The fourth quarter of 2024 closed with 2,466 down payment assistance programs to help US homebuyers, up by 75 or 7% from one year earlier, according to the Q4 2024 Homeownership Program Index report published by Down Payment Resource (DPR).
Grants accounted for the largest share of year-over-year programs gains (50), followed by combined assistance programs (49), and below-market-rate/resale-restricted programs (21). Local housing finance agencies introduced 72 programs in the fourth quarter, a 60% year-over-year increase, while nonprofits added 50 programs and municipalities added 46 programs during this period.
Programs supporting multi-family purchases increased by 17% year-over-year, rising from 686 in the fourth quarter of 2023 to 805 in 2024’s fourth quarter. Programs for manufactured housing grew by 14% year-over-year, from 804 in in the fourth quarter of 2023 to 914 in the fourth quarter of 2024.
Last year concluded with 196 programs offering incentives for specific groups – 68 programs offered special funding for educators, while 54 programs were for police officers, 49 programs supported military veterans, 47 programs helped firefighters, 44 programs aided healthcare workers, and 47 were exclusive for Native Americans.
“We are pleased to see state and local agencies adapting to the current and ongoing housing affordability crisis by adding new programs and expanding their criteria to allow for the purchase of multi-family and manufactured housing,” said Rob Chrane, founder and CEO of DPR. “We’re also seeing more flexibility in how funds can be used — a down payment, closing costs or buying down their interest rate. In a market with few homes for sale and escalating prices, down payment assistance has become vital for many buyers in helping them to become homeowners and start building wealth through equity.”