Weekly DPA Trends

October 30, 2020 updates

DPA News: New & Revamped Programs

DPA providers, are you looking to revamp and modernize your program?

Participating lenders, are you wondering if DPAs are still viable, or can be made so? Are you looking for affordability solutions?

We keep hearing “local DPAs are going away” and “there’s no money from cities and counties anymore.”  Our response…wrong!

Case in point…

Check out what the City of Pleasanton, California, has been doing in recent months. They’ve revamped their DPA program to offer $100,000, up from $20,000. This is happening all over the country. Municipalities are reviewing their DPA programs against market conditions and developing creative solutions to support their communities.

Elsewhere, NeighborhoodLIFT is coming to the Twin Cities with up to $15,000 in down payment assistance. Check in with NeighborWorks Home Partners on November 3rd for more eligibility details.

Still wondering if a DPA has a meaningful impact for new buyers? Shout out to Warrick Dunn and Habitat for Humanity of Metro Denver for helping Crystal into a (furnished) home with down payment help. These programs are life-changing!

MassHousing launched Workforce Advantage (WFA) 2.0 offering up to 5% or $25,000 (whichever is less) in numerous Gateway Cities and the City of Boston. The program increases assistance elsewhere in Massachusetts up to 5% instead of 3% of price, still up to $15,000 (whichever is less). Assistance is a 0%, deferred loan due upon sale.

How COVID has Impacted NextGen Buyers

Cultural Outreach published their 2020 NextGen Homebuyer Report, exploring the impact of COVID on young buyers’ aspirations and preferences. The report explores the impact of increased time at home, remote work, migration patterns and more. Additionally, 68% of prospective buyers cited affordability as their biggest fear in the homebuying process. HousingWire provides an overview. Read up to learn how to meet tomorrow’s buyers where they are, including with financial education.

Speaking of Migration

According to Redfin, many buyers are leaving high-cost markets and seeking less expensive destinations amidst the pandemic. There are likely political and other factors at play, but the evidence is overwhelming. Buyers are leaving expensive cities and seeking more favorable — and affordable — environs.

Are you tracking these patterns?

Where are the growth markets? New states? Smaller metros? Rural markets?

What will municipal budgets look like in the cities being evacuated?

Will DPAs help those renters plant roots in their new locale?

Contact Down Payment Resource to explore DPA strategies, access state and local programs across your footprint, and bring these increasingly valuable products to your sales force.

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