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Q1 2024 Homeownership Program Index (HPI) Report: Making Homeownership Easier

June 20,2024 | Posted By Jason Risley in Buying

In the first quarter of 2024, home prices increased by 6% compared to last year. This Homeownership Program Index (HPI) Report highlights programs available to make homeownership more accessible. By using data from the DOWN PAYMENT RESOURCE® database, the latest trends in down payment assistance (DPA) programs have been identified.

Increase in Down Payment Assistance Programs
The Q1 2024 report shows a big rise in the number and variety of DPA programs, including those for manufactured and multi-family homes. A total of 79 new homebuyer assistance programs were added, bringing the overall number to 2,373. This is 204 more programs than last year, which is a 9% increase — the largest annual jump since data tracking began in Q3 2020. The number of agencies supporting these programs also increased from 1,238 last quarter to 1,273 in Q1 2024.

Support for Affordable Housing
There has been a significant increase in programs supporting affordable housing purchases, including manufactured and multi family homes. Currently, 856 programs support manufactured housing, up from 703 last year, marking a 22% increase. For multifamily properties, 707 programs are now available, a 9% increase from 647 last year.

Income Limitations and Below Market Rate Programs
Most programs (2,156) have income limits, but the percentage without these limits grew by 11% from the previous quarter and 24% year-over-year. The report also highlights an increase in Below Market Rate (BMR)/resale programs, rising from 37 in Q1 2023 to 77 in Q1 2024, a 108% increase.

Program Trends in Q1 2024
The total number of programs increased by 79 in Q1 2024, reaching 2,373. Key trends include:

Manufactured Homes
856 programs now support the purchase of manufactured homes, a 6% increase from the previous quarter.

Program Spotlight: The City of Tucson/Pima County HOME Down Payment Assistance Program offers buyers of manufactured homes a minimum down payment assistance (DPA) of $1,000 and up to 20% of the purchase price. Buyers must have incomes at or below 80% of the HUD Area Median Income (AMI). Home prices are capped at $302,100 for existing homes and $358,835 for new homes.

Multifamily Properties
707 programs allow for the purchase of multifamily properties, a 3% increase from the previous quarter.

Program Spotlight: The NeighborWorks Southern Colorado Down Payment Assistance Program offers up to 10% of the purchase price for buyers of multifamily properties. This can be combined with other NWSOCO DPA programs and is open to buyers with incomes at or below 100% of the HUD AMI.

Below Market Rate (BMR)/Resale Programs
77 programs are BMR/resale DPA programs, up 7% from the last quarter and 108% from Q1 2023.

Program Spotlight: The City of Novato Below Market Rate (BMR) Homeownership Program is available to buyers with incomes up to 120% of the HUD AMI. The home is sold below market rate with a lien covering the difference.

Incentive Programs
192 programs target specific homebuyer segments by profession or ethnicity. There was a 13% increase in programs for Native American home buyers compared to last year.

Veterans: 189 programs targeted veterans, a slight decrease from Q1 2023.

California Leads in Homebuyer Assistance Programs
California has the most homebuyer assistance programs available, offering a variety of loans and grants to help make homeownership more accessible. The California Housing Finance Agency (CalHFA) provides many programs, including the MyHome Assistance Program, which offers loans to help with down payments and closing costs. Other programs like the CalHFA USDA loan, CalHFA VA loan, and the California Dream For All Shared Appreciation Loan provide substantial assistance to first-time homebuyers (The Mortgage Reports) (CalHFA) (Sofi) (CAR) (MoneyGeek.com).

Breakdown of New Programs
Since Q4 2023, the new homebuyer assistance programs added include:

17 new grant programs (largest quarterly growth)
20 new combined assistance programs
5 new deed restriction programs

Overall Program Breakdown
The breakdown of the 2,373 homebuyer assistance programs is as follows:

82% currently funded
9% inactive
4% on a funding waitlist
6% temporarily suspended
74% for down payment or closing cost assistance
9% first mortgages
3% Mortgage Credit Certificates (MCCs)
13% other program types
60% for first-time buyers, 40% for repeat buyers

Conclusion
The Q1 2024 Homeownership Program Index (HPI) Report from the Resource Center shows a positive trend in the availability and variety of homebuyer assistance programs. With significant increases in the number of programs, especially those supporting affordable housing and multifamily properties, more potential homeowners have access to the help they need. California, in particular, offers the most extensive range of programs, making it a leader in homebuyer support. The growth in Below Market Rate and other incentive programs further shows the ongoing efforts to make homeownership more achievable for a wider range of people. As these programs continue to grow and evolve, they offer crucial support to those looking to buy homes, helping to create a more inclusive and accessible housing market.

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