Down Payment Resource: Homeownership Programs Up Year-Over-Year

(Image courtesy of Curtis Adams/pexels.com)

Down Payment Resource, Atlanta, released its Q4 Homeownership Program Index, finding that there were 2,619 homeownership programs nationwide.

The total fell slightly–by five programs–from Q3, but was still 6% higher than one year before.

The average benefit is approximately $18,000 and 74% (1,941 programs) are for down payment or closing cost assistance. On average, assistance reduces a borrower’s loan-to-value ratio by 8.8%.

Every U.S. county has at least one homeownership program; more than 2,000 counties have 10-plus.

California has the most, at 416 programs from 260 providers, followed by Florida (264 programs from 167 providers) and Texas (190 programs from 99 providers).

Income limits are rising, the report found. In all, 1,599 programs (62%) have average income limits exceeding $100,000 across their coverage areas. And, 270 programs have no income limits. Programs that fall in that category are up 15% year-over-year.

Programs supporting first-time buyers increased to 1,639, up 8% year-over-year, and programs supporting first-generation buyers are up 32% year-over-year to 33.

A majority–2,113–support newly built homes, up slightly from Q3, and 923 programs support multifamily properties, up 15% year-over-year. Additionally, 1,014 programs support manufactured homes, up 14% year-over-year.

Two hundred and one programs support specific populations, including 71 that support educators, 56 that support Native American buyers and 54 that support veterans.

Of the 2,619 programs, 77% are funded (up 2% year-over-year), 13% are inactive, 4% have a waitlist for funding and 6% are temporarily suspended.

“Affordability will remain the defining challenge for homebuyers in 2026, and down payment programs are one of the most practical tools lenders have to address it,” said DPR Founder and CEO Rob Chrane. “When DPA lowers loan-to-value ratios and helps cover upfront costs, it doesn’t just improve borrower eligibility; it improves loan quality. As prices remain elevated and rates fluctuate, lenders that proactively integrate DPA into their origination strategies are better positioned to turn qualified demand into sustainable homeownership.”