Stop Leaving Deals on the Table: How Lenders Can Use DPA to Win the ‘Missing Middle’

We have known each other for years and regularly appear on the same panel or podcast. Recently, Mosi put forward some points to address some of the challenges of down payment assistance (DPA) programs, and we wanted to share and build on those thoughts as they are big changes that we believe need to be made by the industry.

First of all, we are working hard to use the word “help” less often. When you say “help,” it means that down payment programs are just a lifeline for people who otherwise couldn’t afford to buy a home. Indeed, these programs have helped many borrowers who would otherwise qualify and who did not have money for their down payment or cash to qualify. But in fact, down payment programs aren’t just for cash-strapped, first-time, or under-resourced buyers. They are also powerful financial tools for the “missing middle,” mortgage-ready consumers with stable income and credit who may be hesitant to tap their savings to buy a home.

So how can the mortgage industry begin communicating the availability of these programs to the missing middle? We need to stop treating DPA solely as a niche product and start presenting it as a mainstream wealth preservation tool for all buyers. As HousingWire reported in Inside the housing market of 2025: inventory growth, pressure on affordability and what comes nextthe current situation is characterized by “rising inventories, affordability challenges, higher mortgage rates and investor uncertainty.” That makes it time to reframe these DPA programs as strategies to help buyers of different backgrounds and income levels achieve sustainable homeownership without sacrificing financial stability.

Meet the buyers you’re overlooking

Who is the ‘missing middle’? The missing middle consists of buyers who could qualify for a mortgage, but are reluctant to sacrifice their savings to do so. Down payment programs allow these buyers to maintain liquidity as they become owners, by keeping money in the bank for college tuition, emergency reserves, or even lifestyle choices that are important to them.

Many program providers have already risen to the challenge of serving this broader audience, delivering greater benefits and raising home price caps. For example, of all programs in Down Payment Resource’s database, of the 2,578 programs currently available nationwide, 1,599 (or 62%) have an average income limit of more than $100,000 across the program’s entire footprint.

DPA is everywhere and your competitors know it

You’re behind the times if you still think down payment programs are scarce or stingy. According to Down Payment Resource’s Homeownership Program Index report for the second quarter of 2025, every U.S. county has at least one program: all 3,143 of them. More than 2,000 provinces have 10 or more.

These programs average about $18,000 in benefits to homebuyers, enough to significantly reduce pre-purchase costs and potentially lower a borrower’s loan-to-value ratio by 6%. For a loan officer, that could mean getting a “maybe” buyer across the finish line without needing big discounts or rate concessions, and giving a higher-income borrower a cushion for home improvements.

Don’t let these myths cost you closings

Myth 1: DPA programs are only for struggling buyers

Mosi’s chorus – “Talk to me like I’m Taylor Swift” – gets to the heart of the matter. We must speak to every buyer as if they are looking for wealth building opportunities, not charity. In reality, everyone wants to know what programs are available. Professional athletes wonder. That’s what six-figure earners ask. These programs are not a last resort; it’s a smart financial strategy.

Myth 2: DPA is only for new or underserved buyers

Decades of marketing have reinforced this stereotype and portrayed DPA as a “helper product” for a limited audience. In reality, these programs are available to all income levels, backgrounds and communities. Viewing them as universal tools – rather than targeted aids – makes them relevant to every qualified buyer.

Myth 3: DPA is complex and time-consuming

That may have been true 20 years ago, when lenders faxed 30-page compliance packets and waited a week for approval. Today, most programs can be submitted digitally, with approvals automated or delivered within 24 to 48 hours. They are also designed to easily combine with seller concessions or temporary buydowns, making it easy for a loan officer to present DPA alongside interest rate scenarios in one consultation with the borrower.

Make DPA standard for every deal

We urge agents and lenders to stop assuming who does or does not need help and offer every qualified buyer at least two options, one with DPA and one without DPA. By treating down payment programs as a choice rather than a necessity, you position yourself as the trusted advisor and prevent customers from shopping elsewhere.

We also need to stop projecting poverty when we talk about down payment programs. The missing middle doesn’t ask, “Can I buy a house?” Instead, it asks, “Can I buy a house without draining my savings?” Lenders who position themselves as advisors offering real choices – with and without DPA – enable these buyers to confidently make one of the most important financial decisions of their lives rather than compromise.

The takeaway is simple: Lenders who integrate DPA into every conversation with borrowers expand their pipeline, close more deals and give customers the confidence they can buy without compromise. But realizing this opportunity requires more than just process change; it requires a change in the discussion about these programs. When we replace the language of “help” with the language of financial strategy, we change the narrative, broaden the audience, and position DPA as a tool for the missing middle as much as anyone else. Down payment programs can help serve borrowers in the missing middle, but only if we first change the way we think—and the words we use.

Rob Chrane is the CEO of Down Payment Resource, the national database of homebuyer assistance programs. Mosi Gatling is Senior Vice President of Strategic Growth and Expansion at New American Funding.
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners. To contact the editor responsible for this piece: [email protected].

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