From First-Time Buyers to Multifamily Investments: Navigating 2024's Homebuying Programs

There are now more down payment assistance programs than ever before, according to the Down Payment Resource's (DPR) Q2 2024 Homeownership Program Index (HPI) Report, which currently tracks a whopping 2,415 programs. That’s 213 more programs than a year ago, marking an 11% increase — the largest annual jump since DPR started tracking this data in Q3 2020.

DPR's latest report highlights a wider variety of down payment assistance (DPA) programs.

For example, there's a fresh breakdown of the 724 programs allowing multifamily properties to be purchased. Out of those, 724 are for two-unit properties, 491 for three-unit properties, and 466 for four-unit properties.

Income limits are a big factor in these programs, but not all of them have such restrictions.

While 2,193 programs do have income limits, 222 don’t — that’s a 27% increase from a year ago.

The report also highlighted how state and local agencies use federal funds to help struggling homebuyers. For instance, 275 programs are funded by Community Development Block Grants, up 14% from last year.

The US Department of Health and Human Services (HHS) now provides funding for 31 programs, a 19% increase from last quarter. Plus, 24 programs get funding through the American Rescue Plan Act (ARPA) stimulus plan, marking a 26% increase from last quarter.

First-time buyer programs are also gaining traction.

Twenty-one programs now target first-generation buyers, a staggering 133% increase from Q1 2024. DPR noted that first-generation homebuyers are less likely to get financial help from their parents for a down payment and other upfront costs, which makes these programs incredibly valuable.

The breakdown of homebuyer assistance programs by type hasn't changed much since the previous quarter. Out of the 2,415 programs, 82% are currently funded, 9% are inactive, 4% have a waitlist for funding, and 5% are temporarily suspended.

As for the types of assistance, 73% are for down payment or closing cost assistance, 9% for first mortgages, 4% are Mortgage Credit Certificates (MCCs), and 14% fall under other categories. Among these programs, 60% are for first-time buyers, while 40% are open to repeat buyers.

In summary, the rise in available programs, the increasing support from federal funds, and the surge in first-generation buyer assistance all point to a concerted effort to make homeownership more accessible for a broader range of Americans.

Whether you're a first-time buyer or interested in purchasing a multifamily property, there's probably a program that can help you achieve your homeownership dreams. Contact us to learn more about the homebuying and home loan programs you may qualify for.