Seventy percent of U.S. adults don’t know down-payment assistance is available
Seventy percent of U.S. adults are unaware of down-payment assistance programs available for middle-income homebuyers in their community, according to findings from the second annual America at Home survey commissioned by NeighborWorks America, a national nonprofit community development corporation based in Washington, DC.
“Down-payment assistance programs make home purchasing more accessible for first-time buyers,” said Marietta Rodriguez, vice president of Homeownership Programs and Lending at NeighborWorks America. “In addition, because many down-payment assistance programs require home-buyer education, these purchasers tend to be more successful in the long term. Research has shown pre-purchase counseling helps reduce mortgage default and equips homeowners with the information they need to budget for other expenses and maintain their property.”
There are hundreds of millions of dollars available for down-payment assistance. NeighborWorks organizations provided 6,000 people with more than $100 million in such assistance last year, and expect to make even more available this year.
NeighborWorks America charter member NeighborWorks® Dakota Home Resources provides resources to Western South Dakota Residents to help families and individuals achieve, preserve, and sustain the benefits of homeownership. To date NeighborWorks Dakota Home Resources has provided 676 families with down payment closing cost assistance; and has provided homebuyer education to 1600 first time homebuyers.
In October of 2014, NeighborWorks Dakota Home Resources updated their loan programs to better serve current and future homeowners. “We increased our Down Payment & Closing Cost loan limit to allow clients to borrow up to $10,000; this increase will allow borrowers to lower their monthly payment and avoid the high cost of mortgage insurance when paired with conventional loan products.” NeighborWorks Lending Director Mike Walker stated.
In addition to increasing the lending limits NeighborWorks Dakota Home Resources rolled out a new program to help preserve the existing stock homes in our communities. The “Rehab for Resale” loan allows the homeowner to use the equity in the home at a low interest rate and complete the necessary repairs required for qualified financing.
NeighborWorks Dakota Home Resources and other charter organizations play a critical role in helping people find resources like down payment assistance and homebuyer education. For more information about NeighborWorks Dakota Home Resources please contact Stephany at 605-923-6007 or visit us www.nwdhr.org.
For the full findings of the America at Home survey commissioned by NeighborWorks America, go to NeighborWorks.org/HousingSurvey.
About NeighborWorks® Dakota Home Resources: NeighborWorks® Dakota Home Resources is a private nonprofit organization that has been assisting in providing decent, safe and affordable housing and revitalizing neighborhoods for twenty years. NeighborWorks® has helped more than 1,000 families realize their dream of homeownership.