Down Payment Resource (DPR), a technology provider helping the housing industry connect homebuyers with homebuyer assistance programs, today announced findings from its latest Homeownership Program Index (HPI). The firm’s analysis of 2,309 homebuyer assistance programs in its DOWN PAYMENT RESOURCE® database revealed that the net number of homebuyer assistance programs increased by 1.6% from Q2 to Q3 2022.
Mortgage down payments nearly doubled during the pandemic, underscoring the importance of the growing number of homebuyer assistance programs nationwide
ATLANTA, Ga. /Mortgage and Finance News/ — Down Payment Resource (DPR), a technology provider helping the housing industry connect homebuyers with homebuyer assistance programs, today announced findings from its latest Homeownership Program Index (HPI). The firm’s analysis of 2,309 homebuyer assistance programs in its DOWN PAYMENT RESOURCE® database revealed that the net number of homebuyer assistance programs increased by 1.6% from Q2 to Q3 2022.
This marks the fourth consecutive quarter of growth in homebuyer assistance programs. Increased program availability and funding are especially timely given recent research from Redfin indicating that the median U.S. down payment on a home grew from $32,917 in July 2019 to $62,500 in July 2022.
Methodology
Published quarterly, DPR’s HPI surveys the funding status, eligibility rules and benefits of U.S. homebuyer assistance programs administered by state and local housing finance agencies, municipalities, nonprofits and other housing organizations. DPR communicates with over 1,200 program providers throughout the year to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates and affordable first mortgages, in the DOWN PAYMENT RESOURCE® database. Homebuyer assistance programs that waive the first-time homebuyer requirement for veterans and military personnel are tracked as two separate programs to enable reporting on dedicated assistance for military buyers.
Key Findings
The Q3 2022 HPI examined a total of 2,309 homebuyer assistance programs that were active as of October 3, 2022. Key findings are as follows:
* The net number of homebuyer assistance programs continues to grow. The number of programs increased by 36 in Q3 2022, including 16 new statewide programs, seven new municipal programs and several new programs administered by employers or nonprofits. These programs provide assistance in the form of affordable first mortgages, community second mortgages and combined down payment and closing cost support, among other types of homebuyer assistance.
* More programs are receiving funding. More than four out of five (83.9%) programs are currently funded, and the number of actively funded programs grew by 34 in Q3 2022, a 2% increase over the previous quarter.
* Programs offering incentives for educators increased. The number of programs offering unique benefits for educators grew by 16.4% over the past quarter. The 10 new programs added this quarter brings the total number of homebuyer assistance programs for educators to 71 nationwide.
“Home price appreciation and low housing inventory have caused the median down payment to nearly double from this time two years ago,” said DPR CEO Rob Chrane. “At the same time, rising interest rates are driving up monthly mortgage payments, making homeownership even more difficult to achieve. Consumers, lenders and real estate agents need to know about the large and growing number of homebuyer assistance programs available nationwide that can make a real difference.”
Further analysis of the Q3 2022 HPI findings, including infographics and examples of many of the programs described in this release, can be found on DPR’s website at https://downpaymentresource.com/professional-resource/homebuyer-assistance-programs-proliferate-in-q3-as-median-u-s-down-payment-skyrockets/.
For a complete, state-by-state list of homebuyer assistance programs, visit https://downpaymentresource.com/wp-content/uploads/2022/10/HPI-state-by-state-data.Q32022.pdf.
About Down Payment Resource:
Down Payment Resource (DPR) is an award-winning technology provider helping the housing industry connect homebuyers with the homebuyer assistance they need. The company tracks funding status, eligibility rules, benefits and more for approximately 2,200 programs in 11 categories. DPR has been recognized by Inman News as “Most Innovative New Technology” and the HousingWire Tech100(tm). DPR is licensed to Multiple Listing Services, Realtor Associations, lenders and housing counselors across the country. DPR’s subscription-based service, Down Payment Connect, helps agents and loan officers match buyers to available programs.
For more information, please visit https://downpaymentresource.com/ and on Twitter at @DwnPmtResource.
Twitter: @DwnPmtResource #downpaymentassistance
RELATED LINKS:
https://www.redfin.com/news/homebuyer-down-payments-doubled-during-pandemic/
Learn More: https://www.downpaymentresource.com/
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