Realtytrac and DPR Analysis

Realtytrac and DPR analysis: 87% of U.S. Homes qualify for down payment help

RealtyTrac and Down Payment Resource conducted a report where they looked at 2,290 down payment programs from Down Payment Resource’s Homeownership Program Index and found out the following:

• 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.
• The average amount of down payment assistance across all counties is $11,565.
• At least one down payment program is available in all 3,143 U.S. counties, and more than 2,000 counties have more than 10 down payment programs available to prospective homebuyers.
• More than half of programs (54 percent) are Community Seconds, a second mortgage issued by an HFA or nonprofit organization with a very low or no interest rate. The payment on the second mortgage may be deferred or forgiven incrementally for each year the buyer remains in the home.  In a typical scenario this could reduce the amount of cash needed to close from $20,000 to $200.
• 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 Neighbor Stabilization Program (NSP) loans and grants designed to revitalize communities that have suffered from foreclosures, high unemployment and other concerns slowing housing recovery.

Do you know a first-time homebuyer looking for a home? Have them contact me for a no obligation consultation.

 

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.