Down Payment Resource reports record-breaking DPA availability

Down Payment Resource (DPR) on Tuesday released its Q2 2025 Homeownership Program Index report. It found that 45 new down payment assistance programs launched in the second quarter, bringing the total number of available programs in the U.S. to 2,554 and the number of program providers to 1,340.

The number of programs is a new record, DPR confirmed in a press release. The report also revealed that 967 programs (38%) are available to repeat buyers. Another 257 programs (10%) do not have income restrictions, increasing the number of homebuyers who might qualify for assistance, while 31 programs support first-generation buyers, an increase of 7% over the prior quarter.

Down payment assistance (DPA) programs can reduce a buyer’s loan-to-value ratio by about 6%, helping more mortgage-ready borrowers qualify. Many programs also cover closing costs, prepaid expenses, rate buydowns and mortgage insurance.

Some buyers can combine multiple programs for added savings. This is key as the U.S. median home price rose to $369,000 in Q2 2025, with the average 30-year mortgage rate at 6.82%, according to DPR.

“With home prices rising and interest rates still hovering close to 7%, prospective homebuyers are feeling the pinch heading into the summer, traditionally a very active homebuying season,” said Rob Chrane, founder and CEO of DPR.

“Even with these market headwinds, we are heartened to find more assistance programs than ever — at least one in every U.S. county and 2,000 counties with 10 or more — helping lenders qualify eligible buyers and close more loans in this tough market.”

Looking further into the Q2 data, DPR found that the number of programs supporting manufactured housing grew by 4% — from 971 in Q1 2025 to 1,006 in Q2 2025.

Manufactured homes are considered affordable housing because they are significantly cheaper to purchase than site-built homes. According to the Manufactured Housing Institute, they average $87 per square foot to build versus $166 for traditional homes.

DPA programs that support the purchase of multiunit homes increased by 3% from the prior quarter and now total 861 programs. Of these, a growing number support the purchase of three-unit homes (573) and four-unit homes (546).

Below-market-rate and resale-restricted programs, which offer housing at prices lower than that of the open market, increased by 9%.

Across all DPA programs, 81% are deferred payment programs, a 2% increase from the previous quarter. With a deferred payment loan, borrowers don’t make monthly payments and the balance is typically due when they sell or refinance, or when the loan matures.

Many of these loans are also forgivable; 53% of DPAs offer partial or full forgiveness over time as long as the homeowner meets certain requirements.

More than 1,000 programs (40%) were offered through municipalities or local program providers, a 2% increase over the previous quarter and up 46% from a year ago.

Programs sponsored by employers now represent 3% of the total, up 33% year over year. Housing authorities — independent governmental bodies that provide and manage affordable housing options for low-income, elderly and disabled buyers — accounted for 4% of programs, up 1% from the previous quarter.

Nearly 200 programs offer special incentives based on the buyer’s occupation or other characteristics. Of these, 68 offer assistance for educators, 52 for Native Americans, 45 for military veterans and 35 for active-duty military. These buyers can also qualify for many of the other 2,554 programs in the DPR database, the release noted.

Lastly, 118 programs are “multi-state,” a 31% year-over-year increase, and are available for buyers in two states or more. The report also highlighted a growing number of in-state programs in Hawaii, Missouri, Oklahoma, Pennsylvania and Virginia.