Now is perhaps the best time in U.S. history for prospective homebuyers to apply for down payment assistance, according to a Georgia-based firm that tracks such programs.
Local governments and nonprofits added 43 new down payment assistance programs in the first quarter of 2025, pushing the nationwide total to a record 2,509, according to Down Payment Resource.
"The data also shows a growing number of providers and more flexibility in how funds can be used — not only for down payments but for other home buying costs and to purchase manufactured and multifamily homes," Rob Chrane, the CEO of DPR, said in a statement.
The programs are being offered as home prices soar across the nation, driving the cost of homeownership further out of reach for middle-class Americans.
DPR tallies down payment programs funded by government agencies and nonprofits, so its count does not include offerings from commercial mortgage lenders. The company keeps a quarterly count of programs and sends them to real estate agents and mortgage lenders.
California leads the nation in most programs offered at 321, according to the DPR's latest count. Florida has the second highest at 193, and Texas is third at 116. Maine and North Dakota tie for the fewest programs at eight.
The number of programs designed for buyers of manufactured homes — those built in an off-site facility — grew 6% from 914 in the fourth quarter last year to 971 in the first quarter of 2025.
Applicants typically must meet an annual income threshold
At their core, down payment programs give homebuyers additional funds for covering closing costs or beefing up their upfront money to their mortgage company. Applicants typically must meet an annual income threshold, although the exact figure differs depending on where someone applies.
Down payment programs typically funnel to homebuyers as either a grant or a forgivable loan. Most down payment programs on the books today — 1,557 — cater to first-time homebuyers, according to DPR data.
To be sure, first-time and repeat home buyers alike are feeling the pocket pinch of rising home prices. The median existing-home sale price rose from $392,900 in March 2024 to $403,700 last month, according to the National Association of Realtors. Mortgage rates slightly above 6.8% are also driving up the cost of homeownership.
Prices have climbed in recent years because the number of available homes for sale has not kept pace with the intense demand Americans created right after the pandemic, housing researchers have said. Home prices will likely remain elevated in 2025 for that same reason, experts said.
"Although inventories have improved, they remain far below their pre-pandemic level," economists at Wells Fargo said this week in a research note about the housing market. "As a result, low supply will likely continue to favor positive price appreciation, adding to the affordability challenge."