"Down payment assistance programs continue to play a role in expanding access to homeownership, offering an average benefit of about $18,000. DPR said that the level of assistance reduces a homebuyer's loan-to-value ratio by roughly 8.8%, improving borrower qualification and overall loan profiles. Many programs also cover closing costs, prepaid expenses, mortgage rate buydowns and reductions in mortgage insurance costs. In some cases, eligible buyers can layer multiple programs."
"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, DPR founder and CEO Rob Chrane said in a statement. 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."
"After evaluating the programs, DPR's report found that each U.S. county has at least one down payment assistance program, and more than 2,000 counties have 10 or more. California is the state with the most programs, with 353 programs from 223 providers. Florida follows with 196 programs from 128 providers, while Texas has 128 programs from 63 providers. DPR reported that 1,599 programs (62%) have an average income limit above $100,000 across their footprint."
Down payment assistance programs provide an average benefit of about $18,000 and reduce a homebuyer's loan-to-value ratio by roughly 8.8%, improving borrower qualification and loan profiles. Many programs cover closing costs, prepaid expenses, mortgage rate buydowns and reductions in mortgage insurance costs, and some allow eligible buyers to layer multiple programs. Every U.S. county has at least one program, with over 2,000 counties offering ten or more. California, Florida and Texas lead by program count. A majority of programs have relatively high income limits, many are open to first-time buyers, and second-mortgage structures predominate.
Read at www.housingwire.com
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