Down payments are typically the biggest hurdle for homebuyers to overcome before searching for a new home. But due to the meteoric rise in housing prices since the pandemic, the down payment needed to secure a home is only getting bigger.
But according to the Down Payment Resource (DPR), a firm which tracks homebuyer assistance programs, has released its latest quarterly report finding that nationwide there were 2,351 homebuyer assistance programs in its database during the fourth quarter of 2022, an increase of 1.82% from the third quarter of 2022 marking the fifth consecutive quarter of increases in the number of programs aimed toward buyers.
The Q4 2022 HPI examined a total of 2,351 homebuyer assistance programs that were active as of January 6, 2023. Key findings are as follows:
- The net number of homebuyer assistance programs is up. The total number of programs increased by 42 in Q4 2022. Among them were five nationwide or multi-state programs and seven statewide programs.
- Support for first-time homebuyers increased. The number of programs dedicated to supporting first-time homebuyers now totals 1,315, up from 1,291 in Q3 2022.
- Support for multifamily homebuyers increased. Programs that support multifamily homeownership saw a 5.5% increase over Q3 2022. These programs now make up 29.3% of all homebuyer assistance offerings.
“While economic roadblocks caused the percentage of programs actively receiving funding to decrease marginally in Q4, homebuyer assistance still saw steady growth in 2022,” said DPR CEO Rob Chrane. “Until home prices and mortgage rates decline and the housing market recovers, down payment assistance will be a crucial source of financial support for homebuyers that lack the savings to cover an inflated down payment.”