43 New Assistance Programs Were Added During The First Quarter Of 2025, Expanding Support For More Homebuyers 

Down Payment Resource (DPR), an authority on homebuyer assistance program data and solutions, released its Q1 2025 Homeownership Program Index (HPI) report. The report saw the number of entities offering homebuyer assistance programs increase by 55 year-over-year (YoY). The number of programs increased by 43 during the first quarter, bringing the total number of available programs to 2,509.

Down payment assistance (DPA) can be used by lenders to lower a homebuyer’s loan-to-value (LTV) ratio by an average of 6%. The average benefit is $18,000.

“Rates are still high and prices keep climbing, but we’re seeing expanded program offerings, new providers and greater flexibility in how funds are used — not just for down payments but also to cover closing costs, lower the rate or meet other buyer needs,” said Rob Chrane, founder and CEO of DPR. “More programs now include manufactured and multi-family homes, opening new paths to affordability and steady income. For lenders, that means more ways to qualify buyers and close loans in a tough market.”

Key Q1 2025 HPI Report Findings

An examination of the existing 2,509 homebuyer assistance programs on April 4, 2025, resulted in the following key findings:

• 43 homebuyer assistance programs were added in Q1 2025, a 2% increase from Q4 2024. 952 programs (38%) are available to repeat buyers. 240 programs (10%) do not have income restrictions, increasing the number of buyers who might qualify for assistance. 29 programs support first-generation homebuyers, an increase of 16% over the last quarter.
• ”Other homebuyer assistance” programs increased 35% from the previous quarter, below-market-rate (BMR)/resale-restricted programs increased 18% and grant programs grew 7%. BMR/resale-restricted programs offer housing at prices lower than the open market, with restrictions on resale to ensure affordability for future buyers, typically low-to moderate-income households. 
• 80% of DPAs in Q1 were deferred payment programs, a 3% increase from the previous quarter. With a deferred payment loan, borrowers don’t make monthly payments, and the balance is typically due when they sell or refinance or the loan matures. Many of these loans are also forgivable. 53% of DPAs in Q1 offered partial or full forgiveness over time, as long as the homeowner meets certain requirements, such as maintaining primary residency.
• 990 programs (39%) were offered through local housing finance agencies (HFAs), virtually unchanged from the previous quarter. Nonprofits accounted for 21%, a 2% increase over the previous quarter. State FHAs represented 18%, a slight drop from the previous quarter.
• The number of programs supporting manufactured housing grew 6%, from 914 in Q4 2024 to 971 in Q1 2025. Manufactured homes are considered to be an affordable housing supply since they are significantly cheaper to purchase than site-built homes, with average costs per square foot around $87 versus $166 according to the Manufactured Housing Institute.
• 833 programs supported the purchase of multi-family housing, a 3% increase from the previous quarter. Of these, a growing number of programs support purchasing three-unit homes (562) and four-unit homes (536). Investing in multifamily properties can generate cash flow and potentially offer tax advantages to buyers. 
• 20 programs offered special funding to surviving military spouses, an 18% increase from the previous quarter, while energy efficiency programs grew by 17%. Other incentive programs included 69 for educators, 56 for protectors (jobs focused on safeguarding people, property, or information), 50 to assist military veterans, and 50 for Native Americans.