There are now more down payment assistance programs than ever before, according to the Down Payment Resource's (DPR) Q2 2024 Homeownership Program Index (HPI) Report, which currently tracks 2,415 programs. That’s 213 more programs than a year ago, an increase of 11% — the largest annual jump since DPR began reporting on this data in Q3 2020.
The report also included the addition of program resource agencies, with 29 added in Q2 2024, totaling 213 more than at this time last year to 1,302 agencies.
DPR's Q2 2024 edition of the report reveals an increase in the availability and diversity of DPA programs, including a new breakdown of the 724 programs that allow for the purchase of multifamily properties. Of those, 724 allow for two-unit properties, 491 allow for three-unit properties, and 466 allow for four-unit properties.
While 2,193 programs have income limits, 222 do not, a 27% increase from a year ago.
DPR's report identified several trends, one being that federal funds are "being leveraged by state and local agencies to help struggling homebuyers." Notably, DPR reported that 275 programs are funded by Community Development Block Grants, using allocations from HUD, which is up 14% compared to the same time last year.
The US Department of Health and Human Services (HHS) provides funding for 31 programs, a 19% increase from last quarter, while 24 programs provide funding through the American Rescue Plan Act (ARPA) stimulus plan, a 26% increase from last quarter.
Another trend noted by DPR was first-time buyer programs gaining traction. Twenty-one programs target first-generation buyers, a 133% increase from Q1 2024. DPR commented on the report that first-generation homebuyers are less likely to receive financial assistance from their parents for a down payment and other upfront home-buying costs.
DPR noted that the breakdown of homebuyer assistance programs available by type was virtually the same as the previous quarter. Of the 2,415 homebuyer assistance programs, 82% of programs are currently funded, 9% of programs are currently inactive, 4% of programs have a waitlist for funding, and 5% of programs are temporarily suspended.
Of the 2,415 programs, 73% are for down payment or closing cost assistance, 9% are for first mortgages, 4% of programs are Mortgage Credit Certificates (MCCs), and 14% are other types. Of the pool of programs, 60% are for first-time buyers, while 40% allow repeat buyers.
The states with the greatest number of programs were California (322 programs), Florida (175), Texas (108), Minnesota (92), and Colorado (87).
