CBC Reports Average Customer Gains $27,000 in Home Equity
February 11, 2020
Homebuyers who utilized downpayment assistance (DPA) from CBC Mortgage Agency (CBCMA) have realized an average increase of nearly $27,000 in their home's value, according to an internal analysis conducted by CBCMA, a nationally-chartered housing finance agency and downpayment assistance source for first-time homebuyers.
According to a report from the Federal Reserve Board, while the net worth for the average U.S. renter was just $5,200 as of 2016, that number jumped to $231,400 for the average homeowner. But saving enough for the down payment necessary to make the transition from tenant to owner can be next to impossible for many American families, some of whom are saddled with student debt.
However, on transactions where CBCMA provided downpayment assistance, the average home value gain was $26,942. The company determined the equity growth by analyzing publicly available automated property valuation data for 17,500 of its transactions. The analysis also found that 96 percent of CBCMA customers have seen price appreciation.
In aggregate, CBCMA's customers have realized $469 million in increased wealth since purchasing their homes as a result of utilizing one of its down payment assistance programs.
"Our programs have enabled thousands of families, who otherwise would have been unable to save for a down payment, to achieve the American Dream," said CBC Mortgage Agency President Richard Ferguson. "It is especially gratifying to know that many of our customers are black, a group who often lacks intergenerational wealth and whose median net worth is barely a 10th of their white counterparts."
CBCMA plans to be proactive in opposing any efforts by the Department of Housing and Urban Development to restrict the use of downpayment assistance on FHA-insured transactions. CBCMA, which successfully sued HUD and forced it to rescind Mortgagee Letter 19-06 restricting downpayment assistance, plans to provide public comments for any related rulemaking efforts by HUD.
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