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.

Down Payment Resource’s Q3 2022 HPI report reveals a timely increase in affordable homeownership programs; meanwhile, the median U.S. down payment has reached nearly double pre-pandemic levels

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 Q3 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,309, a net increase of 36 over the previous quarter. Of these programs, 83.9% had funds available for eligible homebuyers as of October 3, 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 24 programs added. Three grants, three below market rate (BMR) resale programs, two combined assistance programs and one first mortgage program were also added.
• By region: There was a 2.9% increase in statewide programs, a 1.6% increase in programs supporting home purchases in defined locales and a 2.8% decrease in nationwide programs. Programs supporting the southern U.S. saw the largest percent growth of any region, increasing by 2.8%.
• By funding source: 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 five HOME-funded programs added, a quarterly increase of 1.2%. Other funding sources that saw an increase in the number of programs available were Florida’s State Housing Initiatives Partnership (SHIP) programs, which increased by 4.5%, and Community Development Block Grant (CDBG) programs, which increased by 0.4%. 

New program trends

• Housing programs for educators: There was a 16.4% increase in programs that offer unique benefits for educators — growing from 61 in Q2 2022 to 71 in Q3 2022.

The Teacher Next Door Program is available to all U.S. public and private school teachers, college and university professors and non-instructional school personnel. Eligible borrowers can receive up to $10,681 in down payment assistance toward any home on the market. The program also waives all up-front fees and offers participants preferred mortgage rates, a $545 appraisal credit at closing and grants up to $8,000 in some areas.

• Programs available to repeat homebuyers: Around two out of five (39.1%) programs do not have a first-time homebuyer requirement and are available for eligible repeat homebuyers. 22 programs that accept repeat buyers were added in Q3 2022, a 2.7% increase over the previous quarter.

The Home At Last program helps low- and moderate-income homebuyers buy a home in the state of Nevada. Qualified first-time and repeat homebuyers receive up to 4% assistance for a down payment and closing costs and a loan with a competitive interest rate. Eligible borrowers must have a minimum FICO credit score of 640, a debt-to-income ratio up to 50% and an annual income no greater than $150,000.

Breakdown of all programs

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

• 74 percent of programs in the database are for down payment or closing cost assistance.
  • 84 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.
  • 3 percent of all programs are temporarily suspended.
• 10.5% of programs are first mortgages.
• 4.6% of programs are Mortgage Credit Certificates (MCCs).

Other notable trends:

Twelve programs supporting manufactured housing were added this quarter, bringing the total number of programs in this category up to 30% of homebuyer assistance programs that now allow manufactured housing as an eligible property type, up 1.9% from Q2 2022 and 7.2% from Q1 2022. 

Homebuyer assistance programs that support multi-family housing purchases increased by 2.9% in Q3 2022, bringing the total number of programs in this category up to 600, or 28.3% of all available programs.

California, Florida and Texas remained the top three states with the greatest number of down payment and homebuyer assistance programs. Of the 10 states with the greatest number of homebuyer assistance programs, Maryland, Minnesota and Massachusetts saw quarterly increases in the number of programs offered over last quarter, and Virginia made the list with 57 programs.

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:

Both the number of homebuyer assistance programs and the volume of available funding increased in Q3 2022, reflecting an industry-wide push to mitigate economic conditions negatively impacting housing affordability. As mortgage rate hikes, home price appreciation, low housing inventory and economic uncertainty continue to limit homebuyer demand in Q4 2022, mortgage and real estate professionals must be prepared to educate prospective homebuyers about the variety of financial programs that can help make homeownership more accessible and affordable.  

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 Q2 2022 HPI report shows growth in homebuyer assistance programs for the third consecutive quarter despite economic conditions slightly limiting available funding

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 Q2 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,273, a net increase of 35 over the previous quarter. Of these programs, 83.5% had funds available for eligible homebuyers as of July 5, 2022. 

Breakdown of New Programs

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

• By assistance type: Four first mortgage programs, 11 combined assistance programs, five community seconds, six deed restriction programs and two Mortgage Credit Certificate (MCC) programs were added, among others. 
• By region: There was a 7.6% increase in nationwide programs, a 1% increase in programs supporting home purchases in defined locales and a 1.3% increase in statewide programs. Programs supporting the western U.S. saw the largest percent growth of any region, increasing by 2.8%.
• By funding source: To-be-announced (TBA) programs saw the largest overall growth over the previous quarter with 12 TBA-funded programs added, a quarterly increase of 5.5%. Other funding sources that saw an increase in the number of programs available were bond programs, which increased by 2.2%, and State Housing Initiatives Partnership (SHIP) programs, which increased by 1.5%. 

New Program Trends

Housing programs for veterans: There was a 4.5% increase in programs that waive the first-time homebuyer requirement for veterans — growing from 176 in Q1 2022 to 184 in Q2 2022.

The Florida Hometown Heroes Housing Program is available to public servants and frontline workers including active military and veterans, firefighters, educators, healthcare workers and childcare professionals. Eligible borrowers can receive lower than market mortgage rates in addition to down payment and closing cost assistance up to 5% of the first mortgage loan amount (maximum of $25,000) in the form of a 0%, non-amortizing, 30-year deferred second mortgage.

Program repayment features: Of the 1,542 DPA programs, which include community seconds, grants and combined assistance programs, 86.3% offer a deferred repayment option, 57.9% are completely forgivable and 51.7% are both deferred and forgivable.  

The San Diego Housing Commission’s Closing Cost Forgivable Loan offers first time homebuyers earning no more than 100 percent of San Diego’s area median income (AMI) closing cost assistance of up to four percent of the purchase price, not to exceed $10,000. The assistance is forgiven at the end of six years as long as the property remains owner occupied and there are no further encumbrances. 

Breakdown of All Programs

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

• 84 percent of all programs are currently funded.
• 11 percent of all programs are currently inactive.
• 3 percent of all programs have a waitlist for funding.
• 2 percent of all programs are temporarily suspended.
• 73.8 percent of programs in the database are for down payment or closing cost assistance.
• 10.6% of programs are first mortgages.
• 4.6% of programs are Mortgage Credit Certificates (MCCs).
• California leads the way in DPA programs, making up 15% of DPR’s database.

Other Notable Trends:

Programs that support multi-family housing purchases increased by 4.9% in Q2 2022, bringing the total number of programs in this category up to 583, or 27.9% of all available programs.

The number of programs supporting manufactured housing grew by 31, a 5.2% increase over the previous quarter, bringing the total number of programs in this category up to 625.  This marks a quarters-long trend in increased manufactured home acceptance. In Q4 2021, 27.9% of homebuyer assistance programs supported the purchase of manufactured housing. In Q1 2022 the number grew to 28.8% and in Q2 it increased again to 29.9%.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. 

In Conclusion:

The number of inactive and temporarily suspended homebuyer assistance programs grew in Q2 2022, but this minor decrease in available funding was offset by the 35 programs added in the same timeframe. With inflation reaching its highest point in 40 years and rising interest rates, expanding homeownership accessibility through down payment and closing cost assistance are important to serving homebuyers in these market conditions.  

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.

Contact us to explore the best option for your business.

Q1 2022 HPI report reveals increase in homebuyer assistance programs available to support home purchases

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 2022 HPI report revealed a 2.1% uptick in the number of homebuyer assistance programs available to help people finance homes, bringing the total number of programs available to 2,238, a net increase of 46 programs over the previous quarter. Of these programs, 84.9% had funds available for eligible homebuyers as of April 1, 2022, a 1% increase. 

Breakdown of new programs

Here is a breakdown of the 46 homebuyer assistance programs added last quarter:

• By assistance type: Two first mortgage programs, two combined assistance programs, 10 grants and 32 second mortgage programs were added.
• By region: There was a 5.7% increase in nonprofit-sponsored programs, a 2.3% increase in programs supporting home purchases in defined locales and a 1.3% increase in statewide programs.
• By funding source: State Housing Initiatives Partnership (SHIP) programs saw the largest percent growth over the previous quarter, increasing by 17.9%. Several other funding sources increased the number of programs available, with Community Development Block Programs (CDBG) increasing by 4.2%, HOME Investment Partnerships Programs (HOME) increasing by 3.8%, to-be-announced (TBA) programs increasing by 3.3% and bond programs increasing by 1.3%
• Community hero programs: Six programs for public-sector and healthcare workers were added, including two programs for veterans, educators, protectors and firefighters, and four programs for healthcare workers.

New program trends

Manufactured housing programs: An additional 31 programs now allow manufactured housing, bringing the total of manufactured housing-eligible programs to 594.

The Blue Ridge Housing Network HOMEownership Down Payment Assistance Program is one of the many programs that opened eligibility to manufactured homes in Q1 2022. It offers those purchasing a home in the Northern Shenandoah Valley region of Virginia 10% of the sales price (up to $14,999) in down payment and closing cost assistance. The assistance comes in the form of a 0% interest, non-amortizing second mortgage loan, which means there are no monthly payments and the balance is forgiven at the end of a five-year term so long as owner-occupancy and other rules are complied with.

Multi-family housing programs: Programs that support multi-family housing purchases increased slightly (0.4%), bringing the total number of programs in this category up to 566.

RIHousing introduced the FirstGenHomeRI multi-family housing program in Q1 2022. Qualified, first-time homebuyers purchasing a 1-4 unit family home in select Rhode Island communities are eligible for up to $25,000 in down payment and closing cost assistance. The assistance comes in the form of a deferred second mortgage loan at 0% interest that is fully forgiven at the end of a 5-year term provided owner-occupancy is maintained.

Breakdown of all programs

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

• 74 percent of programs in the database are for down payment or closing cost assistance.
  • 63 percent of all DPAs include payment deferral for some period of time.
  • 43 percent of all DPAs are partially or fully forgivable.
  • 38 percent of all DPAs are both deferred and forgivable.
• 10.6% of programs are first mortgages.
• 4.6% of programs are Mortgage Credit Certificates (MCCs).

Other notable trends:

It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.

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

In conclusion:

Both the number of homebuyer assistance programs and the volume of available funding increased in Q1 2022, a trend we have observed for several consecutive quarters. With affordability at its lowest since 2008 and the availability of homebuyer assistance on the rise, homebuyers need real estate agents and mortgage lenders to connect them with programs that make homeownership more affordable.

Down Payment Resource has crafted tools to help mortgage lenders, individual loan officers and real estate agents as well as 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.

Q4 2021 HPI shows growing availability of homebuyer assistance programs for first responders and other community heroes

The Q4 2021 Homeownership Program Index (HPI) covers 2,192 programs across the United States, of which 83.6% had funds available for eligible homebuyers as of January 6, 2022 (up nearly 2% from the previous quarter).  

Breakdown by Program Type

• 73 percent of programs in the database are for down payment or closing cost assistance.
  • 63 percent of all DPAs include payment deferral for some period of time.
  • 43 percent of all DPAs are partially or fully forgivable.
  • 38 percent of all DPAs are both deferred and forgivable.
• 11 percent of programs are first mortgages.
• 5 percent of programs are Mortgage Credit Certificates (MCCs).

11 percent are additional programs, including matched savings programs and Housing Choice Vouchers (HCV).

INFOGRAPHIC: Click here for more data visualizations from the Q4 2021 HPI

Spotlight: Special Incentives for Heroes

This quarter’s report highlights the increasing number of homebuyer assistance programs designed to benefit teachers, first responders, law enforcement officers, firefighters, healthcare workers and other providers of critical community services. These programs accounted for nearly 9% of all homebuyer assistance programs available in Q4. Another 11% of programs offer benefits for veterans, members of the military and surviving spouses.

Homebuyer programs with special incentives for community servants have been available in markets across the country for decades. These can be standalone programs or provisions that add special benefits or more flexible eligibility requirements when community heroes apply for homebuyer programs that are also open to other applicants. Program providers may structure these programs to help encourage homeownership in a revitalization area, help community heroes to live close to where they work, and help recruit and retain key service personnel. To qualify for a homeownership program, both the buyer and the property must meet certain criteria, which will vary by program.

Here are some examples of homebuyer programs available to community heroes in Q4 2021:

• The CalHFA MyHome program offers a deferred-payment loan to assist with down payment and/or closing costs with a cap of $15,000. CalHFA will waive the $15,000 loan amount cap for qualified CA fire department employees and CA school employees.
• The Washington State Housing Finance Commission (WSHFC)  Veterans Down Payment Assistance Loan Program enables qualified Washington State veterans to receive up to $10,000 to help with down payment assistance.
• New York veterans can take advantage of the State of New York Mortgage Agency (SONYMA) Home for Veterans (HFV) program. This program is available to active service members, veterans and their spouses or co-borrowers and offers up to $15,000 in down payment assistance.
• The Jefferson Parish Finance Authority (JPFA) Heroes to Homeowners program offers a $2,500 non-repayable grant for education professionals, first responders, healthcare professionals, veterans and active military personnel.
• The Utah Housing Corporation (UHC) Veteran First-Time Homebuyer Grant is for members of the military or veterans who separated in the last five years and are first-time Utah homebuyers. The program offers up to $2,500 in down payment help and does not require repayment.
• The Tennessee Housing Development Agency (THDA) Homeownership for the Brave program provides special benefits to veterans and members of the military, such as a reduced interest rate and no first-time homebuyer requirement.

Community heroes may also benefit from special savings and rebates from Homes for Heroes when they buy, sell or refinance a home.

Other key findings from the Q4 2021 report include:

• Funding levels are on the rise. 84% of programs had funds available for eligible homebuyers. That level of funding reflects a nearly 2% increase from Q3 2021.
• Three out of four programs (73%) focus on helping homebuyers with down payments and/or closing costs. This figure includes repayable, partially forgivable and fully forgivable programs. Other major categories of assistance include affordable first mortgage programs (11%), Mortgage Credit Certificates (5%), matched savings programs and Housing Choice Vouchers.
• Assistance is available for repeat homebuyers and landlords. Approximately 38% of programs do not have a first-time homebuyer requirement. In addition, 27% of programs allow buyers to purchase a multi-family property as long as the buyer occupies one of the units. 
• Availability varies by location. Three out of four (74%) programs are targeted to properties in specific locales such as cities, counties or neighborhoods, with the balance of programs available statewide through state housing finance agencies. The states with the most homebuyer assistance programs are California, Florida and Texas.
• Support for manufactured housing is increasing. While homebuyer assistance programs have historically favored site-built homes, as of Q4, 28% of programs allow manufactured housing as an eligible property type, up nearly 2% from the previous quarter.

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 1,200 program administrators 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 and affordable first mortgages, in the DOWN PAYMENT RESOURCE® database.