With high mortgage rates and home prices, the current U.S. housing market presents a number of challenges for first-time homebuyers. However, affordability could improve for many households with an increase in the number of down payment assistance programs available. According to the Homeownership Program Index Report from Down Payment Resource, an organization that connects buyers with assistance programs, there are now 2,415 programs available, after 42 were added during Q2 2024. Year-over-year, 213 more programs were added, an increase of 11% and the largest annual jump since Q3 2020.
Federal funds are being leveraged by state and local agencies to help struggling homebuyers. Two hundred and seventy-five programs are funded by Community Development Block Grants, using allocations from HUD, up 14% from Q2 2023. The US Department of Health and Human Services (HHS) provides funding for 31 programs, a 19% increase from last quarter, while 24 programs provide funding through the American Rescue Plan Act (ARPA) stimulus plan, a 26% increase from last quarter.
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