The Down Payment Resource Q3 2024 Homeownership Program Index Report

DPR’s Q3 2024 Homeownership Program Index (HPI) Report, which highlights the homebuyer assistance programs available each quarter to help make homeownership more accessible, has revealed some exciting findings. First, we’ve set yet another record for the number of nationwide programs with all 2,444 currently being tracked by DPR. Plus, we’ve noted an uptick in the number of programs allowing for the purchase of multifamily and manufactured housing, which helps lenders widen their inventory box.

Derived from our comprehensive DOWN PAYMENT RESOURCE® database, the HPI report highlights the latest trends in down payment assistance (DPA) programs.

Twenty-nine homebuyer assistance programs were added in Q3, for a total of 2,444 programs. That’s 192 more programs than a year ago, when we counted 2,256, an increase of 8%.

Our Q3 2024 edition of the report reveals a further increase in the availability and diversity of DPA programs, including a new breakdown of the programs that allow for the purchase of multifamily properties. Of those, we found that 777 allow for two-unit properties, 526 allow for three-unit properties, and 501 allow for four-unit properties. 

While 2,218 programs have income limits, 226 do not, a 20% increase from a year ago. This latitude may make it easier for lenders to qualify at moderate income levels who need assistance with their down payment, closing costs, or other costs of homeownership.

Program trends

The number of programs offered in Q3 2024 increased by 29 over the previous quarter, raising the total number of programs to 2,444 from 2,415. 

• 949 municipalities offered DPA programs. Municipalities represented the majority of funding sources at 949 programs, representing 39% of funding source totals for Q3 2024, up 40% from Q3 2023. Nonprofits were the second highest funding source, 21% in Q3 2023, followed by state HFAs at 19%. A few of these sources have seen steady increases from federal program funding sources including the American Rescue Plan Act (ARPA) and US Department of Health and Human Services (HHS).

Program spotlight: Riverside County American Rescue Plan Act (ARPA) First Time Home Buyer (FTHB) Program offers homebuyers a 15-year, 0% interest, deferred forgivable loan for 20% of the purchase price up to $100,000 (whichever is less). The program’s maximum home purchase price is $536,750 and income can be up to 120% the area median income (HUD limits).

• 898 programs support manufactured housing, up 15% from Q3 2023. Manufactured homes, which are built in factories and assembled at a home site, are generally considered to be an affordable housing alternative because they are cheaper to build and purchase than site-built homes, costing around $127,000 on average, compared to over $413,000 for a site-built home. 

Program spotlight: The Champlain Housing Trust Manufactured Home Down Payment Loan program offers a $40,000, 0% deferred, forgivable loan with no sales price limits. The program is open to first-time and repeat buyers; however, income is limited to 120% of the HUD AMI limits. 

• 1,455 programs are for first-time homebuyers, a 7% increase from 1,360 Q2 2023, while 22 programs target first-generation buyers, a 5% increase from 921  in Q2 2024. First-time and first-generation homebuyers have been singled out by the Harris Presidential campaign, which proposes 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. The proposal stems from an idea the Biden-Harris administration presented earlier this year, which called on Congress to implement $25,000 in down-payment assistance exclusively for 400,000 first-generation buyers, or first-time buyers whose parents weren’t homeowners, and a $10,000 tax credit for first-time buyers.

Program spotlight: Minnesota Housing Finance Agency’s First-Generation Homebuyer Loan offers homebuyers up to $35,000 in the form of a 20-year, 0% deferred, forgivable loan. Half of the loan is forgiven at 10-years and the rest after 20. Purchase price limits range from $498,257 to $659,550 and income limits range from $111,800 to $142,800.

• Using DPA for purchase of a multi-family property grew by another 7% this quarter, so we’ve subdivided how we track these programs. While all 777 allow purchasing 2-unit properties, 526 allow 3 units and 501 allow for four. Typically, the buyer must reside in one of the units but can rent the others, allowing them to be both a buyer and an investor. 

Program spotlight: The City of Haverhill’s First Time Homebuyer Downpayment Assistance Program offers up to $15,000 as a 5-year, 0% deferred, loan that’s forgivable at 20% per year. Purchase price limits range from $498,000 to $939,000 and income limits range from $68,500 to $129,100.

Breakdown of new programs

Here is a breakdown of the homebuyer assistance programs added since Q2 2024 by assistance type:

• Below Market Rate (BMR)/resale and grant programs saw the largest quarterly growth at 8%. Grant assistance programs grew by 7% and other homebuyer assistance programs grew 6%.
• Energy Efficiency programs grew by 25%, surviving (military) spouse programs increased by 14%, and Native American programs increased by 5%.

Breakdown of all programs

Overall, the breakdown of homebuyer assistance programs available by type was virtually the same as the previous quarter. 

• Of the 2,444 homebuyer assistance programs:
  • 81% of programs are currently funded.
  • 10% of programs are currently inactive.
  • 4% of programs have a waitlist for funding.
  • 5% of programs are temporarily suspended.
• 73% of programs in the database are for down payment or closing cost assistance. 
• 10% of programs are first mortgages.
• 3% of programs are Mortgage Credit Certificates (MCCs).
• 14% are other program types.
• 60% of programs are for first-time buyers, while 40% allow repeat buyers.

A complete, state-by-state list of homebuyer assistance programs can be viewed here. You can also download the full infographic.

Down Payment Resource builds tools that help mortgage lenders, real estate agents, multiple listing services and consumer listing sites build relationships with homebuyers by connecting them with the homebuyer assistance they need.

To learn how Down Payment Resource can help you support homebuyers, contact us.

Methodology

Published quarterly, DPR’s HPI surveys the funding status, eligibility rules and benefits of U.S. homebuyer assistance programs administered by state and local housing finance agencies, municipalities, nonprofits and other housing organizations. DPR communicates with over 1,300 program providers throughout the year to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates (MCCs) and affordable first mortgages, in the DOWN PAYMENT RESOURCE® database.