DPR: 172 New Down Payment Assistance Programs in 2024

(Image courtesy of DPR)

Down Payment Resource, Atlanta, found 172 new homebuyer assistance programs and 75 new program providers emerged in 2024.

That’s a 7% year-over-year increase in the number of programs.

DPR’s Q4 2024 Homeownership Program Index for the fourth quarter found 22 new programs for that time period. Programs now stand at a report high of 2,466.

The report highlighted a growing number of programs to support the purchasing of manufactured and multifamily homes. As of the quarter, 805 programs support multifamily purchases, up 17% from Q4 2023. Of those, 539 allow for 3-unit properties—up 2% year-over-year, and 513 also allow for four-unit properties, up 3% year-over-year.

The number of programs that allow for the purchase of manufactured housing increased by 14% year-over-year in Q4.

There was a 10% year-over-year increase in programs reserved for first-time buyers, from 1,381 in Q4 2023 to 1,518.

Some other program types also saw gains, including second mortgages, below market rate/resale restricted, combined assistance and grant programs.

Energy efficiency programs grew by 50% and surviving military spouse programs grew by 31%. Programs aimed at Native American homebuyers increased by 9%.

There was a 60% year-over-year increase in the number of local housing finance agencies that offered programs.

A total of 968 municipalities offered down payment assistance programs, representing 39% of funding source totals for Q4. Nonprofits represented 21% of funding sources, followed by state housing finance agencies at 19%.

Of the 2,466 programs, 81% are funded, 10% are inactive, 4% have a waitlist for funding and 5% are temporarily suspended.

“We are pleased to see state and local agencies adapting to the current and ongoing housing affordability crisis by adding new programs and expanding their criteria to allow for the purchase of multi-family and manufactured housing,” said Rob Chrane, founder and CEO of DPR. “We’re also seeing more flexibility in how funds can be used–a down payment, closing costs or buying down their interest rate. In a market with few homes for sale and escalating prices, down payment assistance has become vital for many buyers in helping them to become homeowners and start building wealth through equity.”