Down Payment Resource (DPR) today released its Q1 2025 Homeownership Program Index (HPI) report, which saw the number of entities offering homebuyer assistance programs increase by 55 year-over-year.
The number of programs increased by 43 during the first quarter, bringing the total number of available programs to 2,509 — the highest recorded by DPR. That marks a 2% increase from Q4 2024.
Of the programs, 952 programs (38%) are available to repeat buyers, 240 programs (10%) do not have income restrictions and 19 programs support first-generation homebuyers, an increase of 16% over the last quarter.
Lenders can use down payment assistance (DPA) to lower a homebuyer’s loan-to-value (LTV) ratio by an average of 6%. The average benefit is $18,000.
“Rates are still high and prices keep climbing, but we’re seeing expanded program offerings, new providers and greater flexibility in how funds are used — not just for down payments but also to cover closing costs, lower the rate or meet other buyer needs,” said Rob Chrane, founder and CEO of DPR. “More programs now include manufactured and multi-family homes, opening new paths to affordability and steady income. For lenders, that means more ways to qualify buyers and close loans in a tough market.”
”Other homebuyer assistance” programs increased 35% from the previous quarter, below-market-rate (BMR)/resale-restricted programs, which offer housing at prices lower than the open market, with restrictions on resale to ensure affordability for future buyers, typically low-to moderate-income households, increased 18% and grant programs grew 7%.
Other stats:
- 80% of DPAs in Q1 were deferred payment programs, a 3% increase from the previous quarter. Deferred payment loans, which are often forgivable, mean that borrowers don’t make monthly payments, and the balance is typically due when they sell or refinance or the loan matures.
- Over half (53%) of DPAs in Q1 offered partial or full forgiveness over time, as long as the homeowner meets certain requirements, such as maintaining primary residency.
- Of the programs, 990 (39%) were offered through local housing finance agencies (HFAs), a number that was virtually unchanged from the previous quarter. Nonprofits accounted for 21%, a 2% increase over Q4 2024. State FHAs represented 18%.
- Manufactured housing programs saw growth, increasing from 914 in Q4 2024 to 971 in Q1 2025. For multifamily housing, a total of 833 programs were available, marking a 3% increase from Q4 2024. Of these, a growing number of programs support purchasing three-unit homes (562) and four-unit homes (536).
- A total of 20 programs offered special funding to surviving military spouses, an 18% increase from the previous quarter, while energy efficiency programs grew by 17%. Other incentive programs included 69 for educators, 56 for protectors (jobs focused on safeguarding people, property or information), 50 to assist military veterans and 50 for Native Americans.
- Of the 2,509 homebuyer assistance programs, 81% of programs are funded, 10% of programs are inactive, 4% of programs have a waitlist for funding and 5% of programs are temporarily suspended.
- Of the programs, 74% in the database are for down payment or closing cost assistance, 10% of programs are first mortgages, 3% of programs are Mortgage Credit Certificates (MCCs) and 13% are other program types.
