Veterans and Military Personnel Archives | Professionals

Down Payment Resource Highlights 61 Down Payment Assistance Programs Offering Up to $120,000 in Funds for Veterans and Service Members

Melinda Harris — Thu, 16 Nov 2023 16:07:05 +0000

DPR reports on programs from its national down payment assistance database for Veterans Day and Military Family Appreciation Month

ATLANTA, Ga., Nov. 10, 2023 — Down Payment Resource (DPR), the housing industry authority on homebuyer assistance program data and solutions, is highlighting homebuyer assistance programs to support Veterans, service members and their surviving spouses in conjunction with Veterans Day and Military Family Appreciation Month, both observed in November. While service members are eligible for any of the 2,200-plus U.S. homebuyer assistance programs, DPR found there are 61 programs offering up to $120,000 in assistance specifically developed to help them build, buy or make accessibility-related home renovations.

According to the Urban Institute, 78 percent of Veteran households were homeowners, 14 percentage points higher than the total population. Active-duty service members, who are often relocated every few years, had a homeownership rate of 43 percent. Military families are not only challenged by frequent relocation (Permanent Change of Station or PCS orders) but are struggling financially in a housing market with rising home prices and mortgage interest rates the highest seen since 2000. Results from the Blue Star Families’ Military Family Lifestyle Survey indicate that housing costs and relocation issues have become increasingly stressful and expensive for service members in recent years, making assistance with down payment and other purchasing costs even more essential.

An analysis of the 61 programs showcases the range of assistance available to promote homeownership among Veterans, active-duty service members and their surviving spouses:

Financial assistance range: The programs offer homebuyer assistance ranging from $2,000 to $120,000.

Program types: The homeownership assistance program types consist of 24 second mortgage programs, 18 affordable first mortgage programs, 15 grants, and one each below market rate (BMR)/resale restriction program, combined assistance program, voucher program and other assistance type.

Repayment features: Twenty-four programs offer forgivable assistance, provided that all program conditions, such as owner-occupancy, are met. Fifteen programs are given as gifts with no strings attached provided eligibility criteria are met.

Program eligibility: Thirty-five programs are for first-time buyers, while 34 are open to repeat buyers or provide a waiver for service members and Veterans.

“Having assistance to buy now, even when interest rates seem high, can help our service members start to build equity, enjoy a sense of community, and have an asset they can keep or sell if they receive PCS orders,” said DPR Founder and CEO Rob Chrane. “We are extremely grateful to our Veterans, service members and their families and hope these programs can unlock the doors to homeownership and all the benefits it brings.”

Individuals can search for their homebuyer assistance program eligibility for free at https://downpaymentresource.com/are-you-eligible/.

Methodology:

DPR produced homebuyer assistance program findings by analyzing its DOWN PAYMENT RESOURCE® database for programs with incentives for people with disabilities. The DOWN PAYMENT RESOURCE® database tracks the funding status, eligibility rules and benefits of all U.S. homebuyer assistance programs using data sourced from more than 1,300 housing finance agencies (HFAs), municipalities, nonprofits and other housing organizations. Homebuyer assistance programs of all types are tracked, including down payment and closing cost assistance, Mortgage Credit Certificates and affordable first mortgages.

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 500,000 real estate agents. For more information, https://downpaymentresource.com/.

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Veterans and Military Personnel Pave Affordable Paths to Homeownership with Targeted Homebuyer Assistance Programs

EP Admin — Fri, 11 Nov 2022 16:42:59 +0000

Affordable homeownership programs are on the rise, and many options specifically benefit active and veteran military members and their families. Notably, out of the more than 2,000 homebuyer and down payment assistance (DPA) programs available across the U.S., 60 feature incentives for military homebuyers, and 189 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 six affordable homeownership programs that have incentives for active military members and veterans:

Ohio Housing Finance Agency (OHFA) Ohio Heroes

The Ohio Housing Finance Agency’s (OHFA) Ohio Heroes is a first mortgage program that rewards Ohio public servants — including veterans, active duty military members, members of reserve components and surviving spouses — with a mortgage interest rate discounted by 0.25%.

Ohio Heroes can be applied to conventional mortgages as well as loans backed by the U.S. Department of Veterans Affairs (VA), Department of Agriculture (USDA) and Federal Housing Administration (FHA). Ohio Heroes loans can also be combined with OHFA’s DPA and Mortgage Tax Credit (MTC).

For more program details and eligibility requirements, visit https://myohiohome.org/ohioheroes.aspx

Florida Hometown Heroes

The Florida Hometown Heroes housing program makes homeownership more affordable for active military and veterans in addition to other frontline community workers. Qualified homebuyers receive down payment and closing cost assistance totaling 5% of the total loan amount (up to $25,000) in the form of a non-amortizing, 30-year deferred second mortgage.

Participants also receive reduced upfront fees, freedom from origination points and discount points and lower-than-market rates on FHA, VA, Rural Development (RD), Fannie Mae and Freddie Mac first mortgages. Program income limits are based on county and range from $118,950 to $153,750. Loan limits are based on county and loan program and range from $420,680 to $710,700.

For more program details and eligibility requirements, visit https://www.floridahousing.org/programs/homebuyer-overview-page/hometown-heroes

Iowa Finance Authority (IFA) Military Homeownership Assistance Program

The Iowa Finance Authority’s Military Homeownership Assistance Program empowers active service members, veterans and surviving spouses of eligible service persons with a $5,000 grant to cover down payment and closing costs. The DPA grant never has to be repaid, and participants do not have to be first-time homebuyers to qualify.

The Military Homeownership Assistance Program may be used in conjunction with IFA’s FirstHome and Homes for Iowans affordable mortgage programs. However, because DPA funding is limited based on availability, the grant is awarded on a first come, first served basis.

For more program details and eligibility requirements, visit https://www.iowafinance.com/homeownership/mortgage-programs/military-homeownership-assistance-program/

MassHousing Closing Cost Credit for Veterans and Service Members

MassHousing’s Closing Cost Credit for Veterans and Service Members is a $2,500 grant exclusively for National Guard, reserves, active-duty military, veteran and Gold Star families. The funds are applied toward closing costs and never have to be repaid.

Because there is no first-time homebuyer requirement associated with this program, it is well-suited for military members in Massachusetts who are purchasing their first home or looking to upsize or downsize from their current home.

For more program details and eligibility requirements, visit https://www.masshousing.com/home-ownership/homebuyers/homebuyer-loans

Utah Veteran First-Time Homebuyer Grant

The Utah Veteran First-Time Homebuyer Grant supports active military or veterans who retired in the last 5 years with a $2,500 grant toward 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.

For more program details and eligibility requirements, visit https://utahhousingcorp.org/homebuyer/programs/grants

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

The WSHFC Veterans Down Payment Assistance Loan Program provides financial support for honorably discharged veterans, military spouses who never remarried and dependent children of deceased veterans. Program participants can receive up to $10,000 and a 3% mortgage rate, and even though DPA must be repaid to the commission, payments can be deferred for the lifetime of a loan (up to 30 years).

Borrowers must be first-time homebuyers or buying in a targeted area. The Veterans Down Payment Assistance Loan Program can also be combined with WSHFC’s Home Advantage or House Key first mortgage loan program.

For more program details and eligibility requirements, visit https://www.wshfc.org/buyers/keyveterans.htm

In such a costly purchase market, spreading awareness about veteran and military DPA programs is a housing industry imperative. With military-focused homebuyer programs active all across the country, our servicemen and servicewomen have ample opportunity to achieve affordable, sustainable homeownership on the homefront.

Down Payment Resource helps mortgage lenders, real estate agents and loan officers, as well as multiple listing services build relationships with veteran homebuyers by connecting them with homebuyer assistance programs built specifically with military families in mind.

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