Let’s move 5.5 million qualified buyers off the sidelines

First-time homebuyer sales are at historic lows, however data from the Harvard Joint Center for Housing Studies (JCHS) shows that in many metro markets more than 50 percent of 25-34 year-old renters have the income and credit scores to qualify for a mortgage today. These sidelined buyers are holding onto the belief that all home loans come with a hefty down payment and stringent qualifications. And, it’s keeping them from investigating their options. Could access to homeownership programs be the answer?

infographic.firstslidedataThere are nearly 2,200 such programs across the country and more than 91 percent are funded and available to eligible buyers. Homebuyer programs can be coupled with affordable FHA and VA loans as well, helping buyers save on their down payment and closing costs. Our Quarterly Homeownership Program Index highlights the diversity of programs available to meet the needs of all types of buyers.

How many renters could qualify?

Let’s take the JCHS data a step further to quantify how many renter households are qualified to buy a home today. According to the Census Bureau, there are 11.1 million renter householders between 25 and 34 years old. And, the JCHS found that on average 50 percent are qualified to buy a home today. keep reading

Homeownership Program Index: 91% programs funded

Today’s homebuyers have access to more than 2,100 homeownership programs, 91 percent are funded

Down Payment Resource released its third quarter 2014 Homeownership Program Index which measures the availability of valuable homebuyer programs administered by state and local Housing Finance Agencies (HFAs), nonprofits, and other housing organizations. The index analyzes state, local and national programs found in DPR’s databank.

Key findings from the third quarter index:
  • 2,191 total programs available
  • 1,135 program administrators
  • 91.7% of programs are funded – up from 90% from June
  • 39% do NOT have a first-time homebuyer requirement
  • 17% allow owner-occupied multifamily properties
  • 25% are available state-wide
  • Majority of programs are Community Seconds — providing down payment and closing cost assistance

Programs by Region

Region

Total Programs

Funded Programs

Program Administers

% of Total Programs

% of Funded Programs

Northeast

327

318

192

14.9%

97.2%

South

821

756

382

37.5%

92.1%

Midwest

367

342

192

16.8%

93.2%

West

659

576

353

30.1%

87.4%

Nationwide Programs

17

17

16

0.8%

100.0%

Total

2191

2009

1135

100.0%

91.7%

“The Harvard Joint Center for Housing Studies found that in many metro areas across the country, more than 50 percent of renters could afford to own a home,” said Chrane.

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