The Second Quarter 2021 Homeownership Program Index (HPI) reveals that Down Payment Assistance (DPA) programs make up 73 percent of the programs in the Down Payment Resource database.

These programs may come in the form of a repayable second mortgage loan or a non-repayable grant. They’re offered by federal, state, county or local government agencies, nonprofits or employers, and they’re available across the country for income- and credit-qualified buyers ready for homeownership.

“From grants to forgivable loans, down payment assistance is the largest category of programs we track. This gives buyers flexibility when it comes to applying for down payment and/or closing cost help,” said Rob Chrane, CEO of Down Payment Resource. “Buyers should discuss their program options with their loan officer and real estate agent to make sure they choose the program best suited to their personal needs.”

Repayable down payment assistance programs are often a 0 percent interest second mortgage.

Some accrue interest, while others are amortizing loans. They typically range from 5-year to 30-year loans with varying payback provisions. The repayment may start immediately or kick in after a predetermined period of months or years, referred to as a “soft” second.

The GC97 Freddie Mac HFA Advantage Program with GC97 Plus, offered through the Tennessee Housing Development Agency, is an example of a soft second. Buyers can receive up to $7,500, depending on the sales price of the home. The loan is amortized over a 15 year term, and the interest rate is the same as the first mortgage.

Some repayable programs have a partial balloon payment, where the remaining balance of the original second mortgage will come due at the end of the second mortgage term.

Nearly two-thirds of all down payment programs are silent seconds or deferred loans.

With a silent second or deferred loan, payments are postponed until one of several events occurs—usually, when the borrower sells, refinances, rents or moves out of the original home purchased.

These loans are ideal for buyers who plan to live in the home for several years, so they can benefit from the home’s appreciation in value. However, there could be a 1099 coming in the mail after the buyer sells, refinances, rents or moves out of the home—a taxable event buyers need to be aware of and plan for.

An example of a silent second is the Florida Housing Finance Corporation Florida Assist program, available statewide. This program offers buyers up to $10,000 for Government loans and up to $7,500 on Conventional Loans. The payments are deferred, but the loan will be due upon sale or transfer of the property, satisfaction of the first mortgage, refinance, or a change in occupancy.

Forgivable second mortgage programs account for almost half all of down payment programs.

With a forgivable second, some or all of the original down payment assistance amount is forgiven. When and how much will vary, but it’s common for a percentage of the loan to be forgiven each year for a predefined number of years. If the program’s conditions are not met—for example, the buyer moves out of the home—the loan must be repaid, at times with interest.

One example is the New Mexico Mortgage Finance Authority HOMENow Program, available statewide. This second mortgage provides the lesser of 8 percent of the sales price or $8,000 to first-time buyers and can be used for down payment and/or closing cost assistance. The program is non-amortizing, has a zero percent interest rate, and is forgiven after 10 years, if the borrower meets the program provider’s requirements.

Grant programs are gifts which do not have to be repaid by the homebuyer.

Grant programs do not incur a lien on the property being purchased and have no associated note or deed. These programs offer a true gift to the buyer at closing to help cover the cost of some or all of the down payment or closing costs and provide immediate equity.

The PenFed Foundation Dream Makers Grant is a national grant program that provides eligible military or veteran homebuyers with a 2-to-1 matching grant up to $5,000.

HPI Data Regarding All Program Types

73 percent of programs in the database are for down payment or closing cost assistance.

• 64 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 are additional programs, including matched savings programs and Housing Choice Vouchers (HCV).

10 percent of programs are first mortgages.

5 percent of programs are Mortgage Credit Certificates (MCCs).

Other HPI Findings to Note

• The HPI reports a decrease in programs that may have been temporarily suspended due to the pandemic. Currently, 0.9 percent of programs are temporarily suspended, a 0.7 percent decrease from the previous HPI.
• 38% of homeownership programs do not have a first-time homebuyer requirement and are available for eligible repeat homebuyers. (A first-time homebuyer is defined by HUD as someone who has not owned a home in three years.)
• 74% of programs are available in a specific local area, such as a city, county or neighborhood. 26% of programs are available statewide through state housing finance agencies.
• 26% of programs allow buyers to purchase a multi-family property as long as the buyer occupies one of the units.
• 26% of programs allow manufactured housing as an eligible property type. Some restrictions may apply and will vary by program.
• More than 8% of programs are available for community service workers, including educators, police officers, firefighters, and healthcare workers.
• 12% 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.
• States with the greatest number of down payment programs remained consistent—California, Florida and Texas are the top three.

Download the press release and full infographic.

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Home prices are increasing faster than incomes, especially for younger households. Add in things like the pandemic and student loan debt, and it’s hard for many to see a path to homeownership.

Many millennials are turning to the bank of mom and dad. A recent report from Apartment List found that 63 percent of millennials surveyed do not have any savings for a down payment, and more than 20 percent expect financial help from family towards a down payment.

Alternative to the bank of mom and dad

Most buyers don’t know to look for down payment assistance that could help them save on their down payment, closing costs or provide tax savings. There are programs in every market designed to help otherwise qualified buyers overcome the down payment hurdle.

It’s also true that buyers are overestimating the down payment needed. Even this Apartment List study notes the difficulty saving for 20 percent down on a median priced home. But, 20 percent down is just a myth. In fact, the average down payment for a first-time homebuyer is only around 6 percent.

Instead, let mom and dad keep their retirement savings intact and do your research on the down payment help available in your market. There are even programs designed to help graduates with student loan debt.

An even bigger issue

Let’s also not downplay an even bigger issue. It’s primarily higher-income families who are able to support their adult children, however it’s renters from a lower-income background who are more likely to need assistance. This cycle reinforces existing wealth inequality that’s transferred from generation to generation.

Homeownership programs help address part of that issue. They give equal opportunity to eligible homebuyers, providing that leg up for buyers to get into the market and become homeowners.

Make mom and dad proud and do your homebuying homework, before going to them for help.

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Have a success story to share? Please contact us at info@downpaymentresource.com.

Representing over a third of all homebuyers, Millennials are a driving force for the housing market and its recovery. However, these buyers are facing a lot of uncertainties when it comes to homebuying, and their concerns have little to do with the pandemic.

Cultural Outreach, in collaboration with National MI, recently published their 2020 NextGen Homebuyer Report. They surveyed 1,450 NextGen homebuyers (ages 22-37) in April and September to learn how this generation feels about buying a home in the midst of a pandemic. 

What’s good?

Despite the ups and downs of 2020, NextGen buyers are staying optimistic. Nearly 70% say the pandemic has had little to no effect on their homebuying plans, and 77% say buying a home is still their financial priority. 

Also, this generation has remained financially fit, with 77% reporting less than $20K in consumer debt, including student loans. 

What’s not so good?

One unfortunate statistic is that 1 in every 5 of these potential buyers stated they aren’t confident in ANY step of the homebuying process, from contract to closing. 

Savings and the burden of a monthly mortgage payment are other big homebuying concerns. According to the study, affordability remains the biggest fear (68%), with 77% saying down payment is the primary obstacle. 

They also expect to have to cover the entire down payment themselves, and nearly 70% of these potential buyers are saving less than $500/mth toward a down payment. 

Even worse, only 25% are aware of DPA in their market. 

How do we help?

This study brings to light a huge opportunity for housing industry professionals to ramp up their education and advocacy platforms, including down payment assistance options.

There are currently over 2,300 homeownership programs available across the country, including affordable first mortgages, tax credits and non-repayable grants. 

Help is available, and we must work hard as an industry to disprove the myths that may cause buyers to remove themselves from the homebuying market.

If you’re a homebuyer, seek out real estate and mortgage professionals who are willing to educate you on the homebuying process and provide the type of service and guidance you need to become a confident homeowner.

If you’re a professional, look for marketing and education opportunities that will move the needle in a positive direction for new homebuyers. You’ll be building your own future, too.

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Are you an industry professional? Download our latest Down Payment Report for the data and news on first-time homebuyers and residential down payments.

Down Payment Resource, the nationwide database for homebuyer programs, today released its Third Quarter 2020 Homeownership Program Index (HPI). The number of total programs is 2,340, and over 81 percent (81.1%) of programs currently have funds available for eligible homebuyers, down a little less than 2 percent from the previous HPI. 

Down Payment Resource (DPR) communicates with 1,138 program administrators to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates (MCCs), affordable first mortgages and more. 

Overall Impact

Though we’ve noticed a slight and mostly temporary drop in available programs at the city and county level, it’s important to note that state housing finance agencies (HFAs), which comprise nearly 24 percent of all programs, have not closed or paused business during the COVID-19 pandemic. 

Stockton Williams, Executive Director of the National Council of State Housing Agencies (NCSHA), discussed the COVID pandemic and its impact on HFAs and lenders in an interview in the June/July issue of the Down Payment Report.

According to Mr. Williams, “the last several months have been a tumultuous time for the mortgage finance system and everyone who is involved with providing housing lending. There have been lenders who have pulled back from originating loans for low- and moderate-income borrowers for a variety of reasons, including general economic stress, or pivoting to do more business in refinances since rates are so low. There is also a lot of concern, which, frankly, state HFAs share, about some of the actions FHFA, FHA, Fannie, and Freddie have taken and not taken. Those have all contributed to uncertainty in the markets.”

The good news though, as Mr. Williams put it, is that “more often than not, we are hearing that state housing finance agencies are doing as much or more business than they were at this time a year ago, and in a number of cases, they are doing more. A handful of state HFAs have even told us that they have had record production in recent months.”

As of August, over 81 percent of all DPAs were actively funded and available, and less than 2% had temporarily paused their programs due to the pandemic.

Forbearance and Delinquencies

Although state HFAs have maintained business as usual through the pandemic, they had to explore more flexible arrangements regarding forbearance. 

A key take-away from this year’s National Association of Local Housing Finance Agencies (NALHFA) annual conference was that it’s becoming apparent forbearance claims near the start of the pandemic were expressions of consumer caution. Claims have since slowed, and reports from May and June show monthly mortgage payments are being made. However, there is worry of potential volatility still to come.

MBA reported this month that the share of mortgage loans in forbearance declined for the 8th straight week, but according to CoreLogic, delinquency rates are rising.

HFAs are trying to work with their master servicers and participating lenders on flexibility with loan level pricing adjustments (LLPAs) and purchase timelines related to loans that enter forbearance.

HOME and CDBG Funds

Per the HPI, over 32 percent of programs are funded by HOME Investment Partnership Program (HOME) and Community Development Block Grant (CDBG) funds. As states begin rolling out COVID-19 housing relief programs, and as municipalities begin planning for HOME and CDBG allocations this Fall, it’s important to track funding status and even forecast expectations for 2021.

Many of these relief programs are leveraging CARES Act and Emergency Solutions Grant (ESG) funds, but may also use any remaining HOME and/or CDBG funds. Any impact on DPAs will likely begin to trickle down later this year in the form of constrained DPA budgets. 

The good news is the House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies passed its fiscal year (FY) 2021 appropriations bill, which will significantly increase HUD funding for housing programs, most notably HOME and CDBG.  

Other Findings to Note

The HPI reports an increase in the share of down payment and closing cost assistance programs:

78% of programs in the database are down payment or closing cost assistance — a 1% increase from the previous HPI. 

• 65% of all DPAs include payment deferral for some period of time.
• 44% of all DPAs are partially or fully forgivable.
• 39% of all DPAs are both deferred and forgivable.

6% of programs are first mortgages — a 1% decrease from the previous HPI. 

5% of programs are Mortgage Credit Certificates (MCCs) — a 1% decrease from the previous HPI. 

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

Download the complete Q3 2020 HPI press release.

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Are you an industry professional? Download our latest Down Payment Report for the data and news on first-time homebuyers and residential down payments.

Buying a home is likely the biggest purchase you’ll make in your lifetime. There’s a reason why people joke they feel “house poor” when they leave the closing table. Too often the burden of the down payment leaves homebuyers’ cash reserves empty.

And, new data shows that can be a recipe for financial stress.

A better measure: Cash on hand

Research by the JPMorgan Chase Institute flips the script on homebuyer risk. It turns out that having a cash cushion trumps a big down payment.

Historically, a big down payment is associated with lower risk, but the report found that liquidity — having at least three months of mortgage payments available — is a better measure of homeownership success. In fact, borrowers with less than one month of mortgage payment reserves defaulted at a rate five times higher than borrowers who had three and four months of mortgage payments available.

What about that interest rate?

Homebuyers have an incentive of securing a lower interest rate to try and stretch to make a larger down payment. But, is it really the best for long-term success?

The short answer is no. Don’t make a big down payment at all costs.

The report found that borrowers with little liquidity but more equity (made a larger down payment) defaulted at considerably higher rates than borrowers with more liquidity but less equity (made a smaller down payment). Further, default was preceded by a drop in income regardless of the homeowner’s equity, income level, or payment burden.

Prepare for your success

The report’s findings suggest that a policy or program encouraging borrowers to make a slightly smaller down payment and use the residual cash to fund an “emergency mortgage reserve” account might lead to lower default rates.

The good news is that many down payment assistance programs available today can help you do just that. You may be able to combine an affordable first mortgage with a down payment assistance program. It can help you to come to the closing table without wiping out your bank account.

That’s good news for homebuyers and the mortgage industry.

Before you assume a big down payment is best, research your down payment options and talk to your lender and real estate agent.

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It’s the time of year when graduates hear “what’s your plan now?” from everyone in their life. And that really driven (um, pushy?) relative might even ask about your five year plan.

When it comes to generations and planning, one thing is constant — the desire to own a home is strong. But a new homebuyer survey shows that Gen Z isn’t just thinking about graduation, they are also planning to own a home in five years.

Gen Z buyers want to be homeowners before 30

According to the latest Bank of America Homebuyer Insights Report, a majority of prospective Gen Z homebuyers between the ages of 18 and 23 want to buy within the next five years, and more than half are already saving for a home. That could mean a lot of first-time homebuyers in their 20s, setting up some long term wealth building.

Top barriers to homeownership, but new perspectives

While young prospective buyers identify saving for a down payment and closing costs as the top barrier to buying, they see it as less of a challenge than other generations do. In fact, Baby Boomers ranked the down payment as a bigger challenge than Gen Z.

Is it possible our youngest generation is more knowledgeable about down payment solutions than others?

Gen Z ready to do what it takes

This generation might be young, but they are willing to do what it takes to reach their goal, including getting financial help and making sacrifices. And, it’s not just the bank of mom and dad — down payment assistance is ranked as a key solution for young homebuyers.

Gen Z was also the most likely to consider attending a college or university that would leave them with less student loan debt.

Are you a young homebuyer?

If you are a motivated Gen Z homebuyer, you aren’t alone. You might be out there making your five year plan and already saving to own a home, but what else can you do now to prepare?

Here are some other good places to begin:

1. Take a homeownership class — some are offered on weekends. Start by connecting with your state or local housing finance agency. You can also checkout online homebuyer education, such as eHomeAmerica.
2. Interview 3 lenders to find the best fit for you.
3. Research down payment assistance programs in your market.
4. Consider house hacking — you own the home and it’s your primary residence, but you rent out bedrooms to earn income that helps offset the cost of your mortgage and other expenses.

Did you use a down payment assistance program to buy a home before 30? Share your story with us.

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Are you expecting a rent increase? You aren’t alone.

According to a Rent.com survey, 88 percent of property managers raised rents last year with no signs of slowing. Plus, 53 percent of property managers said they would more likely bring in a new tenant at a higher rent than negotiate leases for existing tenants. Yikes.

National average rent headed up

RentCafe’s 2018 year-end review shows a steady upward trend for rental rates across the country.

Don’t wait for your landlord.

Now’s the time to start considering whether you are ready to sign a new rental agreement or buy a home.

If you’ve been thinking about owning a home one day, here’s some encouraging news from the KCM Crew Real Estate Blog:

• The average down payment for first-time homebuyers is only 6 percent! Yes, you can toss that old 20 percent down payment myth out the window.
• Mortgage interest rates have been on the decline since November. Now’s a great time to lock in a low rate — and save on your mortgage every month.
• You don’t need perfect credit. There are many flexible mortgage options available today.

Down payment programs can help

Don’t forget that down payment programs are available in every market across the country. They can help you save on your down payment and mortgage.

Find out what might work for your personal situation.

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You may not be thinking about how homeownership can benefit you decades from now, but you should. A new study from the Urban Institute finds that the younger you buy a home, the wealthier you will be by the time you are 60 years old.

The impact of buying young

How much of a difference would it make to wait another 10 years before buying? Every year you put off buying your first house could cost you thousands of dollars in lost equity by the time you turn 60. In fact, there is a $72,000 difference in the median housing wealth of those who bought their first home between ages 25 and 34 and those who waited until they were 35 to 44.

Homeowners who bought their first home before they reach 34 are financially better off in their sixties — proving that the housing choices you make today could have long-term economic consequences in the future. The graphic below shows that those who bought a home before age 25 got the biggest bang for their housing buck.

“Deferring home purchases could have long-term economic consequences for millennials and the nation’s economic well-being,” concluded the study’s authors, Jung Hyung Choi and Laurie Goodman.

Millennial homeownership rate

The Millennial homeownership rate is about 38 percent, just over half the national rate and about eight percentage points lower than that of the two previous generations (Gen X and Baby boomers) at the same age. Today’s older adults became homeowners at a younger age than today’s young adults — and they are reaping those benefits today.

But nearly half of Millennials have yet to save a dime for a down payment and nearly two-thirds will have to save two decades or more to afford a 20 percent down payment. Only by taking advantage of the low-down payment options available today will most Millennials and Generation Zers have a chance to realize the wealth effect of buying young.

Find out what types of homeownership programs may help you get in a home sooner than you thought possible.

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Mortgage Ready Buyers May Benefit from Down Payment Help

Homeownership Program Index analyzes 7 markets with the greatest potential impact of down payment assistance

The Down Payment Resource Third and Fourth Quarter 2018 Homeownership Program Index (HPI) reports the number of total programs decreased to 2,524, down just three programs from the second quarter. More than 85 percent (85.8%) of programs currently have funds available for eligible homebuyers, down one percent from second quarter.

Down Payment Resource (DPR) communicates with 1,313 program administrators to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates, affordable first mortgages and more.

HPI key facts

• 39% of homeownership programs do not have a first-time homebuyer requirement and are available for eligible repeat homebuyers. (First-time homebuyer is defined by HUD as someone who has not owned a home in three years.)
• 74% of programs are available in a specific local area, such as a city, county or neighborhood. 26% of programs are available statewide through state housing finance agencies.
• 20% of programs allow buyers to purchase a multi-family property as long as the buyer occupies one of the units.
• Nearly 8% (7.9%) of programs are available for community service workers, including educators, police officers, firefighters and healthcare workers.
• More than 6% (6.4%) 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.
• 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.

Mortgage-ready buyers can benefit

According to the updated and expanded Urban Institute Barriers to Accessing Homeownership report, commissioned by Down Payment Resource and Freddie Mac, there are about 21 million mortgage-ready renters under 40 in the 31 largest US cities. In addition, most (about 88%) of the mortgage-ready millennials in the US earn enough to afford a typical house in their city.

“We now know there are millions of buyers with the income and credit necessary to qualify to buy a home. The biggest question is: do they know it?” said Rob Chrane, CEO of Down Payment Resource. “Unfortunately, many renters don’t investigate homeownership simply because they don’t believe it’s an option. Yet, every community is served by some type of homeownership program.”

According to the Barriers to Accessing Homeownership report, 36 percent of 2017 mortgages, across 31 of the largest U.S. cities, were eligible for down payment help. The HPI analyzed the impact down payment assistance could have on seven markets with the greatest percentage of 2017 purchase mortgage loans eligible for down payment help.

7 markets with the greatest potential impact of down payment assistance

Program examples

Riverside-San Bernardino-Ontario, CA: The Riverside County Economic Development Agency First Time Home Buyer Program provides up to 20% of the home purchase price with a maximum of $75,000 towards down payment and closing costs. In addition, buyers can combine this program with a Mortgage Credit Certificate, providing a life-of-loan tax credit.

St. Louis, MO-IL: The St. Louis County 1st HOME Downpayment Loan provides a $3,000 zero-interest down payment loan to income-eligible first-time homebuyers in St. Louis County. The second mortgage loan will finance the down payment and eligible closing costs, and the loan is due when the owner sells the home.

Baltimore-Columbia-Towson, MD: The Maryland SmartBuy 2.0 program enables qualified borrowers with student debt to purchase a program-eligible home in Maryland, and receive financing through the Maryland Mortgage Program (MMP). SmartBuy financing provides up to 15% of the home purchase price for the borrower to pay off their outstanding student debt up to $40,000.

Phoenix-Mesa-Scottsdale, AZ: Buyers in Phoenix have access to a Arizona Department of Housing “Pathway to Purchase” Down Payment Assistance Program that provides eligible buyers with a  second mortgage equal to 10% of the purchase price. It’s a zero percent interest, five–year forgivable second mortgage with no required monthly payments. The program, targeted to 26 zip codes in 12 Arizona cities, is an incentive to purchase in targeted housing markets that have been hardest-hit by foreclosures.

Houston-The Woodlands-Sugarland, TX: The City of Houston recently raised its Homebuyer Assistance Program (HAP) benefit to $30,000 in assistance for borrowers at or below 80 percent of the area median income.

Austin-Round Rock, TX: The City of Austin offers a forgivable, zero percent interest loan of up to $14,999 and a forgivable, zero percent interest loan with shared equity of up to $40,000 for eligible first-time homebuyers purchasing a home within the Austin city limits.

Memphis, TN-MS-AR: The City of Memphis offers a Citywide Down Payment Assistance Program (DPA) that provides up to 10% of the sales price with a maximum of $10,000 to help homebuyers with down payment and closing costs to complete the purchase of a home inside the city limits of Memphis.

View state-by-state data.

Download infographic.

It turns out a lot of millennials want to buy a home someday — a whooping 89 percent according to a new Apartment List survey. But, just 5 percent expect to buy in 2019 and 34 percent say they will wait at least five years. Why the lag? 

While the dream of homeownership is strong, 72 percent cite affordability as the critical issue. 

Down payment funds are primary challenge

Sixty-two percent of millennials specifically mention the lack of funds for a down payment. Only 11 percent have saved $10,000 or more for a home and 48 percent have zero down payment savings.

What the study overlooks

The survey also found that two-thirds of Millennial renters would require at least two decades to save enough for a 20 percent down payment on a median-priced condo in their market.

What this study overlooks is that a 20 percent down payment isn’t required and isn’t even typical for a first-time homebuyer. The average down payment for a first-time buyer is about 7 percent today, according to the National Association of REALTORS. So, don’t despair — you have options.

Today, there are multiple loan programs are available with as little as 3 or 3.5 percent required as a down payment. Some loan programs such as the VA loan program and the USDA Rural Development loans require zero down payment. Plus, there are more than 2,500 homeownership programs across the country that provide assistance with down payment and closing cost funds — you can check your eligibility on our online program search.

Is 2019 the year you will become a homebuyer?

It might depend on how you prepare. We outlined four simple steps you can take to jump start your goal. Do your research and consider all your down payment options. You don’t have to sit out of the market for decades.

1. Take a homeownership class — some are offered on weekends. Start by connecting with your state or local housing finance agency. You can also checkout online homebuyer education, such as eHomeAmerica.
2. Interview 3 lenders to find the best fit for you.
3. Research down payment assistance programs in your market.
4. Review your budget. Outline out what type of monthly housing costs your income will support.

Happy goal setting!

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Saving for a down payment is a considerable barrier to homeownership. With rising home prices and interest rates and tight lending standards, the path to homeownership has become more challenging, especially for low-to-median-income borrowers and potential first-time homebuyers.

Yet most potential homebuyers are largely unaware that there are low– and no–down payment assistance programs available to help eligible borrowers secure an affordable down payment.

Homeownership Potential

According to the updated and expanded Urban Institute Barriers to Homeownership report, commissioned by Down Payment Resource and Freddie Mac, there are about 21 million mortgage-ready renters under 40 in the 31 largest US cities.

In addition, most (about 88%) of the mortgage-ready millennials in the US earn enough to afford a typical house in their city.

Nationally, 2,527 programs provide grants and loans to make homeownership more affordable. It’s help that could make an impact. According to 2017 loan data in the 31 largest cities, about 789,000 homebuyers were eligible for an approximately of 6 programs, averaging $9,208 in down payment help. Down Payment Resource provided data critical for Urban Institute’s analysis in the report.

Borrower loan data shows that many consumers are not taking advantage of programs that could provide greater access to credit and homeownership. These programs’ benefits and costs are often not sought out, referred to, or communicated to potential homebuyers in a standardized way. The report recommends increasing the visibility of these programs and ensure mortgage borrowers know about available assistance.

Take the Down Payments Quiz

The Urban Institute invites you to take the down payments quiz and find out how much you really know about down payments today.

See how your state compares

The report includes an interactive map of the U.S. which allows you to compare 16 housing market factors, including homeownership programs, between states.

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