• Assistance programs may offer grants, funds for closing costs, a second loan, a low-interest mortgage with no PMI or a tax credit.
  • Funding comes from federal sources, bond-funded programs, state-sponsored housing and TBA (to-be-announced) and capital markets funding.
  • Without clear guidance, some lenders may decide to pull back on using these programs for fear of an audit.
  • Explore local options and talk to lenders to fully understand the loans they originate.

In a market where first-time homebuyers consistently cite the down payment as their No. 1 challenge, there’s a battle brewing behind the scenes — a fight to preserve the wide range of down payment programs that propel scores of new buyers into homeownership.

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