The Importance of Down Payment Assistance Programs in a Pandemic

Economists agree that the real estate business has recovered faster than expected during the pandemic. A continued lack of inventory, low mortgage rates, and pent-up demand are all contributing factors to a robust market.

The good news for homebuyers is that down payment assistance is still available, with many program providers offering online and virtual support/education. With an average benefit of $13,000, these programs can help make the difference in achieving homeownership when competition is fierce.

In a recent appearance on the “Real Estate Coach Uncensored” show with Bernice Ross and Greg McDaniel, our very own Rob Chrane, CEO of Down Payment Resource, discussed the different types of down payment programs available and how they represent an opportunity for real estate agents and loan officers to expand their client portfolio.

Many prospective buyers are unaware of the scope of these resources or don’t think they’ll qualify. Our goal is to dispel several of the most common myths surrounding these programs:

  • Myth #1 – They’re only for first time buyers: Over a third of the programs don’t have a first-time homebuyer requirement. Further, previous homeowners who haven’t owned a home for at least 3 years can qualify as first-time buyers.
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Are Down Payment Assistance Programs Gone?

Homebuyers are wondering what COVID-19 will mean for their home financing plans. Will down payment assistance be available? Are low down payment loans still available? What about credit score and employment verification changes?

The good news is that down payment assistance programs and low down payment loans are still widely available. However, the market is very fluid and some programs modified eligibility requirements and made process changes. keep reading

The Impact of COVID-19 on Down Payment Assistance Programs

by Rob Chrane, CEO, Down Payment Resource

We’re closely monitoring the impact of today’s unprecedented environment on Down Payment Assistance (DPA) programs and first-time homebuyers. Lenders are managing extreme refinance demand and volatility in the MBS market. Homeownership program providers are not only taking expected precautions, but also reacting to the same MBS volatility that in some cases is impacting the funding of certain program types.

Fortunately, there are many programs and funding mechanisms. The impact so far has been limited, but the situation remains fluid. keep reading