Down Payment Resource identified 2,746 programs nationwide, although only 77% were active and funded at the beginning of July
The number of U.S. homeownership assistance programs climbed to a record high in the second quarter as more grants and programs covering manufactured homes and multi-unit properties became available.
Down Payment Resource identified 2,746 programs nationwide as of July 1, an increase of 67 from the first quarter, according to the company’s latest Homeownership Program Index. Of those programs, 2,114, or 77%, were active and funded.
The increase comes as high home prices and borrowing costs continue to strain affordability, making down payment and closing-cost assistance increasingly important for LOs seeking to convert qualified prospects into homeowners.
The programs tracked by DPR may help buyers cover down payments, closing costs and interest-rate buydowns. By reducing the amount borrowers must bring to closing, the assistance can also lower loan-to-value ratios and strengthen borrower profiles.
“Quarter after quarter, the universe of available programs keeps expanding, and so does the flexibility they offer,” said Rob Chrane, founder and CEO of Down Payment Resource. “The surge in grant programs is a good example. These aren’t resources for a narrow slice of buyers. They’re mainstream financial strategies that lenders and real estate professionals should be putting in front of every qualified borrower.”
Grants And Broader Income Eligibility
Grant programs, which do not require repayment, increased 6% during the quarter to 234. Grants now represent 9% of the programs tracked by DPR, up from 8% in the first quarter.
The data also challenge the perception that homebuyer assistance is reserved exclusively for low-income households. Sixty-two percent of programs permit income limits above $100,000, while 291 programs, or 11%, have no income restrictions.
First-time buyers remain a significant focus, with 1,696 programs, or 62% of the total, available to them. That represented a 2% increase from the previous quarter.
Programs supporting first-generation buyers increased 6% to 35. DPR defines these programs as resources intended for buyers entering homeownership without a family history of owning a home.
The growing number and flexibility of programs could give originators more options for borrowers who qualify for a mortgage but lack sufficient cash to cover the upfront cost of a purchase. Previous NMP reporting has also documented the expansion of assistance beyond lower-income and first-time buyers.
More Options For Alternative Property Types
Assistance is also becoming available across a broader range of property types.
The number of programs supporting purchases of two- to four-unit properties increased 3% to 962. These programs may help buyers use anticipated rental income to make homeownership more affordable, depending on applicable underwriting and program requirements.
Programs supporting manufactured homes also increased 3%, reaching 1,089, or 40% of all programs. The expansion gives lenders additional options in markets where the cost of site-built housing remains out of reach for many prospective buyers.
DPR found that 2,209 programs, or 80%, support new construction, while 2,544, or 93%, support existing homes. A total of 2,209 programs cover both.
Second Mortgages Remain The Most Common Structure
Second-mortgage programs remained the largest category, accounting for 1,528 programs, or 56% of the total. Those programs may include deferred-payment or forgivable loans designed to reduce the amount buyers need at closing.
Combined-assistance programs accounted for 10% of the total, while first-mortgage programs and grants each represented 9%.
Not every program in the database was immediately available. In addition to the 77% that were active and funded, 12% were inactive, 6% were temporarily suspended and 5% had funding waitlists.
Municipalities remained the largest source of assistance, administering 1,068 programs, or 39% of the nationwide total. Nonprofits accounted for 601 programs, followed by state housing finance agencies with 485 and local housing finance agencies with 207.
The number of programs administered by tribal organizations increased 4% to 56.
California had the most programs at 439, followed by Florida with 277 and Texas with 198. However, the share with funding available varied: 69.5% in California, 71.5% in Florida and 86.9% in Texas, according to DPR’s state-by-state data.
*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.