Down payment assistance programs continue to play a role in expanding access to homeownership, offering an average benefit of approximately $18,000. DPR said the level of assistance reduces a homebuyer’s loan-to-value ratio by approximately 8.8%, improving borrower qualifications and overall loan profiles.
Many programs also cover closing costs, prepayment fees, mortgage interest rate buydowns, and mortgage insurance cost reductions. In some cases, eligible buyers may be able to stack multiple programs.
“Affordability will remain the defining challenge for homebuyers in 2026, and down payment programs are one of the most practical tools lenders have to address it,” DPR founder and CEO Rob Chrane said in a statement.
“When DPA lowers the loan-to-value ratio and helps cover upfront costs, it not only improves borrower eligibility; it also improves loan quality. As prices remain high and interest rates fluctuate, lenders that proactively integrate DPA into their origination strategies are better positioned to convert qualified demand into sustainable homeownership.”
After evaluating the programs, DPR’s report found that every U.S. county has at least one down payment assistance program, and more than 2,000 counties have 10 or more.
California is the state with the most programs, with 353 programs from 223 providers. Florida follows with 196 programs from 128 providers, while Texas has 128 programs from 63 providers.
DPR reported that 1,599 programs (62%) have an average income limit of more than $100,000 across their footprint. Another 270 programs (10%) have no income limits, a 15% increase from the previous year.
Of all programs, 1,639 (63%) are open to first-time buyers, an increase of 8% from a year ago. Thirty-three programs support first-generation homebuyers, defined as buyers and their parents who have never owned a home, up 32% year over year.
The majority of programs (56%) are second mortgage programs, up 4% year over year, while 242 programs are first mortgage programs, up 1%. More than 1,000 programs offer partial or full forgiveness over time, up 5%.
By housing type, 1,014 programs involve the purchase of manufactured homes, a slight decrease from the previous quarter but an increase of 14% from a year earlier. Buyers of multifamily homes (two to four units) are eligible for 923 programs, an annual increase of 15%, and buyers of new construction homes are supported by 2,113 (81%) of the programs. DPR noted that this latest figure is a new data point with no historical year-over-year comparison.
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