Down Payment Resource reports that 172 new homebuyer assistance programs and 75 new program providers were established in 2024.
As of the end of the fourth quarter, there were 2,466 homebuyer assistance programs available to support U.S. homeownership, according to the firm’s Q4 2024 Homeownership Program Index (HPI) Report.
“We are pleased to see state and local agencies adapting to the current and ongoing housing affordability crisis by adding new programs and expanding their criteria to allow for the purchase of multi-family and manufactured housing,” says Rob Chrane, founder and CEO of DPR, in the report. “We’re also seeing more flexibility in how funds can be used — a down payment, closing costs or buying down their interest rate. In a market with few homes for sale and escalating prices, down payment assistance has become vital for many buyers in helping them to become homeowners and start building wealth through equity.”
An examination of the existing 2,466 homebuyer assistance programs on January 8, 2025, resulted in the following key findings:
- The number of U.S. homebuyer assistance programs increased by 22 in the fourth quarter – an increase of 1% compared with the previous quarter, and an increase of 7% compared with a year ago.
- Grants accounted for the largest share of program gains, year-over-year. The most substantial annual gains were seen in grant programs (50), combined assistance programs (49), and below-market-rate (BMR)/resale-restricted programs (21).
- Local housing finance agencies added the most programs in 2024. Local housing finance agencies introduced 72 programs – a 60% annual increase.
- Nonprofits added 50 programs, and municipalities added 46 programs during this period.
Programs supporting multi-family purchases increased by 17%, year-over-year, rising from 686 to 805. Similarly, programs for manufactured housing grew by 14%, from 804 to 914.
The year concluded with 196 programs offering incentives for special groups. 68 programs offer special funding for educators, 54 programs for protectors, 49 programs for military Veterans, 47 programs for firefighters, 44 programs for healthcare workers, and 47 for Native Americans.
Photo: Sandy Millar