Down Payment Resource: Homebuyer Assistance Programs Increase to Highest Count on Record

(Image courtesy of Down Payment Resource; Breakout image courtesy of Niklas Jeromin/pexels.com)

Down Payment Resource, Atlanta, released its Q2 Homeownership Program Index report, finding that the number of national homebuyer assistance programs has reached the highest count on record–2,415.

That’s an increase of 42 programs, or 2% from the previous quarter. Compared with Q2 2023, the figure is up 213 programs.

Down Payment Resource attributed the increase to local agencies pulling more heavily from federal funding to support assistance.

“It’s very encouraging to see more state HFAs allocating American Rescue Plan Act (ARPA) and U.S. Department of Health and Human Services (HHS) funds to support homeownership. We think this indicates that local municipalities are increasingly viewing affordable homeownership as a stabilizing force that fosters prosperity within communities,” said Rob Chrane, Founder and CEO of DPR. “We are also particularly encouraged by the rise in programs targeting first-generation homebuyers to ensure more Americans can achieve the dream of homeownership.”

In terms of those ARPA funds, 24 programs are now funded by that source, up 26% from Q1 and 200% year-over-year.

The number of programs funded by HHS stands at 31–up 19% quarterly and 121% annually.

Analyzing the available programs, Down Payment Resource found that 21 programs target first-generation buyers, up 133% from the first quarter of the year.

Currently, 882 programs allow for the purchase of a manufactured home, up 3% from Q1.

From the first quarter to the second, below market rate/resale and grant programs both saw quarterly growth of 12%. Housing choice voucher programs were up by 9% and other homebuyer assistance programs grew 7%.