Homebuyer Assistance Options Increased In Q3

More homebuyer assistance programs appeared in Q3 2024 as home shoppers struggled with ongoing unaffordability.

The number of national homebuyer assistance programs increased by 29 to 2,444, including a 5% bump in programs for first-generation buyers.

There was an 8% jump in below-market rate/resale programs, a 7% increase in grant-funded programs, and a 6% boost in other homebuyer assistance from Q2 2024.

“We are pleased to see a growing number of these programs, and think they are becoming a targeted way to help first-time and first-generation homebuyers struggling to save for a down payment get into a home they can afford,” said Rob Chrane, founder and CEO of Down Payment Resource. 

“Our data show the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.”

Municipalities accounted for the majority of funding sources, 39%, which is virtually unchanged from last quarter.

A standard 20% down payment on a median-priced home now costs 83% of a typical family’s annual income. This is up from 65% in 2016.

The Harris campaign has doubled down on first-time buyer aspirations. She has promised to build 3 million affordable housing units and provide $25,000 down-payment assistance to first-timers who have paid rent on time for two years.

“More generous support” will be available for first-generation homeowners, the campaign said.

“It’s good to hear about down payment assistance being discussed in a U.S. presidential election campaign, and I hope to see more robust conversations about the topic. The fact that it is being discussed by a candidate for the highest office in the country demonstrates the importance of down payment assistance,” Miki Adams, president of CBC Mortgage Agency, commented.