Veterans Archives - Down Payment Resource

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

Melinda Harris — Thu, 16 Nov 2023 16:20:46 +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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6 Affordable Homeownership Programs Paving Paths to Homeownership for Veterans and Military Personnel

Melinda Harris — Fri, 11 Nov 2022 19:08:01 +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

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.

Search for programs in your area and get connected with a mortgage lender today to see if you’re eligible.

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Down Payment Help for Our Community Heroes

EP Admin — Tue, 25 Jan 2022 12:00:00 +0000

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.

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Agent Builds Veteran Homebuyer Resources He Wishes He Had

EP Admin — Fri, 09 Nov 2018 21:09:43 +0000

After 10 years of service, three deployments and 500 missions in the U.S. Army, Austin-based REALTOR® Raoul Rowe transitioned to civilian life, earned an IT degree and became a licensed REALTOR®. Today, he’s using his personal experience to help more veterans transition back home and succeed in their path to homeownership.

“It felt like you finished your military service with a bag of benefits and a simple ‘good luck.’ There was no one to really fully guide you through critical next steps of transitioning, including buying a home,” said Raoul.

After going through the process of buying his own home, Raoul ran into several challenges and hurdles — even losing money while trying to use his benefits.

“I kept thinking, man, there’s got to be a better way,” said Raoul. “Now I teach veterans how to purchase a home with valuable Texas veteran benefits and how to navigate that process more efficiently.”

Education is number one

Education is Raoul’s cornerstone Ready Front Real Estate. Raoul created an educational video series for buyers delivered to them after they sign up on his website. The video series includes shopping for a mortgage and searching for down payment assistance programs. Plus, his buyers have homework to complete after each video.

“I know where these veterans are coming from. I built an educational program I wished I had when I was buying a home. I really want to offer my veteran buyers a full-service education,” said Raoul.

He learned quickly that buyers first need to investigate homeownership programs for which they may be eligible. Through his membership with the Austin Board of REALTORS®, Raoul has access to Down Payment Resource tools to help connect his buyers with down payment help. He directs his buyers to search for programs through his personal down payment program landing page. When buyers complete the form, he reviews results with them and adds them to email campaigns to keep them moving along in the home buying process.

He explains to his buyers that lenders participate in different programs and encourages them to review with a lender who will recognize those opportunities. Raoul also cultivates relationships with lenders and learns what programs they can offer.

Texas Operation Giveback

Raoul took his educational focus one step further and set up a nonprofit for veterans called Texas Operation Giveback, INC. that is specifically geared toward educating veterans on homeownership and fiscal responsibility while giving back to the community. He works with groups like the Texas Veterans Land Board and other finance and real estate experts to provide free trainings. Buyers who complete the trainings and who have served are eligible for his Real Estate Rewards program that provides cash back — directly from Raoul’s commission — when they close on their home.

Raoul says he’s just doing what’s right by giving back and educating veteran buyers with the knowledge he’s gained. And, he’s engaging others in the real estate community to serve alongside him.

After his own military service, Raoul is finding new ways to serve those who serve our country, as well as others in the community. He even joined our Down Payment Resource team on a Habitat for Humanity Build Day in Austin.

We’re cheering you on, Raoul!

Are you a real estate professional interested in learning more about how to use down payment assistance in your business? Register for one of our upcoming webinars.

Do you have a down payment assistance success story to share? Contact us at info@downpaymentresource.com.

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Down Payment Help for Military and Veterans; Q1 Homeownership Program Index

EP Admin — Mon, 22 May 2017 14:08:04 +0000

In honor of National Military Appreciation Month, our First Quarter 2017 Homeownership Program Index highlights the important programs available to veterans and members of the military.

The number of total down payment programs decreased to 2,454, down by just nine programs from the previous quarter. Approximately 87 percent (87.2%) of programs currently have funds available for eligible homebuyers, unchanged from the previous quarter.

Across the U.S., there are 135 programs with special benefits for veterans or members of the military, making up 5.5 percent of all homeownership programs.

“There are many mortgage ready renters today, but they don’t know it. Often, homebuyers remain sidelined for years due to the down payment,” said Rob Chrane, CEO of Down Payment Resource. “Plus, veterans and members of the military may not know about additional homeownership benefits they can pair with their VA loan. After serving our country, it’s important we in turn support our veterans in achieving their dream of homeownership.”

Veteran and Military Program Availability

Veterans and members of the military may qualify for any number of national, state or local programs, but they also have access to additional, special programs designed to serve their community. In addition, military and veterans can often pair a homeownership program with their VA housing benefit—the VA loan—that offers a zero down payment. Military and veteran buyers can often waive the first-time homebuyer requirement for many down payment programs offered to the general public.

While VA loans don’t require a down payment, these programs can provide qualified buyers additional equity upfront and/or a source of funds to cover closing costs. The closing cost help may make an offer more attractive in a tight market because it eliminates the need for the buyer to negotiate seller paid closing costs.

Veteran Program Examples

One nationally available program for veterans is the PenFed Foundation Dream Makers program, formed by the PenFed Credit Union in 2001. The program provides a two-for-one matching grant up to $5,000 for military personnel and veterans. It requires 3% down payment and an income no higher than 80% of the area median income in the county where the home is being purchased, but the grant from the Foundation can be used towards the down payment requirement. It does not have to be repaid.

“Since the Dream Makers inception, the PenFed Foundation has provided over $5 million in down payment assistance grants, supporting the purchase of a home by veterans and military personnel,” said Mark Smith, Director of Programs at the PenFed Foundation.

Local communities also offer special programs for veterans. The Atlanta Neighborhood Development Partnership (ANDP) offers a Veterans Program that provides newly renovated homes priced affordably as well as down payment assistance to qualified buyers. The assistance on a qualifying home ranges from $5,000 to $30,000 and there is no first-time homebuyer requirement.

The Florida Housing Finance Corporation offers a Florida First & Military Heroes Program for veterans and active duty military personnel. It provides qualifying buyers with a government (FHA, VA, USDA-RD) first mortgage loan at a reduced interest rate. Plus, veterans do not have to be first-time homebuyers.

In Phoenix, the Home in 5 Advantage program offers eligible buyers a 2.5% or 3.5% down payment/closing cost assistance grant and provides an additional 1% down payment assistance grant for qualified United States military personnel, veterans, first responders and teachers. The program allows household income of $88,340 and home prices of up to $300,000.

The Texas State Affordable Housing Corporation (TSAHC) Homes For Texas Heroes program provides veterans and other targeted community heroes a first mortgage along with a grant of 3% to 5% of the first loan amount for down payment and closing cost assistance. Available across the state, the program allows qualifying income up to 115% of the area median income in non-targeted areas and 120% to 140% in targeted areas. Maximum purchase price limits are by county and go up to more than $400,000 in targeted areas. Plus, veterans do not need to be first-time homebuyers.

Data highlights about all types of homebuyer programs

63% of homeownership programs have a first-time homebuyer requirement. This is defined by HUD as someone who has not owned a home in three years.
76% of programs are available in a defined area, such as a city, county or neighborhood. 24% of programs are available state-wide through state housing finance agencies.
5% of programs are available for community service workers, including educators, police officers, firefighters and healthcare workers.
5% of programs have benefits for veterans, members of the military and surviving spouses. These programs can also be layered with zero down payment VA loans.
Nearly 70% of programs in the database are down payment or closing cost assistance. 9% of programs are first mortgages and 8% of programs are Mortgage Credit Certificates (MCCs).
States with the greatest number of down payment programs remained consistent—California, Florida and Texas are the top three. View a complete list of state-by-state program data.
More than 50 percent of programs accept online homeownership education.

Download the full First Quarter 2017 Homeownership Program Index press release.

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