Even as affordability pressures persist, program growth is giving lenders new tools to qualify more buyers and help more households achieve homeownership
ATLANTA, Ga., Oct. 21, 2025 (SEND2PRESS NEWSWIRE) — Down Payment Resource (DPR), the housing industry authority on homebuyer assistance program data and solutions, today released its Q3 2025 Homeownership Program Index (HPI) report. The report identifies 70 new programs launched in Q3, bringing the total number of available programs nationwide to a record 2,624. Additionally, 20 new program providers were added to DPR’s database in Q3, bringing its provider total to 1,360.
Image caption: Down Payment Resource Reports a New Record of 2,624 Homebuyer Assistance Programs Nationwide in Q3 2025.
Down payment assistance (DPA) can be used by lenders to lower a homebuyer’s loan-to-value (LTV) ratio by an average of 6%, helping them qualify more of their mortgage-ready buyers. In addition to down payments, many DPA programs can help with closing costs, prepaid expenses, buying down the mortgage interest rate and lessening mortgage insurance expenses. In some cases, buyers can combine multiple programs for even greater savings.
This assistance is vital as the median home price in the U.S. increased to $375,000 in Q3 2025, from $369,000 in Q2. Homebuyers finally got a break in Q3: mortgage rates eased, with the average 30-year fixed rate dipping from 6.75% in mid-July to 6.26% by mid-September.
“With home prices continuing to rise and mortgage rates still hovering near 6.5%, lenders know how challenging it can be to qualify today’s homebuyers. The good news is that there are now more tools than ever to help,” said Rob Chrane, founder and CEO of DPR. “In Q3 alone, 70 new homebuyer assistance programs were introduced. These resources — available in every U.S. county, with more than 2,000 counties offering 10 or more programs — are helping lenders reduce LTV ratios to qualify more mortgage-ready buyers and close more loans, even in a tight market.”
KEY Q3 2025 HPI REPORT FINDINGS:
An examination of the existing 2,624 homebuyer assistance programs on October 1, 2025, resulted in the following key findings:
- 70 homebuyer assistance programs were added in Q3 2025, a 3% increase from Q2 2025. 996 programs (38%) are available to repeat buyers and 1,628 (62%) support first-time homebuyers. It’s also essential to note that military homebuyers can often qualify for first-time buyer programs, even if they have previously purchased a residence. 273 programs (10%) do not have income restrictions, increasing the number of buyers who might qualify for assistance. 32 programs support first-generation homebuyers, representing a 3% increase over the last quarter.
- Of the total programs, 2,110 (80%) can be used to purchase new construction homes. These programs typically help cover a portion of the buyer’s down payment and/or closing costs, similar to assistance for resale properties.
- The number of programs supporting manufactured housing grew 5%, from 1,006 in Q2 2025 to 1,052 in Q3 2025. Recent estimates suggest that manufactured homes remain significantly less expensive per square foot than site-built homes. According to the Manufactured Housing Institute, new manufactured homes average approximately $85 per square foot, compared to $164 per square foot for traditional site-built homes.
- 909 programs support the purchase of multi-family housing, a 6% increase from the previous quarter. Of these, a growing number of programs support purchasing three-unit homes (606) and four-unit homes (578). Investing in multifamily properties can generate cash flow and offer buyers tax advantages.
- The majority of programs, 1,464 (56%), are second-mortgage programs, up 1% from Q2. 272 (10%) are combined assistance programs, which typically blend a first mortgage (usually below market rate) and down payment assistance in the form of a second mortgage, a grant, or a combination of the two. 246 programs (9%) were first-mortgage programs.
- 53% of DPAs (1,024 programs) offer partial or full forgiveness over time — a 3% increase from the previous quarter — provided the homeowner meets specific requirements, such as maintaining the property as their primary residence.
- 1,023 programs (39%) were offered through municipalities or local program providers, a 1% increase over the previous quarter. 564 programs are sponsored by nonprofits, a 3% quarterly increase. State housing authorities (HFAs) accounted for 18% of programs (477), 3% higher than the previous quarter.
- 203 programs offer special incentives based on the buyer’s occupation or other characteristics. Of these, 71 (35%) support educators — up 4% from the previous quarter — 52 (26%) assist Native American homebuyers, 50 (25%) serve protectors and police, 49 (24%) are available to military Veterans (up 9% from Q2), and 38 (19%) support active-duty military (also up 9% from Q2).
- There are programs in all 50 states; 348 in California alone, followed by Florida (198) and Texas (126). 125 of the programs being tracked by DPR are considered “multi-state programs.”
A more detailed analysis of the Q3 2025 HPI findings, including infographics and examples of the programs described in this release, can be found on DPR’s website at: https://downpaymentresource.com/professional-resource/down-payment-assistance-hits-record-high-in-q3-2025-with-2624-programs-and-counting/
For a complete list of homebuyer assistance programs by state, visit: https://downpaymentresource.com/wp-content/uploads/2025/10/HPI-state-by-state-data.Q32025.pdf.
Members of the media are encouraged to contact DPR for data specific to their reporting needs.
METHODOLOGY:
Published quarterly, DPR’s HPI surveys the funding status, eligibility rules and benefits of U.S. homebuyer assistance programs administered by state and local housing finance agencies, municipalities, nonprofits and other housing organizations. DPR communicates with over 1,300 program providers throughout the year to track and update the country’s wide range of homeownership programs, including down payment and closing cost programs, Mortgage Credit Certificates (MCCs) and affordable first mortgages, in the DOWN PAYMENT RESOURCE® database.
About Down Payment Resource:
Down Payment Resource (DPR) is the housing industry authority on homebuyer assistance program data and solutions. With a database that tracks more than 2,600 programs and toolsets for mortgage lenders, multiple listing services (MLSs) and API users, DPR helps housing professionals connect homebuyers with the assistance they need. DPR frequently lends its expertise to nonprofits, housing finance agencies, policymakers, government-sponsored enterprises and trade organizations seeking to improve housing affordability. Its technology is used by seven of the top 25 mortgage lenders, the three largest real estate listing websites and 600,000 real estate agents. For more information, visit https://downpaymentresource.com/.
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NEWS SOURCE: Down Payment Resource
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