Funding Buydowns Popular

Down Payment Resource (DPR), a provider of homebuyer assistance program data and solutions, reports that homebuyer assistance program administrators are responding to the mounting home affordability crisis by rapidly rolling out new homebuyer assistance programs and funding buydowns, as there are now 2,256 homebuyer assistance programs available to help people affordably finance homes, an increase of 54 programs over Q2’s totals. “Most first-time homebuyers are well aware that interest rates are hitting generational highs, but what they are not hearing is that there are 2,256 homebuyer assistance programs available to help,” said Rob Chrane, Founder and CEO of Down Payment Resource.
“Program providers are working around the clock to ensure the programs they offer meet the needs of their markets. For this reason, many programs now allow funds to be used for buydowns and other popular financing strategies that take the edge off of monthly mortgage payments.”

DPR’s Q3 2023 Homeownership Program Index report examines the 2,256 homebuyer assistance programs that were active as of October 25, 2023, and found two hundred and ninety-five programs will fund buydowns which allow borrowers to lower their interest rates by paying an upfront fee. Plus, two hundred and fifty-three programs will fund permanent buydowns which allow borrowers to lower the interest rate over the life of the mortgage loan by paying an upfront fee. Fifty new agencies began offering programs. More agencies have stepped up to administer homebuyer assistance programs as affordability worsens. Now, a total of 1,373 agencies provide assistance to aspiring homeowners, a 3.78% increase over the previous quarter.

Source: DSNews