Updated January 2018

2018 Down Payment Assistance: Gaining Traction

2018 down payment assistance programs have arrived.

Widespread information and expanded offerings for these have resulted in more homebuyer applications. One study, in particular, is showing just how homebuyers are reaping the benefits. RealtyTrac® and Down Payment Resource released a joint report indicating that these programs save qualified homebuyers over $17,000 over the life of a loan.

An analysis of 513 found an “average savings of $5,965 on the down payment for a median-priced home, and an average savings of $11,801 on monthly house payments over the life of the loan for a median-priced home.”

Residents in these counties had the most to gain by opting for a down payment assistance program.

• Kauai County, Hawaii (191 percent of annual wages)
• Shasta County (Redding), California (176 percent)
• Sevier County (Sevierville), Tennessee (161 percent)
• El Dorado County, California in the Sacramento metro area (160 percent)
• Allen County (Lima), Ohio (157 percent)

The Options Out There

• Grants: You don’t need to pay these funds back for as long as you live in the home for a certain period of time.
• Second mortgage loans: Sometimes called silent mortgages because of low to no interest rates and deferred payments for a certain period of time. Second mortgages are generally the most common source of down payment.
• Tax credits: These are issued by state or local governments via housing finance agencies. Mortgage credit certificates (MCC) reduce the income tax you need to pay, freeing up more income to pay upfront homeownership costs like down payment or closing costs.

Getting Started

Here is a handful of organizations and local agencies that can provide information about 2017 down payment assistance based on territory.

New York State Homes and Community Renewal (HCR)
National Homebuyers Fund, Inc. (NHF)
Sacramento Housing and Redevelopment Agency (SHRA)
Texas State Affordable Housing Corporation (TSAHC)

We are constantly updating our down payment assistance search tool – so please search for your state and county to see the down payment assistance programs available in 2018.

Programs come and go all of the time, and we are working hard to keep the information up-to-date and reliable.