RealtyTrac recently reported that buyers who use down payment assistance programs could be saving an average of $17,766 over the life of the loan nationwide. These down payment assistance programs result in even greater savings in areas of California including: Placer County, at $78,539, San Francisco County, at $77,411, Orange County, at $74,268 and Shasta County, at $70,806.
However, first time home buyers may not be able to take advantage of these programs due to low inventory and high prices.
The report analyzed the impact of down payment assistance programs on the cost of buying a home, including the down payment and monthly house payments for a median-priced home in 513 counties nationwide. It was released at the National Association of Real Estate Editors 50th Annual Journalism Conference in New Orleans.
“Homeownership programs not only help buyers overcome the initial cost of purchasing a home, but also produce a compounding positive impact on the homeowner’s saving and wealth-building capability,” Down Payment Resource CEO Rob Chrane said.
“In fact, these programs are now the last frontier in the fight to preserve homeownership affordability,” Chrane said. “Rates are never going to be substantially lower, and home prices continue to trend higher.”
The savings comes from an average savings of $5,965 on the down payment, and about $11,801 on monthly house payments throughout the life of the loan.
“Saving for a down payment can be difficult for prospective first-time homebuyers given the absence of substantial wage growth in recent years combined with the burden of student loan debt many are struggling under,” RealtyTrac Senior Vice President Daren Blomquist.
“Even just a 3% down payment requires 14% of annual wages on average across the 513 counties we analyzed, and in 67 counties a 3 percent down payment requires more than one-fifth of annual wages,” Blomquist said.
Back in 2015, a joint analysis by RealtyTrac and Down Payment Resource showed that 87% of homes and condos would qualify for down payment assistance.
Have you seen clients take advantage of these programs recently? We’d love to hear from you!
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