Down Payment Resource: Down Payment Assistance Programs Increase Again in Q2

(Image courtesy of Jan van der Wolf/pexels.com)

Down Payment Resource, Atlanta, has released its Q2 2026 Homeownership Program Index report, finding there were 2,746 programs available nationwide in the quarter.

That’s up 67 from Q1.

The programs help reduce loan-to-value ratios by an average of 8.8%.

Support for first-time buyers remains strong, with 62% available to first-time homebuyers, a 2% increase from Q1. And, 35 programs support first-generation buyers, up 6% from Q1.

Second-mortgage programs are the most popular structure, at 56%, and often are set up as deferred or forgivable loans that reduce upfront costs. Grant programs requiring no repayment are 9% of all program types, up from 8% in Q1.

“Quarter after quarter, the universe of available programs keeps expanding, and so does the flexibility they offer,” said Rob Chrane, founder and CEO of Down Payment Resource. “The surge in grant programs is a good example. These aren’t resources for a narrow slice of buyers. They’re mainstream financial strategies that lenders and real estate professionals should be putting in front of every qualified borrower.”

Municipalities account for 39% of all programs, nonprofits for 22%, and state housing finance agencies for 18%. Local HFAs provide 8% and tribal organizations for 2%.

Programs supporting multifamily properties (2-4 units) amounted to 962, up 3% from the previous quarter. Programs that support manufactured homes also increased to 1,089, also a gain of 3% from Q1. Eighty percent support new construction and 93% support existing construction.

Targeted incentive programs also increased from Q1–209 programs offer special incentives based on occupation or borrower characteristics. That’s an increase of three programs from the prior quarter. For example, there are 75 programs serving educators, 58 programs serving Native American buyers and 54 programs serving veterans.

Of the 2,746 programs identified by DPR, 77% are active and funded, 12% are inactive, 6% are temporarily suspended and 5% have a waitlist for funded.