87 Percent of U.S. Homes Qualify for Down Payment Help
RealtyTrac recently released a Down Payment Resource (DPR) on the availability of down payment programs across the country. Out of more than 78 million U.S. single family homes and condos, more than 68 million (87 percent) would qualify for a down payment program available in the county where they are located based on the maximum price requirements for those programs and the estimated value of the properties.
“Many homebuyers, especially Millennials, haven’t fully investigated their home financing options because are pessimistic about qualifying for a mortgage,” says Rob Chrane, president and CEO of Down Payment Resource. “Our Homeownership Program Index highlights the wide range and availability of down payment programs available to today’s homebuyers. In fact, 91 percent of the 2,290 programs in our registry have funds available to lend to eligible buyers. Plus, income limits vary depending on the market and programs extend beyond just first-time homebuyers. It’s important for buyers to research down payment programs as part of their loan shopping process."
For the report, RealtyTrac looked at 2,290 down payment programs from Down Payment Resource’s Homeownership Program Index and found the following:
Other major program types:
o First mortgage loans with below-market interest rates or 100 percent financing.
o Mortgage Credit Certificates (MCCs) that provide up to $2,000 in annual tax credits for the life of the loan.
o Neighborhood Stabilization Program (NSP) loans and grants designed to revitalize communities that have suffered from foreclosures, high unemployment and other concerns slowing housing recovery.
“Historically low homeownership rates across nearly every age demographic have led to a public policy push to lower the barrier to homeownership through down payments as low as 3 percent, but the fact is that the barrier to homeownership is often much lower than even that 3 percent for borrowers who take advantage of one of the myriad down payment help programs available across the country,” says Daren Blomquist, vice president at RealtyTrac. “Prospective buyers — or their agents — willing to put in a few minutes of time to find out what programs are available to them will put themselves in a much better position to successfully purchase a home.”