The number of national homebuyer assistance programs increased by 29 in the third quarter, rising to a total of 2,444, according to Down Payment Resource (DPR), which offers homebuyer assistance program data and solutions.
That’s a 1.2% increase compared with the second quarter.
The firm’s Q3 2024 Homeownership Program Index (HPI) report shows a 5% increase in programs for first-generation buyers.
The news comes as the Vice President Kamala Harris’ campaign is proposing to provide $25,000 down-payment assistance to first-time homebuyers who have paid rent on time for two years, with more generous support for qualifying 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,” says Rob Chrane, founder and CEO of DPR, in a statement. “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.”
The firm’s research shows that there was an 8% increase in below market rate/resale programs and 7% increase in grant-funded programs, and 6% increase in other homebuyer assistance compared with the second quarter.
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.
The firm’s data show that 949 municipalities offered DPA programs as of the end of the third quarter. Municipalities represented the majority of funding sources at 39%, which is virtually unchanged from the previous quarter.
Nonprofits were the second highest funding source, at 21%, followed by state HFAs at 19%.
A few of these programs have seen increases from federal program resources, including the American Rescue Plan Act (ARPA) and US Department of Health and Human Services (HHS).
Photo: Blogging Guide
