FACT SHEET

February, 2015

Down payment programs are widely available to today’s homebuyers

Programs increased to 2,290 and 91% have funds available to buyers

Down payment programs expand

• The report expanded to include 2,290 programs, up nearly 100 programs from the September 2014 index.
• Programs from over 1,200 separate housing agencies and program providers are now tracked.
• 18 programs are available nationwide.
• Approximately 91 percent (90.6%) of programs have funds available for homebuyers, down slightly from September (91.7%).
• This quarter’s report saw an increase in Mortgage Credit Certificates (MCC) and Combined Assistance programs, which combine a first mortgage with down payment and closing cost funds.
• Many of these programs can be layered with each other and can often be used with most loan products, including VA and FHA.
• More than 14 percent of programs are special opportunities available exclusively for veterans, buyers with a disability and other professions or special circumstances.

Diversity of programs remains consistent

• The HPI highlights the wide range of opportunities available for all types of buyers, not just for first-time homebuyers. 37 percent of the programs don’t include a first-time homebuyer requirement (down 2% from September).
• While the vast majority of programs (83%) are for single family homes, the index found that 17 percent of programs are also eligible for owner-occupied multifamily properties like duplexes, triplexes and quads (2-4 unit properties).
• More than half of programs (54%) are Community Seconds, a second mortgage for down payment or closing costs issued by an HFA or nonprofit organization with a very low or no interest rate. The payment on the second mortgage may be deferred or forgiven incrementally for each year the buyer remains in the home.
• Other popular program types:
  • First mortgage loans with below-market interest rates, lower or no mortgage insurance, or 100 percent financing.
  • Mortgage Credit Certificates (MCCs) that provide up to $2,000 in annual tax credits for the life of the loan.
  • Neighborhood Stabilization Program (NSP) loans and grants for down payments designed to revitalize communities that have suffered from foreclosures, high unemployment and other concerns slowing housing recovery.

The South leads in total number of programs

• The South still leads in the total number of available homebuyer programs, followed by the West.
• 24 percent of programs are available state-wide, not specific to a county or neighborhood.
• The states with the greatest number of down payment programs remains unchanged:

1.     California

2.     Florida

3.     Texas

4.     Maryland

5.     New York

6.     Georgia

7.     Pennsylvania

8.     Massachusetts

9.     Illinois

10.  Colorado

Special programs and incentives are available to veterans

• There are 329 different programs that include incentives for veterans and other special circumstances or professions.
• Homeownership programs for veterans and military lead the special incentive category, followed by programs for educators, protectors and those with a disability.
  

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“Many homebuyers, especially Millennials, haven’t fully investigated their home financing options because they are pessimistic about qualifying for a mortgage. Our Homeownership Program Index highlights the wide range and availability of down payment programs available to today’s homebuyers,” said Rob Chrane, president and CEO of Down Payment Resource. “It’s important for buyers to research down payment programs as part of their loan shopping process."

About Down Payment Resource’s Homeownership Program Index

The Homeownership Program Index (HPI) measures the availability and characteristics of down payment programs administered by state and local Housing Finance Agencies (HFAs), nonprofits and other housing organizations. It analyzed state, local and national programs available in the DOWN PAYMENT RESOURCE™ registry as of January 14, 2015.