Helping buyers? Learn about down payment assistance

Source: InMan
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Lack of a down payment is the main obstacle stopping first-time buyers from purchasing a home. As an agent, here’s how you can put down payment assistance programs to work in your business — and help buyers fulfill their dream of becoming homeowners

Did you know that you can help your buyers obtain an average of $13,000 in down payment assistance? Did you know that 84 percent of the properties in the U.S. qualify for these programs, and that there are 2,400 programs available nationally? There’s no better time than now to help your buyers make their dream of homeownership come true.

Lack of a down payment is the No. 1 obstacle blocking first-time buyers from purchasing a home, but it can be equally challenging to existing homeowners who may be forced to sell due to COVID-19 or some other circumstance. Even more importantly, it’s a powerful tool the entire industry can use to turn the tide on the disturbingly low rate of African-American homeownership of only 40.6 percent.

On this week’s show, Rob Chrane, the founder and CEO of (DPR) and the 2011 winner of Inman Innovator of the Year, explains how you can put down payment assistance programs to work in your business. Here are some highlights from this in-depth interview that we strongly recommend you watch.

What is down payment assistance? 

According to Chrane, down payment assistance is “money to help homebuyers get into a home,” by helping them accumulate their down payment and closing costs. These programs, as Chrane mentioned, are administered by federal, state and local housing finance agencies, nonprofits and employers.

What blocks buyers from using down payment assistance?

First and foremost, many consumers believe that they must have a 20 percent down payment to purchase a home. They’re unaware that FHA and other lenders have programs with down payments as low as 3.5 percent. Moreover, only a few agents and brokers know that these programs can be coupled with down payment assistance.

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