A report released by RealtyTrac and Down Payment Resource shows the effect that down payment assistance programs have on the cost of buying a median-priced home, both in terms of the initial down payment at the time of purchase and the monthly payments over the life of the loan. Analyzing 513 counties across the nation, RealtyTrac and Down Payment Resource found that homebuyers who used down payment assistance programs saved an average of $17,766 or 41% of their annual wages on a down payment. When they examined the impact on homebuyers’ monthly payments, they found that the average savings amounted to $5,965 for the life the loan.
Homebuyers in Ada and Canyon County who used down payment assistance programs also saved thousands in down payment costs and monthly house payments. In Ada County, the total down payment assistance savings of annual income was 74% with a total life-of-loan savings of $32,380. Canyon County’s total down payment assistance savings of annual income was 60% with a total life-of-loan savings of $20,096.
Down Payment Resource CEO Rob Chrane stated, “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. In fact, these programs are now the last frontier in the fight to preserve homeownership affordability. Rates are never going to be substantially lower, and home prices continue to trend higher.” Read the full report at http://bit.ly/1YhZs7e.