs.

Our Q4 2022 HPI report revealed a 1.8% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,351, a net increase of 42 over the previous quarter. Of these programs, 82.9% had funds available for eligible homebuyers as of January 6, 2022.

Breakdown of new programs

Here is a breakdown of the homebuyer assistance programs added last quarter:

• By assistance type: Community seconds saw the largest growth with 27 programs added. Eight grants, three combined assistance programs, two deed restriction programs and one first mortgage program were also added.
• By region: There was a 1.2% increase in statewide programs, a 1.7% increase in programs supporting home purchases in defined locales and a 7.2% increase in nationwide and multi-state programs. Programs supporting homebuyers in New England saw the largest percent growth of any region, increasing by 4.6%.
• By funding source: For the second consecutive quarter, assistance backed by the U.S. Department of Housing and Urban Development’s HOME Investment Partnerships Program (HOME) saw the largest cumulative growth overall with 12 HOME-funded programs added, a quarterly increase of 2.7%. Other funding sources that saw a notable increase in the number of programs available were bond-funded programs, which increased by 2.1%, Florida’s State Housing Initiatives Partnership (SHIP) programs, which increased by 5.7%, and Community Development Block Grant (CDBG) programs, which increased by 2.7%. 

New program trends

• Housing programs for manufactured homes: The number of programs that support manufactured housing grew to 669 in Q4 2022, a 5% increase over the previous quarter. 31% of all available homebuyer assistance programs now support manufactured housing, up from 28% in Q4 2021 and 26% in Q4 2020.

The Vermont Champlain Housing Trust’s Manufactured Housing Down Payment (MHDP) Loan Program provides applicants with a deferred, zero-interest loan to help cover down payment and closing costs associated with the purchase of an Energy Star Rated manufactured home. MHDP loans are offered at 0% interest, and all payments are deferred until the property is sold, transferred, or refinanced. Participants must take an approved homebuyer education course to qualify for assistance.

• Programs with income limits: There was a 5.5% increase in programs where applicants’ income must fall below a specific threshold in order to qualify for assistance — growing from 1,961 in Q3 2022 to 1,990 in Q4 2022. Programs with income limits now make up 92.4% of all available programs.

The North Carolina Housing Coalition (NCHC) Homeownership Assistance Program (HAP) is a down payment and closing cost assistance program for low-to-moderate income (LMI) households that earn up to 120% of the area median income (AMI). The property must be a one or two unit primary residence located in one of the 16 counties defined by HUD as most impacted by Hurricanes Matthew and Florence. First-generation homebuyers whose parents do not currently own a home are eligible for up to $30,000 in down payment assistance and first-time homebuyers are eligible for up to $20,000. An additional 5% is provided toward closing costs.

• Assistance for multifamily communities: 33 new programs that support multifamily homebuyers and builders were added in Q4 2022. Multifamily programs now make up 29.3% of all available assistance offerings, a 5.5% increase over Q3 2022. 

The Family Housing Fund is a community collaborative that provides affordable Building Equity construction loans to support the development and rehabilitation of two-to-four unit multifamily homes homes in the Minneapolis and Twin Cities metro regions of Minnesota. The program prioritizes Black, Indigenous and People of Color building developers and homebuyers with low-to-moderate incomes. It also offers forgivable down payment assistance for qualifying homebuyers who have completed owner-occupant training.

Breakdown of all programs

Overall, the breakdown of homebuyer assistance programs available by type was unchanged from the previous quarter.

• 75 percent of programs in the database are for down payment or closing cost assistance.
  • 83 percent of all programs are currently funded.
  • 10 percent of all programs are currently inactive.
  • 3 percent of all programs have a waitlist for funding.
  • 4 percent of all programs are temporarily suspended.
• 10.4% of programs are first mortgages.
• 4.4% of programs are Mortgage Credit Certificates (MCCs).

Other notable trends:

Several new incentivized homebuyer assistance programs were added in Q4 2022, including four programs for veterans and military service members, four for firefighters, three for educators and three for protectors. Programs for Native American homebuyers and surviving spouses were also added.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. Homebuyer assistance programs that waive the first-time homebuyer requirement for veterans and military personnel are tracked as two separate programs to report on dedicated assistance for military buyers.

You can also download the full infographic.

In conclusion:

The number of U.S. homebuyer and down payment assistance programs grew steadily over each quarter of 2022, with 2,351 total programs now available. While there was a notable increase in the number of temporarily suspended programs in Q4 2022, these programs only make up 4.2% of all programs. With 83% of programs still being actively funded, homebuyer assistance remains a widely available option for homebuyers today. Mortgage and real estate professionals that want to boost revenue in this sluggish housing market can market programs like these to make homeownership more accessible and affordable to hesitant buyers in 2023.

Down Payment Resource has crafted tools to help mortgage lenders, real estate agents and multiple listing services build relationships with homebuyers by connecting them with the homebuyer assistance they desire.

To explore the best option for your business, contact us.