With first-time homebuyer percentages down, some lenders and Realtor® Associations are focusing on advertising efforts to educate homebuyers about the opportunities through down payment assistance. Securing a down payment remains the number one challenge for homebuyers, preventing many from exploring the possibility of homeownership.

The Greater Albuquerque Association of REALTORS® (GAAR) recently launched a new homebuyer ad campaign highlighting its partnership with Down Payment Resource. The campaign features local bus and radio ads that drive homebuyers to a new webpage to learn more about how Down Payment Resource and the GAAR home search page can direct buyers to down payment savings.

Take a minute to listen to the engaging radio ad, currently running on local stations.

The campaign aims to build curiosity among renters and drive awareness about the programs available in their market.

Aloha! We’re excited to announce that Down Payment Resource (DPR) will soon be available in Hawaii through Honolulu-based HiCentral MLS. DPR will be integrated into HiCentral MLS’s property listing data informing Realtors and eligible buyers about a wide variety of programs that can help save on down payments and closing costs.

In high cost markets, it is especially important for prospective buyers to understand all their home financing options, including homebuyer programs and low-cost mortgages. There are many programs available in every market across the country, often tailored for the community’s needs.

Once DPR is implemented, HiCentral MLS’s down payment assistance eligible listings will be flagged with a special icon. The organization’s 5,300 members will be able to search and suggest properties to their clients, find available assistance programs, as well as integrate DPR into their existing website through the use of Internet Data Exchange (IDX).

Homebuyers will also be able to find down payment assistance eligible properties when searching via www.hicentral.com.  Approximately 72 percent of HiCentral MLS’s residential listings may be eligible for one or more down payment assistance programs. You can learn more about the partnership in this press release.

DPR is now available through 17 Multiple Listings Services and Realtor Associations, serving more than 300,000 REALTORS® nationwide. Find out more about how DPR works for MLSs and Realtors.

Some rural communities were set to lose their eligibility for the U.S. Department of Agriculture (USDA) rural housing programs due to a new Census-data-based calculation. Recently the USDA provided new guidance that will allow rural communities to retain their eligibility through 2020 and increases the population limit to 35,000 from 25,000.

In addition, any area eligible for rural housing programs as of September 30, 2013 will retain to retain that eligibility through October 1, 2014.

The USDA definition applies to all Rural Development single-family and multifamily housing loan and grant programs, including the Direct and Guaranteed programs you’ll find in Down Payment Resource.  Program and property eligibility will be updated in Down Payment Resource.

This is a big win for small and rural communities. The change allows for the expansion of rural housing financing, which can often be paired up with homebuyer assistance.

For more detail on USDA’s guidance, visit NCSHA’s blog.

We are excited to announce the addition of two new members to our leadership team—Richard Lutch as Chief Financial Officer and Perry Flinn as Chief Technology Officer.

With more than 20 years experience in all aspects of financial management, Richard Lutch joins DPR as an independent consultant serving as Chief Financial Officer. He is responsible for the organization’s financial operations. Lutch previously served as the Director of Finance for the Atlanta Beltline, Inc. and as the Senior Vice President of Finance and Strategic Alliances for HomeBanc Mortgage Corporation. Lutch also served on the DPR advisory council since 2007.

As Chief Technology Officer, Perry Flinn is responsible for the company’s technical integrations and special development projects. Flinn brings more than 30 years experience in technology architecture, design/development, consulting as well as experience in the financial services industry to his role. Most recently, he managed an independent IT consulting practice and served as the CTO for VoiceQuilt, LLC. Flinn also served on the DPR advisory council since 2009.

“Richard and Perry have been instrumental in guiding the company while serving on our advisory council and I’m pleased to expand their roles,” said Rob Chrane, president of Down Payment Resource. “As the market adjusts to new mortgage regulations, real estate professionals are looking for valuable ways to show homebuyers their options. We’re excited to see the growth and interest in using DPR to expedite the process of finding homebuyer programs and low-cost mortgages.”

Read more in our press release.

It’s open house season, but many potential buyers are sidelined due to a lack of a down payment. Draw more attention to your listings by advertising that down payment assistance may be available.

If Down Payment Resource (DPR) is available in your market, you can order personalized DPR yard signs and sign riders. Use our simple order form to get your signs.

Please note that DPR doesn’t profit when you order a sign. This is simply a courtesy so you can easily order your materials.

Are you already using a yard sign on your listing? Share a photo of your listing and sign with us!

Check out two recent personal finance articles that highlight how buyers can find help for their down payment. We are pleased to be included in both stories and encouraged that more outlets are taking notice of the critical issue of securing a down payment.

From Bankrate.com: Down Payment Assistance is Still Available

Often, potential buyers have what it takes to qualify for a mortgage but haven’t managed to save enough for a down payment or simply don’t want to spend all of their savings on a down payment, Chrane says. Meanwhile, money from the many types of down payment assistance programs, available through state and local housing agencies, goes unused because buyers think they don’t qualify for help.

“About 90% to 95% of buyers don’t realize they might be eligible for down payment assistance,” says Rob Chrane, president of Down Payment Resource, an Atlanta-based company that helps connect customers with down payment assistance. “It’s not really widely known.”

The Greater Lansing Association of REALTORS® (GLAR)—serving Mid Michigan—recently held a media event with local legislators to kick off a Down Payment Resource (DPR) open house weekend highlighting some of the area’s eligible homes. It helped raise awareness among renters and other buyers about available programs, including Michigan State Housing Development Authority’s MI Next Home, a new program to provide up to $7,500 to families with little savings toward the purchase of their next home.

GLAR also refreshed their webpage to feature DPR as a key offering for prospective homebuyers, encouraging them to ask their Realtor about DPR.

Check out the excellent news coverage that resulted from the event.

“I think it’s going to increase the number of buyers into our market just because they are now able to see that they can afford something,” said Terry Frewen, the President of the Greater Lansing Association of Realtors.

“This is just going to help [people buy] maybe a little bit more home or maybe get into that perfect home that was a little out of their reach before,” said Realtor Chad Dutcher, who’s excited for what this will do for the industry.

 While some banks can conduct such searches for home buyers, the association’s Down Payment Assistance program gives consumers answers before selecting a lender, said Terry Frewen, president of the Greater Lansing Association of Realtors.

State Rep. Andy Schor, D-Lansing, said consumers might be unaware of many federal down payment assistance programs that are available.

“This is going to be a game-changer for the Lansing region,” Schor said.

We’re excited to announce several new Down Payment Resource enhancements for our MLS customers and their Realtor members, including an updated look and feel with mobile-friendly responsive design that adapts to any device or screen size.

The redesigned search form highlights the number of matched programs as the search is completed, making the experience fun for prospective homebuyers.

And, here’s a peek inside the new MLS home page, providing access to marketing resources, training videos, and more.

Watch this 45-second video to learn more about how the new DPR works for MLSs and Realtors. How many more buyers could you help with DPR?

Economists are now recognizing the issue of the lack of first-time homebuyers. In fact, the homeownership rate for adults under age 35 is 7% less today than it was 10 years ago.

Most buyers don’t know they can use down payment assistance to maximize their down payment. This infographic illustrates how much buyers could save on their down payment when using a homebuyer program.

Down Payment Resource Launches Homeownership Program Index

 Nationally 90% of homebuyer programs are funded

HOUSTON, TX, June 12, 2014 – At the National Association of Real Estate Editors Conference, Down Payment Resource (DPR) launched its new Homeownership Program Index. The Index measures homeownership programs available across the country and the percentage of funded programs. DPR, the nation’s only search engine for homebuyer programs, aggregates the benefits and eligibility requirements for programs including down payment assistance, grants, affordable first mortgages, and tax credits.

The June Homeownership Program Index analyzed 1,654 programs available nationwide. Across Down Payment Resource’s databank, nationally, 90 percent of programs are funded with the greatest number of programs available in the South.

June 2014 Homeownership Program Index

The Homeownership Program Index highlights the availability of valuable homeownership programs administered by state and local Housing Finance Agencies (HFAs), nonprofits, and other housing organizations. Programs are funded in a variety of ways, including mortgage revenue bonds and mortgage backed securities.

Many borrowers today have the income and credit rating to qualify for a home, but don’t have the funds for the down payment. With today’s median existing-home price of $201,700, a 20 percent down payment would be more than $40,000, a challenge for first-time homebuyers managing stagnant wages and student loan debt. In fact, according to the National Association of REALTORS® (NAR) April Realtors Confidence Index, sales to first-time homebuyers decreased to 29 percent. Realtors report that tight underwriting standards and increases in FHA mortgage insurance costs are discouraging buyers.

According to DPR’s analysis, an average of 70 percent of for-sale homes could be eligible for one or more homeownership programs (subject to the buyer’s eligibility). In addition, HFAs administer low down payment programs and, in some cases, programs that do not require mortgage insurance.

“Homeownership programs can be especially valuable for homebuyers whose qualifications are outside the Qualified Mortgage (QM) guidelines. They will find their most affordable options through HFAs and their participating lenders,” said Rob Chrane, President and CEO of Down Payment Resource.

Programs include:

• Home loans: competitive interest rates, below-market interest rates, 100 percent financing
• Down payment and closing cost assistance
• Grants for down payments, which do not have to be repaid
• Mortgage Credit Certificates (MCCs): up to $2,000 in annual tax credits that are good for the life of the loan
• Rehab loans that allow buyers to renovate certain properties
• And more

“While some housing experts advocate for a 20 percent down payment, it may not be possible or advisable for many prospective buyers. Every situation is different and it’s important that buyers investigate all their home financing options,” said Chrane. “When using a homeownership program, buyers retain savings for moving expenses as well as for emergencies and retirement. Most programs also require homeownership counseling, a key predictor of successful homeownership.”

About Down Payment Resource

Down Payment Resource (DPR) was developed by Atlanta-based Workforce Resource®, a web-based software company with a mission to connect people with hard-to-find financial resources. DPR helps potential homebuyers become qualified buyers by connecting them to down payment assistance funds they may not have otherwise known existed. DPR, winner of the 2011 Inman News Innovator “Most Innovative New Technology” award, is licensed to Multiple Listing Services, Realtor Associations, financial institutions and housing counselors across the country. For more information, please visit www.DownPaymentResource.com. @dwmpmtresource

Download a PDF version of this release.

Index Methodology

The Homeownership Program Index was created using state and local programs currently available in Down Payment Resource’s databank. The index tracks the total number of programs, number of funded programs, number of program administrators, and percentage of funded programs.

In addition to these programs, DPR also monitors USDA Single Family Guaranteed and Direct programs, the HUD Good Neighbor Next Door program and the PenFed Foundation Dream Makers Grant which are all available in eligible areas and to eligible buyers nationwide.

Through DPR’s ongoing program research, more specialized and localized programs will be included in the index. View data by state in a detailed chart.

Regional classifications:

• Northeast (ME, NH, VT, MA, RI, CT, NY, PA, NJ)
• South (DE, WV, MD, DC, VA, NC, SC, GA, FL, KY, TN, MS, AL, OK, AR, TX, LA)
• Midwest (WI, MI, IL, IN, OH, ND, SD, MN, NE, IA, KS, MO)
• West (MT, ID, WY, NV, UT, CO, AZ, NM, WA, OR, CA, AK, HI)

#  #  #

It’s been a busy Homeownership Month here at Down Payment Resource. Three new Multiple Listing Services launched Down Payment Resource to their membership in June.

Corpus Christi, Texas-based Coastal Bend MLS (83 percent of listings eligible for one or more homeownership programs).

South Dakota-based Realtor Association of the Sioux Empire (75 percent of listings eligible).

Intermountain MLS (Eastern Oregon and Southern Idaho, with 87 percent of listings eligible).

DPR is now licensed to 19 Multiple Listing Services and Realtor Associations across the country, providing access to detailed program information to more than 320,000 REALTORS. It allows Realtor members to search and suggest properties to their clients, find available assistance programs, as well as integrate DPR into their existing property search website through the use of Internet Data Exchange (IDX).

Intermountain MLS also launched DPR on their public website — intermountainmls.com. Local media highlighted how the new property listing feature will link more buyers to housing finance help.

From the Idaho Statesman:

“We hope more potential homebuyers will come to our site and see what opportunities may be available for their situation,” said Greg Manship, CEO of Intermountain MLS.

From the Idaho Business Review:

“The first place consumers search for homes is online, and this provides both serious homebuyers and those who may be on the fence with more information or resources on the front end,” Intermountain MLS CEO Greg Manship said.

The State of the Nation’s Housing 2014 was released yesterday and millennials were the headline —the Harvard Research Center finds they are key to a stronger housing recovery. While the housing market is recovering, it’s doing so at a much slower rate than first thought, following the slow recovery path of the overall economy.

Why are millennials so important?

During the live webcast about the report, Chris Herbert, Research Director, Harvard Joint Center for Housing Studies, reminded us that young buyers have always been important—they add to housing demand and allow others to move up. However, they are also coming of age during the worst recession since the Depression, Herbert said. Key challenges for millennials are: rising interest rates, tight credit, student loan debt and stagnant incomes.

The homeownership rate realized a steady decline for the past nine years, but if you look at the age breakouts for the homeownership rate, the story is actually much worse. From 2004 to 2013, the slide in homeownership rates has been most dramatic among younger adults compared to other age groups: rates for 25–34 year olds were down nearly 8 percentage points and for 35–44 year olds some 9 percentage points. Herbert said factors contributing to homeownership drop among young buyers include:

• more wariness among buyers, eyes wide open since the crisis
• less confidence in increased home prices
• credit conditions are much tighter, making it harder to get in the market
• median incomes down for those in their 20s and 30s

From 2002 to 2012, the real median income for households aged 25–34 fell 11 percent, leaving their real incomes below those of same-aged households in 1972. Herbert asked, when incomes go up, the bigger question will be can they get a mortgage product that works?

Mike Calhoun, President, Center for Responsible Lending, highlighted that people are still very interested in owning and it’s good for the stability of communities and families. While foreclosure rates were horrific, for most families homeownership was still valuable. Homeownership also remains a primary way for people to steadily build wealth over their lifetime, Calhoun said.

Calhoun believes we have a much safer market for consumers today. The 30-year fixed rate has come back and provides stability. Even in the housing crisis, lower income buyers did very well if they got a 30 year mortgage. Subprime lending was the problem, not a specific income bracket.

State Housing Finance Agencies (HFAs) are often overlooked, but they are one of the success stories that needs to be told Calhoun said. State HFAs have continued to provide credit through all market conditions. Moreover, those buyers held onto their homes during the crisis. He noted that HFAs will continue to be very important for borrowers who need down payment assistance.

Follow the conversation on Twitter at #harvardhousingreport.

Issues facing today’s would-be first-time homebuyers were a key topic at the National Association of Real Estate Editors (NAREE) conference in Houston last month. Student loan debt, lack of inventory, tight credit, and saving for a down payment remain challenges for Millennial buyers. And, it’s stalling the housing market because new buyers start the supply chain for step up buyers.

During the conference, LoanDepot founder and CEO, Anthony Hsieh, said he believes we need to make the home buying process fun again for buyers.  He said he just doesn’t see curiosity among buyers about what they can afford and what’s available. The first-time homebuyer median age has increased from 34 to 36 as more people are waiting longer to make a decision about home buying. Today, the conversation around the dinner table is that mortgages are hard to get. Hsieh believes we need to make more loan products available to first-time homebuyers.

So, how do we change the dinner table conversation?

Tom O’Grady (ProTeck Valuation), Mary Lawler (Avenue CDC), and Rob Chrane (Down Payment Resource) speak on affordability at the NAREE conference.

Down Payment Resource president and CEO Rob Chrane participated on a panel moabout affordability in the era of rising home prices. Chrane noted that there are solutions available to first-time homebuyers, but they just aren’t well known. If more buyers knew about homeownership programs, including affordable first mortgages, down payment and closing cost assistance and grants, we could make a significant dent in the affordability problem for new buyers. Buyers can get loans without 20 percent down, allowing them to come to the table with some equity, Chrane said. Mary Lawler with Houston-based Avenue CDC, a Neighborworks affiliate, also discussed the importance of homebuyer education for successful long-term homeownership. Realtors and lenders can play a key role in educating buyers about housing finance help available.

>>>The Sarasota Herald Tribune covered the panel and highlighted how My Florida Regional MLS integrates DPR into its property listings.

The NAREE panel was moderated by Heather Perlberg with Bloomberg News.

In social media, there’s no better combination than personal stories and video. To that end, Northern Nevada Regional MLS launched a creative Down Payment Resource video contest in their market. Members share their DPR success stories in a video format for a chance to win free MLS services and gift cards, as well as additional publicity about their success. The campaign aims to engage more members on social media and encourage use of DPR.

Check out how NNRMLS highlighted the contest on their member log in page and through a custom video.

Real Estate Connect creates the two biggest real estate technology gatherings of the year. But, it’s much more than that.  As regular conference attendees, we know it’s about new ideas, debates, consumer issues, and connecting with old and new friends. All of which have enhanced the trajectory of our entrepreneurial company.

Here are the top three reasons we wouldn’t miss it this year:

Startup Alley: Every company started somewhere! We appreciate the opportunity to talk to new startups who are solving problems, improving customer experiences and developing new technologies. In 2009, we were one of those start ups—one of 16 in the first ever Startup Alley. The event inspired a strategic decision to integrate Down Payment Resource into MLS property data, which became our core service. (Check out our list of partners today!)

2014 Innovator Awards: We were thrilled to be named the 2011 Most Innovative Technology. We wouldn’t miss this year’s presentation to get to know the up and coming people, businesses and technologies that are improving the way we do real estate.

User experience sessions: We look forward to taking in sessions dedicated to leveraging technology to improve the customer experience. What can we do to attract more homebuyers? How can we make home buying fun again? How do we raise awareness about overlooked resources like homeownership programs? We plan to check out the “Sweating the Details to Create Seamless Experiences” with @getyourpro and “Creating Meaningful User Experiences” with a full speaker line up—@amfeng, @w3edge, @micheleserro, @lauramonroe.

I’ll be live tweeting at the conference at @DwnPmtResource—follow the conversation with the hashtag #ICSF.

Contact me at rchrane@downpaymentresource.com to connect in person at Real Estate Connect.

– Rob Chrane, President and CEO, Down Payment Resource

Data shows that first-time homebuyers aren’t participating in the housing recovery. Plus, new research shows that buyers greatly overestimate the size of a down payment they need to finance a home. Buyers are often holding onto myths about financing, keeping them sidelined much longer.

What if these prospective buyers knew there were other options? Realtors and brokerages whose Multiple Listing Service licenses Down Payment Resource (DPR), can add property-specific information about down payment assistance programs to their IDX website. It allows buyers to discover affordable home financing options and provides a warm lead to the agent.

In fact, an average of 5% of consumers who click the DPR icon on eligible listings from real estate search sites will submit their contact info to the site owner asking for more help. Take advantage of this 5% clicks-to-leads rate when you use the free DPR IDX feature.

To learn more, watch our on demand webinar “Is your website a conversation starter?” and view our slides. You’ll get tips on today’s opportunities with new buyers, how to make your website more engaging with DPR and how to manage your DPR leads.

Questions about setting up DPR on your IDX site? Contact us at info@downpaymentresource.com.

Josh Morris is a public servant first. Prior to becoming a Realtor he was a firefighter, but after an injury prevented his continued service he sought a new career. Today, he keeps public service front and center as a Realtor serving first-time homebuyers in the Sarasota, Florida market.

Morris pays it forward—literally—by paying a portion of closing costs for clients who are veterans, firefighters, police officers, teachers and other types of civil service providers.

“My passion is first-time homebuyers. It’s what got me into real estate. After a negative experience with an agent who didn’t want to help me as a new buyer, I decided to get my own real estate license,” said Morris. “The first house I bought and sold was my own.”

And, Morris went on to sell 19 homes in his first year. In just 18 months, he earned a Rising Star Award, became a member of the Florida Realtors Young Professional Network and participated in the 2014 Sarasota Association of Realtors Emerging Leaders program.

Morris says he finds it amazing that many Realtors avoid first-time homebuyers. “First-time buyers become buyers again and they provide referrals,” he said.

Morris also uses technology to help his first-time homebuyers find their best home financing options. He uses Down Payment Resource, available through his Multiple Listing Service, My Florida Regional MLS, to research available down payment assistance programs that can boost their buying power. He searches for down payment and closing cost assistance, grants, below-market interest rates, rehab loans and more.

“There are so many different programs out there and in such an active and hot market like Sarasota, these programs are helpful. Down Payment Resource makes my job easier. I can quickly find the latest on available programs,” said Morris.

Morris has closed a number of deals for buyers who may have been sidelined much longer without the help of a homeownership program—programs these buyers likely would not have found on their own.

Learn more about Josh Morris at www.SarasotaFirstTimeBuyer.com.

Want to learn how you can use Down Payment Resource to help more buyers? See how it works for Realtors in this 45-second video.

Yes! Buyers must first take time to investigate their options and apply, but it can pay off in big ways—immediate equity, buy sooner, retain savings for home improvements, tax benefits and more. We get reports from hundreds of Housing Finance Agencies and program administrators about the impact their homeownership programs make in the lives of families in their communities.

In 2013, the Texas State Affordable Housing Corporation (TSAHC) helped more than 2,000 families through their homebuyer programs, including:

• $11.4 million in grants,
• $255 million in home loans, and
• $24.3 million in Mortgage Credit Certificates!

Moreover, these buyers are successful. Since 2005, only 0.12% of buyers who used their homeownership programs have suffered a foreclosure. Read more about TSAHC’s success in their annual report.

Texas real estate professionals can learn about TSAHC’s various programs and how they can work for your buyers in our on demand webinar.

Join us August 20 or 21 for our Down Payment Assistance 101 webinar to understand the three most common types of homeownership programs and how to match your buyers and properties to these hard-to-find resources.

Just like our Realtor partners, we know all about being mobile and working anywhere. Check out some of the places our dedicated staff gets the job done. We hope you all have a wonderful Labor Day holiday…wherever you are!

Jeanne Giles is busy keeping our data fresh and managing the details of down payment assistance programs in her car on the way to the beach this summer. Don’t worry, her husband is driving!

Tracey Shell camps often with her family, but rarely without her laptop! Here she is cranking out some blog posts and marketing tools for our customers outside her family’s camper at the beach. This summer they took the camper to Disney World, Destin, FL and several Georgia state parks.

Engaging today’s buyers can be challenge. One way to start the conversation with a buyer is by sharing information about down payment assistance programs. Most homebuyers aren’t asking or looking for this information, but when you help them evaluate their options, you earn trust and may even help them buy sooner than they expected.

Minneapolis REALTORS® and NorthstarMLS members Brandon Hedges and Matt Barker share how providing details about available state and local homeownership programs opens up more opportunities for their business and their buyers.

“It gives us a jumping off point and a lot of people are able to start sooner than they thought.” – Brandon Hedges

New homebuyers Brian and Anna Englehart share how their Realtors and Down Payment Resource helped them see how they could get into a home and even have money left for some home improvements.

“…you really do need a Realtor who knows what they are doing and has time to really explore your options with you…” — Brian Englehart

Do you have a success story to share? Tell us at info@downpaymentresource.com.