A record 2,624 homebuyer assistance programs were available nationwide as of the third quarter, up 3% compared with the second quarter, according to Down Payment Resource’s (DPR) Homeownership Program Index.
As affordability challenges persist, lenders are increasingly using down payment assistance (DPA) to lower buyers’ loan-to-value ratios by an average of 6%, helping more mortgage-ready buyers qualify and close, the organization says.
Even as affordability pressures persist, program growth is giving lenders new tools to qualify more buyers and help more households achieve homeownership
As per the report, 70 new programs were launched in the third quarter, a 3% increase from the second quarter. Additionally, 20 new program providers were added to DPR’s database, bringing its provider total to 1,360.
“With home prices continuing to rise and mortgage rates still hovering near 6.5%, lenders know how challenging it can be to qualify today’s homebuyers,” says Rob Chrane, founder and CEO of DPR, in a release. “The good news is that there are now more tools than ever to help.”
Of the 70 homebuyer assistance programs added, 996 programs (38%) are available to repeat buyers and 1,628 (62%) support first-time homebuyers.
Of the total programs, 2,110 (80%) can be used to purchase new construction homes. These programs typically help cover a portion of the buyer’s down payment and/or closing costs, similar to assistance for resale properties.