Down payment assistance availability continues to grow in Q4 2025

Down Payment Resource (DPR) on Monday released its Q4 2025 Homeownership Program Index (HPI) report, identifying 2,619 down payment assistance (DPA) programs available nationwide. The count is five fewer compared to the third quarter but represents a 6% increase from Q4 2024, when 2,466 programs were available.

The year-over-year growth reflects continued expansion and refinement of DPA program options amid persistent housing affordability challenges across much of the country.

Down payment assistance programs continue to play a role in expanding access to homeownership, offering an average benefit of about $18,000. DPR said that the level of assistance reduces a homebuyer’s loan-to-value ratio by roughly 8.8%, improving borrower qualification and overall loan profiles.

Many programs also cover closing costs, prepaid expenses, mortgage rate buydowns and reductions in mortgage insurance costs. In some cases, eligible buyers can layer multiple programs.

“Affordability will remain the defining challenge for homebuyers in 2026, and down payment programs are one of the most practical tools lenders have to address it,” DPR founder and CEO Rob Chrane said in a statement.

“When DPA lowers loan-to-value ratios and helps cover upfront costs, it doesn’t just improve borrower eligibility; it improves loan quality. As prices remain elevated and rates fluctuate, lenders that proactively integrate DPA into their origination strategies are better positioned to turn qualified demand into sustainable homeownership.”

After evaluating the programs, DPR’s report found that each U.S. county has at least one down payment assistance program, and more than 2,000 counties have 10 or more.

California is the state with the most programs, with 353 programs from 223 providers. Florida follows with 196 programs from 128 providers, while Texas has 128 programs from 63 providers.

DPR reported that 1,599 programs (62%) have an average income limit above $100,000 across their footprint. Another 270 programs (10%) do not have income limits, a 15% increase from the previous year.

Across all programs, 1,639 (63%) are open to first-time buyers, an 8% increase from a year ago. Thirty-three programs support first-generation homebuyers, defined as buyers and their parents who have never owned a home, a 32% year-over-year increase.

The majority of programs (56%) are second-mortgage programs, up 4% annually, while 242 programs are first-mortgage programs, up 1%. More than 1,000 programs offer partial or full forgiveness over time, a 5% increase.

By home type, 1,014 programs cover manufactured home purchases, a slight drop from the previous quarter but up 14% from a year earlier. Buyers of multifamily housing (two to four units) are eligible for 923 programs, a 15% annual increase, and buyers of newly constructed homes are supported by 2,113 (81%) of the programs. DPR noted that the latter figure is a new data point with no historic year-over-year comparison.