Stop leaving deals on the table: how lenders can use DPA to win the “missing middle”

We have known each other for years and frequently appear on the same panel or podcast. Recently, Mosi has made some points to address some of the challenges of down payment assistance (DPA) programs, and we wanted to share and build on those thoughts because they are major shifts we feel the industry needs to make.

First of all, we’re working hard to use the word “assistance” less often. Saying “assistance” means that down payment programs are just a lifeline for people who can’t afford to buy a home otherwise. These programs have, indeed, helped many otherwise eligible borrowers who lack funds for their down payment or cash to close to qualify. But in fact, down payment programs aren’t only for cash-strapped, first-time or underserved buyers. They are also powerful financial tools for the “missing middle,” mortgage-ready consumers with steady incomes and credit who may hesitate to drain their savings to buy a home. 

So how can the mortgage industry start communicating the availability of these programs to the missing middle? We must stop treating DPA only as a niche product and start presenting it as a mainstream wealth-preserving tool for all buyers. As HousingWire reported in Inside the 2025 housing market: inventory growth, affordability pressure, and what comes next, the current state is marked by “rising inventory, affordability challenges, elevated mortgage rates, and investor uncertainty.” That makes it time to reframe these DPA programs as strategies to help buyers of varied backgrounds and income levels achieve sustainable homeownership without sacrificing financial stability.

Meet the buyers you’re overlooking

Who is the “missing middle?” The missing middle includes buyers who could qualify for a mortgage but are reluctant to wipe out their savings to do it. With down payment programs, these buyers can preserve liquidity while stepping into ownership, keeping money in the bank for college tuition, emergency reserves or even lifestyle choices that matter to them. 

Many program providers have already risen to the challenge of serving this wider audience, offering larger benefits and raising home price caps. For example, across all programs in Down Payment Resource’s database, of the 2,578 currently available nationwide, 1,599 (or 62%) have an average income limit exceeding $100k across the program’s footprint. 

DPA is everywhere, and your competitors know it

You are behind the curve if you still think down payment programs are scarce or stingy. According to Down Payment Resource’s Q2 2025 Homeownership Program Index report, every U.S. county has at least one program — all 3,143 of them. More than 2,000 counties have 10 or more. 

These programs average about $18,000 in benefits for homebuyers, enough to materially reduce the upfront burden of buying and potentially lower a borrower’s loan-to-value ratio by 6%. For a loan officer, that can mean moving a “maybe” buyer across the finish line without requiring deep discounting or rate concessions, and giving a borrower in a higher income bracket some cushion for home improvements.

Don’t let these myths cost you closings

Myth 1: DPA programs are only for struggling buyers

Mosi’s refrain — “Talk to me like I’m Taylor Swift” — cuts to the heart of the matter. We need to speak to every buyer as if they are seeking wealth-building opportunities, not charity. In reality, everyone wants to know what programs are available. Professional athletes ask. Six-figure earners ask. These programs aren’t a last resort; they’re a smart financial strategy.

Myth 2: DPA is only for first-time or underserved buyers

Decades of marketing have reinforced this stereotype, framing DPA as an “assistance” product for a narrow audience. In truth, these programs are available across income levels, backgrounds, and communities. Framing them as universal tools — not targeted aid — makes them relevant to every qualified buyer.

Myth 3: DPA is complex and time-consuming

That may have been true 20 years ago, when lenders faxed 30-page compliance packages and waited a week for approval. Today, most programs can be submitted digitally, with approvals automated or delivered in 24 to 48 hours. They’re also designed to stack easily with seller concessions or temporary buydowns, making it simple for a loan officer to present DPA side-by-side with rate scenarios in a single borrower consultation.

Make DPA standard for every deal

We are urging real estate agents and lenders to stop assuming who does or doesn’t need help and offer every qualified buyer at least two options, one with DPA and one without DPA. By framing down payment programs as a choice, not a need, you position yourself as the trusted advisor and keep clients from shopping elsewhere.mel

We also need to stop projecting poverty when discussing down payment programs. The missing middle does not ask, “Can I buy a house?” Instead, it asks, “Can I buy a house without draining my savings?” Lenders who position themselves as advisors offering real choices — with and without DPA — empower these buyers to make one of the most important financial decisions of their lives with confidence instead of compromise.

The takeaway is simple: Lenders integrating DPA into every borrower conversation expand their pipeline, close more deals, and give clients confidence that they can buy without compromise. But realizing this opportunity requires more than just process change — it demands a shift in discussing these programs. When we replace the language of “assistance” with the language of financial strategy, we change the narrative, broaden the audience, and position DPA as a tool for the missing middle as much as for anyone else. Down payment programs can help serve borrowers in the missing middle, but only if we change our thinking — and the words we use — first.

Rob Chrane is the CEO of Down Payment Resource, the nationwide database of homebuyer assistance programs. Mosi Gatling is the Senior Vice President of Strategic Growth and Expansion at New American Funding. 
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: zeb@hwmedia.com.