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U.S. Down Payment Assistance Program Count Hits 2,444

Oct 21, 2024
Down Payment Assistance
Staff Writer

The report noted a 5% increase in programs for first-generation homebuyers

Down Payment Resource (DPR) today released its Q3 2024 Homeownership Program Index (HPI) report. The Q3 2024 report saw the number of national homebuyer assistance programs increase by 29 to 2,444, the same increase as last quarter.
 
The report showed a 5% increase in programs for first-generation buyers, a key focus of the Harris Presidential campaign, which plans to build 3 million affordable housing units and offer $25,000 in down-payment assistance to first-time buyers, with additional support for first-generation homeowners.

“We are pleased to see a growing number of these programs, and think they are becoming a targeted way to help first-time and first-generation homebuyers struggling to save for a down payment get into a home they can afford,” said Rob Chrane, founder and CEO of DPR. “Our data show the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.”

Of the 2,444 homebuyer assistance programs, 81% of programs are currently funded, 10% of programs are currently inactive, 4% of programs have a waitlist for funding, and 5% of programs are temporarily suspended.
 
The number of U.S. homebuyer assistance programs increased by 29 over the past quarter. This represents a 1.2% increase over the previous quarter.

The report also noted an 8% increase in below-market rate/resale programs and a 7% increase in grant-funded programs, and a 6% increase in other homebuyer assistance from Q2 2024. Below-market rate or BMR homes are affordable homes sold at a lower price than the market average and are intended for low- to moderate-income buyers. When a BMR homeowner wants to sell, they must sell the home to an income-eligible buyer.

Of the 2,444 programs, 777 supported multifamily purchases, up 7% from the previous quarter. Of those, 526 allowed for three-unit properties, up 7% from Q2 2024, while 501 allowed for four-unit properties, up 8% from Q2 2024.

Also of the 2,444 programs, 195 programs offer incentives for special groups, 35% offer special funding for educators, 29% for protectors, 26% for firefighters, 24% for healthcare workers, 24% for Native Americans, and 22% for military homebuyers.

About the author
Staff Writer
Sarah Wolak is a staff writer at NMP.
Published
Oct 21, 2024
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