"First of all, we're working hard to use the word assistance less often. Saying assistance means that down payment programs are just a lifeline for people who can't afford to buy a home otherwise. These programs have, indeed, helped many otherwise eligible borrowers who lack funds for their down payment or cash to close to qualify. But in fact, down payment programs aren't only for cash-strapped, first-time or underserved buyers."
"They are also powerful financial tools for the missing middle, mortgage-ready consumers with steady incomes and credit who may hesitate to drain their savings to buy a home. So how can the mortgage industry start communicating the availability of these programs to the missing middle? We must stop treating DPA only as a niche product and start presenting it as a mainstream wealth-preserving tool for all buyers."
Down payment programs have often been labeled as assistance, implying they serve only cash-strapped or first-time buyers, but they also benefit mortgage-ready consumers. These programs enable otherwise eligible borrowers who lack funds for down payments or cash to close to qualify while preserving savings. The missing middle includes buyers who could qualify for a mortgage but are reluctant to wipe out their savings; DPA helps them maintain liquidity for tuition, emergency reserves, or lifestyle choices. Rising inventory, affordability pressures, elevated mortgage rates, and investor uncertainty make reframing DPA as a mainstream, wealth-preserving strategy timely for sustainable homeownership.
Read at www.housingwire.com
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