The average down payment for a home in 2014 was 14 percent, or an average of $32,141, according to a new report by RealtyTrac. That’s a pretty steep figure for a first-time homebuyer. In real estate though, everything is local.

For example, the report features the top 10 markets for millennials based on the average down payment percentage being below the national average of 14 percent and an increase in the millennial population of 20 percent or more following the Great Recession.

Daren Blomquist, vice president at RealtyTrac, notes that “the markets where millennials are moving the most have above-average down payment percentages, which will make it tough for millennial renters to convert into first-time homebuyers in those markets.”

However, down payment programs could make a difference for entry level buyers in these markets. Low or no down payment loans hit their lowest level in a decade in 2014. While access to credit is improving, most buyers are still not aware of down payment programs.

“Even in higher cost markets, there are a wealth of homeownership programs available that could lower buyers’ down payment and closing costs,” said Rob Chrane, president and CEO of Down Payment Resource. “Programs in high cost markets may offer even greater down payment help, and income and home price limits are typically increased to fit the market. There’s a general lack of awareness among first time homebuyers about down payment programs which may be keeping more of them on the sidelines longer than necessary.”

Find the average down payment in your county in RealtyTrac’s full report and interactive map.

The post Where down payments are lowest appeared first on Down Payment Resource.

When Kara Welstead bought her first home, a loft in downtown Atlanta, she didn’t know her house warming would include a movie studio and Ben Affleck.

Welstead became a homeowner thanks to a down payment program provided by Invest Atlanta and a determined Realtor, Jeff Morabito with Keller Williams of Buckhead. Morabito got the details on the program and identified eligible properties for Welstead through Down Payment Resource, integrated into listing detail through FMLS.

“I love that with Down Payment Resource I can tell immediately if the property has down payment assistance. It’s also helpful that my clients can see right away that homebuyer programs are an option for their home financing,” said Morabito.

Just a few weeks after Welstead moved in, Hollywood (of the South) came calling. They used her loft and another across the hall to film a new movie, “The Accountant.” Affleck was even caught hamming it up with her dog, Chloe, in between takes.

Welstead also referred Morabito to a couple who is interested in using the new Atlanta BeltLine Affordable Housing Program in Atlanta. The program is helping them buy sooner than they would have otherwise…Morabito has them under contract now!

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Costigan to manage customer relationships for the growing company

Todd Costigan joins Down Payment Resource as Vice President of Customer Relations. Costigan is responsible for account management of the company’s real estate customers, including Multiple Listing Services (MLS) and Realtor Associations.

Costigan brings more than 25 years of real estate industry and financial services experience to his new role. His areas of expertise include account management, real estate technology and marketing. Previously, Costigan supported third party partner and MLS relations at CoreLogic, Inc. and at the National Association of REALTORS® he launched the Center for Realtor Technology—a technology research and advisory resource for MLS, brokers and agents.

“I’m pleased to add Todd to our growing team. His deep experience in real estate technology and understanding of MLSs will serve our customers well,” said Rob Chrane, CEO of Down Payment Resource. “As more entry level buyers begin their home buying and home financing education online, Down Payment Resource is poised to be a prime resource for new buyers and the real estate professionals who help them.”

Full press release.

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With thousands of diverse homebuyer programs available across the country, it can be overwhelming to understand how each one works.

One little-known homebuyer program is gaining in popularity. Mortgage Credit Certificates (MCCs) provide eligible homebuyers up to a $2,000 tax credit every year for the life of the loan. That’s a tax credit – cash in pocket for homeowners. Our latest Homeownership Program Index found that MCCs across the country increased from the previous quarter. MCCs have been around for years, but now they are on the rise and they can often be used in conjunction with a down payment program.

Basically, an MCC is a tax credit program that allows eligible homebuyers to claim a percentage of the mortgage interest they paid as a tax credit on their federal income tax return. Because it is a tax credit and not a tax deduction, mortgage lenders may use the estimated amount of the credit on a monthly basis to increase the buyer’s qualifying income. The percentage of mortgage credit allowed to be credited varies depending on the state or local housing agency that issues the certificates, but the credit itself is capped at a maximum of $2,000 per year by the IRS. Plus, the buyer may continue to receive an annual tax credit for as long as they live in the home and retain the original mortgage. That’s up to $2,000 per year, every year!

Example

MCC that offers a 30% credit on a $200,000 loan for 30 years with a rate of 4%.

Mortgage Interest Paid (1st Year): $8,000

x MCC Credit of 30% = Total Credit: $2,400

Because the total credit exceeds the IRS limit of $2000, the homebuyer would report a $2000 credit on their tax return. The entire remainder of mortgage interest paid is still claimed as a deduction.

The MCC program provided by Florida Housing Finance Corp. has tripled the number of homebuyers served in just two years. And, the demand is expected to continue. The program’s success was recently highlighted in the Sun Sentinel and HousingWire.

Use Down Payment Resource to search for your local programs. Many states, as well as local city and county providers, offer valuable MCCs, increasingly in conjunction with their down payment programs.

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More housing studies on millennials are out (cue our not surprised face). First-time homebuyer participation in home sales has been at record lows for several years. However, the usual suspects–student debt and the economy–don’t tell the entire story. So, what’s the deal?

Turns out a big theme is misinformation.

Consider this:

• A new Chase survey found that just one in four buyers correctly answered a series of questions about home buying — including how annual percentage rates work, down payments and lenders.
• Chase also said 60 percent incorrectly believe you need to put down at least 10 percent to obtain a home loan. They cited a lack of access to cash for a down payment as the biggest reason for renewing that rental agreement.
• A recent survey by ClosingCorp said that two out of every three Millennials who are planning to be homebuyers don’t know what closing costs are.

Young buyers are doing much more home research online, and they are looking for tech savvy agents and lenders who make the right connection with information on home financing basics, including down payment programs and homebuyer education. By simply addressing their greatest challenges upfront, the door to home buying conversations is opened.

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With affordable loan options on the rise today, it’s somewhat surprising that Wells Fargo’s annual homeownership survey (released June 16, 2015) found that 36 percent of consumers believe that a 20 percent down payment is always required. Even more troubling, a higher proportion of African-Americans and Hispanics hold this belief, at 58 percent and 55 percent respectively.

What’s the reality? 

RealtyTrac’s Home Purchase Down Payment Report (released June 3, 2015) showed the average down payment for single family homes, condos and townhomes purchased in the first quarter 2015 was 14.8 percent of the purchase price–a three-year low. The report also found that the average down payment for FHA purchase loans originated in the first quarter was 2.9 percent of the purchase price while the average down payment for conventional loans was 18.4 percent of the purchase price.

The share of low down payment loans — defined in the report as purchase loans with a loan-to-value ratio of 97 percent or higher, which would mean a down payment of 3 percent or lower — was 27 percent of all purchase loans in the first quarter, up from the prior quarter.

Our CEO, Rob Chrane was asked for a comment about the low down payment loans:

“While it’s good to see that the share of low down payment loans is gradually increasing, we’re concerned that many new buyers are unaware of options available to significantly reduce their down payment. Across the country, down payment program help averages almost $12,000. Even if a buyer has saved the minimum down payment, these additional benefits go a long way towards helping reduce out-of-pocket down payment and closing costs. Researching available low down payment loans and programs can make a material impact on a homebuyer’s finances for years to come. These programs can be paired with FHA or conventional first mortgages. Homebuyers can ask their Realtor and lender if they work with the state and local Housing Finance Agencies that provide these programs.”

There are many low down payment options available to today’s buyers, including 3 percent down payment loans and down payment and closing cost programs that can help buyers save even more. The Wells Fargo survey shows that consumers continue to overestimate what they need to qualify for a home loan and their awareness of different types of mortgages decreased from last year. We’ve got some educating to do on this front.

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June 25, 2015

Quarterly Homeownership Program Index increased to include three percent more programs; 87% have funds available to buyers

Link to release and key statistics.

Link to state-by-state data.

Key statistics:

• The report increased to 2,359 programs up three percent from the prior quarter.
• Programs from over 1,250 housing agencies and program providers are tracked.
• 19 programs are available nationwide.
• Approximately 87 percent of programs have funds available for homebuyers, down three percent from February.
• Mortgage Credit Certificates (MCC) increased 12 percent from October 2014.
• Many of these programs can be layered with each other and can often be used with most loan products, including VA and FHA.
• More than 14 percent of programs are special opportunities available exclusively for veterans, buyers with a disability and other professions or special circumstances.
• The index highlights the wide range of opportunities available for all types of buyers, not just for first-time homebuyers. 36 percent of the programs don’t include a first-time homebuyer requirement (down 1 percent from February).
• While all programs are available for single family homes, the index found that 17 percent of programs are also eligible for owner-occupied multifamily properties like duplexes, triplexes and quads (2-4 unit properties).

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What pops into your head when you hear the phrase affordable housing? Low-income households? Low-cost housing structures? Complicated homebuyer programs?

Unfortunately, the mental images these words conjure harm the real estate market. It’s ironic because affordable housing professionals and programs have helped many families get on a path toward homeownership and wealth creation that benefits entire communities.

But what if we flip those words and say housing affordability? Every homebuyer is looking for a home that’s affordable to them. That’s precisely the job of lenders — ensuring the home loan is affordable to the particular buyer. It makes homeownership sustainable.

My point here is that we should all care about housing affordability. Real estate professionals can be their buyers’ advocate by helping them find resources that make their purchase affordable to them.

Let’s rethink affordability. Instead of the traditional measures of sales price and interest rates, what about the entry cost? The down payment is still the biggest hurdle, and the challenge is growing.

I know. Who identifies themselves as potential beneficiaries of assistance? Our lexicon about affordable housing has made it difficult to have open discussions with buyers about their options.

Consider this: Recent studies by RealtyTrac and Wells Fargo show that many potential homebuyers believe 20 percent down is required.

*Infographic by Inman News

Buyers continue to do more research before engaging real estate professionals, yet knowledge about mortgage products is decreasing.

Unfortunately, the lack of discussion about what is affordable leads hundreds of thousands of eligible homebuyers to self-select themselves out of the marketplace.

Money left on the table for buyers and real estate professionals. Home sales could quickly increase by 2-3 percent simply by demystifying and destigmatizing these opportunities.

Homeownership programs come in all shapes and sizes and are designed to meet the housing needs of individual communities and buyers. There are ways to increase housing affordability for a much larger proportion of homebuyers — they include saving on a down payment and getting a lower interest rate and annual tax credit.

Our recent joint analysis with RealtyTrac on low down payment buyer affordability found that 90 percent of U.S. markets analyzed are still more affordable than historical averages.

When ranking markets, we took into consideration the availability of down payment programs. Across all 370 counties analyzed, the average amount of down payment help was $10,443, and that was on average 6.84 percent of the median home sales price in April. That helps overcome an enormous hurdle for many buyers.

Let’s tell millennials and boomerang buyers that about 87 percent of homes are eligible for homeownership programs. Maybe then, they will take the few minutes needed to find out if they are eligible and for how much.

It might increase their housing affordability and get them into a home sooner than they, or their agent, thought.

How do buyers find out? If they’re lucky, you know a lender who has invested the time and energy to be an expert in these programs. Maybe you even know which local housing counseling agencies offer help in your market.

All it takes to find these resources is a quick search. Look for your state housing finance agency then click on their list of participating lenders and approved counseling agencies. Or, go to eHomeAmerica, NeighborWorks orFramework. They will educate and incubate as needed until your client is ready, willing and able.

A little effort is all it takes to differentiate yourself in a hypercompetitive marketplace. You’ll build a career with rock-solid referrals, not to mention repeat sales and listings as your clients move up in the world.

The post The two most harmful words in real estate appeared first on Down Payment Resource.

We’re excited to highlight our new customers, growth into serving financial institutions and share our new brand and messaging.

MLS and Realtor Association news

Most recently, Down Payment Resource partnered with the Colorado Association of REALTORS® and MLS PIN. The largest Multiple Listing Service (MLS) in New England and one of the largest in the nation, MLS PIN launched the web-based tool to its more than 33,000 strong membership.

The company’s longstanding customers are also reaching new milestones. In June, Midwest Real Estate Data (MRED) reached one million page views through Down Payment Resource. That means, one million homebuyers and Realtors across Chicagoland have viewed down payment program results.

Expanding to serve financial institutions

Now that mortgage originations have transitioned to a predominantly purchase money market, lenders are turning to Down Payment Resource to better source and track programs that can help them tap into the next generation of homebuyers. Financial institutions license Down Payment Resource to educate their customers and help mortgage loan officers efficiently match eligible borrowers to available programs.

In March, Bank of America launched its new web-based tool, powered by Down Payment Resource, to guide consumers to down payment and closing cost assistance programs available in their region. Joining Down Payment Resource’s first lending partner, Mountain West Financial, the company also launched new partnerships with MB Financial Bank, South Pacific Financial Corporation and On Q Financial.

Fannie Mae sources Down Payment Resource’s research in its new 97% LTV Options Consumer Outreach Materials for its lender partners. The flyers and materials, available in both English and Spanish, make it easier for Fannie Mae’s lender partners to educate responsible homebuyers on the availability of low down payment mortgages and down payment help. In addition, Fannie Mae links to Down Payment Resource on its lender and consumer resource webpages.

New brand and messaging

Down Payment Resource’s new brand and messaging is designed to better communicate the opportunities available to today’s homebuyers.

Down Payment Resource also launched more intuitive icons and messages that display on eligible listings. Across participating MLS markets, the new icons and improved search have increased the average clicks-to-leads ratio from 7 percent to an impressive 10 percent.

In addition, homebuyers will find a new results message when they complete a search for programs. It highlights the number of programs and maximum benefit possible based on the information they entered.

Tell us what you think at info@downpaymentresource.com or Tweet to us at @dwnpmtresource.

Read the full press release.

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Delaying life events like getting married and having children is a real thing—and it matters in housing. While we’ve been waiting for the market to rebound, the Mortgage Bankers Association’s new housing demand report concludes that between 13.9 and 15.9 million additional households will be formed by 2024 and that surge will be driven by Hispanics Baby Boomers and, yes, Millennials. That would mean a growth rate of 1.6 million households per year which would make the next decade one of the strongest in housing in U.S. history, potentially rebounding the homeownership rate to 66 percent.

However, we know that even with household formation growth, potential buyers have their home buying challenges. Redfin’s latest home buying concerns report showed that making a down payment moved up on the list of top five concerns for buyers, replacing rising mortgage rates and buyer fatigue. Plus, Realtor.com chief economist Johnathan Smoke argues that access to credit really hasn’t improved for first-timers as much as we thought it would have by now.

According to a recent report by Moody’s, housing finance agencies (HFAs) are in a strong position to help millennial homebuyers as more look to buy a home. Of the 87.5 million millennials 24 to 34 years old, there are 15 million millennial households that do not own a home, “presenting a sizable untapped market for HFAs,” Moody’s said. The report states that HFAs target first-time homebuyers and can offer down payment and closing cost programs, providing a direct solution to bridge the down payment gap and make the purchase more affordable. Roughly 15 percent of millennial homebuyers financed 100 percent of the purchase price of their homes and Moody’s anticipates this number to grow as more millennials become homeowners. In fact, for 30 of the HFAs rated by Moody’s, more than 50 percent of their loans include down payment assistance.

Now is an excellent time for agents and lenders to partner with their state and local housing finance agencies to help new buyers get the financing they need to purchase a home. The demand is there, they just need solutions.

The post Tick Tock. Is 35 the new 25? appeared first on Down Payment Resource.

by Bernice Ross

This guest blog post comes from Bernice Ross with RealEstateCoach. Her two part series covers the real reasons millennials aren’t buying homes and how you can build your first-time homebuyer pipeline.

Part 1: The real reasons millennials aren’t buying homes

Many experts have argued that affordability, student loans or fear of being tied down are the primary reasons millennials are not buying homes. The real reasons, however, might be quite different from what the conventional wisdom suggests.

Although many people believe that millennials don’t want to be tied down with a home, a recent Redfin study indicates otherwise.

According to Nela Richardson, the chief economist at Redfin, “92 percent of millennials who don’t own a home say they plan to buy in the next four years.”

Richardson believes the big driver for homeownership is having children. In fact, the Redfin survey showed that 38 percent of U.S. millennials said they would, or have, put off a wedding or honeymoon to afford to buy a home. As Richardson says, “Mortgages before marriage.”

So what is keeping millennials from entering the housing market? Here are the factors at play:

Student loans: not the real issue

A study from TransUnion found that student loan impact on rates of millennial homeownership might be overblown.

“Despite an unprecedented rise in student loan balances over the past decade, a new TransUnion study found that student loan obligations do not inhibit younger consumers’ ability to access and repay other consumer credit categories such as auto loans and mortgage compared to peers without student loans.”

According to Charlie Wise, vice president of TransUnion’s Innovation Solutions Group and co-author of the study, “About 50 percent of people aged 18 to 29 have credit scores that qualify them as nonprime borrowers — a percentage that has been steady since 2005.

“What has changed is lending standards, which became stricter in the aftermath of the recession.”

A study from Credit Karma (based on a sample of over a million of their members), reported that consumers between the ages of 18 and 34 have an average credit score of 624, just four points above the minimum credit score of 620 to obtain a loan. Scores of 720-plus are required to obtain the best rates and terms.

Millennials don’t know how to start

A study from ZeroHedge.com concluded, “While we were certainly not surprised to learn that excessive student loan and credit card debt were responsible for keeping many of America’s youth from buying their first home, we were surprised to discover that for millennials in around one-third of U.S. states, the chief impediment is apparently ‘not knowing how to start.’”

The big disconnect

The Harvard Joint Center for Housing Studies recently estimated that about 50 percent of the 25- to 34-year-old renters in the top 85 metropolitan areas have the income and credit scores to qualify for a mortgage today. That’s approximately 5.5 million renter households!

So how come they’re not in the market? According to Freddie Mac’s Christina Boyle, the reason is that they are misinformed about the amount of the required down payment.

“Consumers persistently overestimate the size of a down payment they need in order to finance a home, and this lack of education is harming the housing market … Specifically, 38 percent of the 25- to 29-year-olds, and 42 percent of the 30- to 34-year-olds said lenders demand down payments of 15 percent.”

Moreover, “Roughly 60 to 72 percent of first-time homebuyers don’t believe they can get a mortgage and are underestimating their potential for qualifying for a conforming, conventional mortgage with a low down payment … The statistics for 2014 show that 1 in 5 borrowers who took out conforming, conventional mortgages put down 10 percent of less.”

The real reason millennials might not be buying

Rob Chrane, the founder and CEO of DownPaymentResource.com, recently hit on what might be the most important reason millennials are hanging back from purchasing their first home: their fear of rejection.

Many millennials were raised in an environment where everyone wins. Because of that, most are reluctant to engage in situations or activities where they might experience rejection.

Furthermore, unlike the Gen Xers and the baby boomers who saw huge runups in their real estate values, many millennials watched their parents struggle with their house payments or even experienced losing their home in the last downturn.

Combine all these factors together with the lack of inventory, tight lending standards and millennials’ misconceptions about the amount of down payment that is required to purchase, and you have a potent combination that has resulted in reluctance to buy.

To understand the magnitude of this challenge, Chrane used the Harvard JCHS study to project how many millennials in several of the country’s major metropolitan areas could qualify to buy a home today. The results are staggering:

Source: DownPaymentResource.com

There is a gold mine for agents who are willing to put the time in to convert these renters into first-time homeowners.

If you want to know more about how to tap into this lucrative market, read onto to part two.

Part 2: How to feed the first-time buyer pipeline

If you’re a new agent who would like to start making income right from the start or an experienced agent who is looking for new sources of clients, I’ve learned strategies that can help you achieve this goal in your market.

Open your eyes to tenant representation

I recently spoke with Zach Schabot, the executive vice president of Bamboo Realty. One of his top recommendations for both new and experienced agents is to open your eyes to tenant representation.

He doesn’t mean

The post The real reasons millennials aren’t buying homes and what agents can do about it appeared first on Down Payment Resource.

Quarterly Homeownership Program Index debunks five down payment myths

 Number of programs increase to more than 2,400

ATLANTA, GA, October 7, 2015 –Atlanta-based Down Payment Resource, the nation’s only databank for homebuyer programs, released its Third Quarter 2015 Homeownership Program Index. The volume of programs increased to more than 2,400, making it the fourth consecutive increase in programs.

The index reveals the wide range of homeownership opportunities available for homebuyers across the country. Recent surveys, including the America at Home survey by NeighborWorks America, show that consumers have the desire to buy, yet many are unaware of all their home financing options, the home buying process and may overestimate the down payment and home maintenance costs.

“Today’s consumers are motivated to buy, but the down payment continues to be a primary obstacle. Most homebuyers don’t know to look for or ask about homeownership programs that could help them both in the short and long term. The requirements and benefits of programs vary greatly and may help buyers save on their down payment and closing costs, gain a lower interest rate or enjoy a healthy tax credit for the life of their loan,” said Rob Chrane, CEO of Down Payment Resource.

Five misconceptions about down payments may be keeping buyers on the sidelines for longer than necessary.

Myth 1: Programs are only for first-time homebuyers. While first-time homebuyer programs may be common, it’s important to note that the definition of a first-time homebuyer is someone who has not owned a home in three years. In addition, the index finds that 37 percent of programs do not have a first-time homebuyer requirement.

Myth 2: Homeownership programs make financing more difficult. There are now more than 2,400 programs available across the country and 85 percent have funds available for homebuyers. It’s important for new buyers to seek homeownership education. It’s often a requirement for down payment programs and it gives buyers confidence with the home buying process, financing options, including down payment programs, and budgeting.

Myth 3: You need to put 20 percent down. Today, a 20 percent down payment is not required and depending on the buyer’s situation, it may not be optimal. Homeownership programs allow buyers to save on the down payment and retain savings for home maintenance and improvements. Today’s programs include grants, first mortgages with below-market interest rates and annual tax credits.

• 70 percent are down payment and closing cost assistance programs. Programs include grants which do not have to be repaid, second mortgages with a very low or no interest rate where the payment may be deferred or forgiven incrementally for each year the buyer remains in the home and Neighborhood Stabilization Programs designed to revitalize communities that have suffered from foreclosures, high unemployment and other concerns slowing housing recovery. Combined first mortgage and down payment programs, typically from state housing finance agencies are also included.
• 9 percent are first mortgage loans with below-market interest rates, lower or no mortgage insurance, or 100 percent financing.
• 9 percent are Mortgage Credit Certificates (MCCs) that provide up to $2,000 in annual tax credits for the life of the loan.
• 12 percent are additional programs, including Employer Assisted Housing programs offered by employers in certain markets and Individual Development Accounts that provide a matching down payment savings program.

Myth 4: Programs aren’t available in my area. There are programs available in every community across the country – rural and urban. It’s important for buyers to search for programs early in their home buying journey because it may help determine the most affordable part of town or price point.

• There are 19 programs available nationwide.
• 24 percent of programs are available state-wide, offering broad opportunities not specific to a county or neighborhood. State-wide programs can often be layered with local programs.
• States with the greatest number of homebuyer programs, ranked in order:
  1. California (412)
  2. Florida (230)
  3. Texas (206)
  4. Maryland (111)
  5. New York (77)
  6. Massachusetts (73)
  7. Pennsylvania (71)
  8. Colorado (67)
  9. Georgia (63)
  10. Washington (59)
  11. Complete list of state-by-state data.

Myth 5: It’s too expensive to buy in my market. More than 14 percent of programs are designed for individuals providing an important community service, including educators, protectors, healthcare workers, veterans and other special circumstances. Especially helpful in high cost markets, the programs help workers live in the community they serve.

About Down Payment Resource’s Homeownership Program Index

The Homeownership Program Index (HPI) measures the availability and characteristics of down payment programs administered by state and local Housing Finance Agencies (HFAs), nonprofits and other housing organizations. It analyzed state, local and national programs available in the DOWN PAYMENT RESOURCE™ registry as of September 30, 2015.

About Down Payment Resource

Down Payment Resource (DPR) creates opportunity for homebuyers, Realtors and lenders by uncovering programs that get people into homes. The company tracks 2,400 homebuyer programs through its housing finance agency partners. Winner of the 2011 Inman News Innovator “Most Innovative New Technology” award, DPR is licensed to Multiple Listing Services, Realtor Associations, lenders and housing counselors across the country.

# # #

Media Contact:

Tracey Shell, Down Payment Resource, (404) 317-8922, tshell@downpaymentresource.com

Download a PDF version of the release.

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The latest data from the Down Payment Resource Homeownership Program Index debunks 5 common myths about down payments and programs. Find all the data and state-by-state breakouts in this infographic and our full press release.

The post 5 Down Payment Myths Debunked appeared first on Down Payment Resource.

NEWS RELEASE

Download PDF of the full release.

Homeownership program eligible listings flagged on two new MLS websites

 Homes for Heroes® partnership displays information for ‘hero’ homebuyers

ATLANTA, GA, November 11, 2015 –Atlanta-based Down Payment Resource today announced that homebuyers can now view down payment program eligible listings on two new public MLS websites—MLSPINhomes.com and MoveInMichigan.com. Across both markets, 72 percent of homes may be eligible for some type of homeownership program. The company also launched a new partnership with Homes for Heroes to ensure more community heroes are aware of the discounts and savings available to them.

Eligible listings flagged on MLS websites

Consumers searching on the public MLS websites can benefit by immediately seeing which homes are eligible for down payment help. Home searchers can click the Down Payment Resource icon to check their eligibility. Both the home and the homebuyer must be eligible for the homeownership program.

As the largest MLS in New England, 73 percent of MLS PIN listings are eligible for a homeownership program. Consumers visiting MLSPINhomes.com will see the Down Payment Resource logo highlighted and can search for homes on a variety of criteria, including checking Down Payment Resource to find homes eligible for homeownership programs.

“MLS PIN is excited to offer Down Payment Resource help to the consumers in Massachusetts and others areas of New England by way of our subscribers and public website, MLSPINHomes.com,” said Kathy Condon, CEO, of MLS PIN. “We believe there are many families and individuals who are trying to purchase a home today and do not know such convenient and extensive financial assistance is readily available to them. As a tool for our agents, Down Payment Resource may assist them to make more connections, close more deals, and ultimately make dreams come true for their clients.”

Across southeastern Michigan, 71 percent of Realcomp II Ltd. listings are eligible for a homeownership program. When consumers go to MoveInMichigan.com, they create their own custom home search, selecting “down payment assistance” to view properties with program eligibility.

“We were really pleased to add Down Payment Resource to MoveInMichigan.com, not only to help increase consumer awareness of the many down payment assistance opportunities that exist for properties featured on our public search site, but also to make that assistance a reality for the buying and selling clients of Realcomp REALTORS^®”, said Karen Kage, CEO of Realcomp II Ltd.

Homes for Heroes

Down Payment Resource and Homes for Heroes are working together so any ‘hero’ homebuyer will see additional savings and discounts they may be eligible for when buying a home. Now, when consumers using Down Payment Resource identify themselves as a firefighter, active military or veteran, law enforcement, teacher or healthcare worker, they will see a Homes for Heroes link next to their homeownership program results. It will take them to the Homes for Heroes website so they can investigate rebates, savings and other discounts available to them when buying, selling or refinancing a home.

“There is so much to know and understand within the homeownership process, and it’s important to provide consumers with the best tools and information to help them get into the home that fits their needs. We believe Down Payment Resource allows consumers to make an informed decision on one of their largest purchases. We are thrilled to partner with Down Payment Resource to help insure our nation’s heroes know their options,” said Abby Waltz, National Director of Homes for Heroes.

“There are many homeownership program opportunities available for our community heroes and veterans. That’s why we include those factors in our program search. We’re excited to work with Homes for Heroes to provide exposure to more resources for this important group of homebuyers,” said Rob Chrane, CEO of Down Payment Resource.

About Down Payment Resource

Down Payment Resource (DPR) creates opportunity for homebuyers, Realtors and lenders by uncovering programs that get people into homes. The company tracks 2,400 homebuyer programs through its housing finance agency partners. Winner of the 2011 Inman News Innovator “Most Innovative New Technology” award, DPR is licensed to Multiple Listing Services, Realtor Associations, lenders and housing counselors across the country. For more information, please visit www.DownPaymentResource.com and on Twitter at @DwnPmtResource.

About MLS PIN

MLS Property Information Network (MLS PIN) is a privately REALTOR® owned multiple listing service with approximately 33,000 participants and subscribers throughout New England, which manages a comprehensive database of nearly 40,000 listings for sale. It is the largest MLS in New England, and one of the largest in the nation.

About Realcomp

Realcomp II Ltd. is owned by the following eight (8) Shareholder Boards and/or Associations of REALTORS®:

• Dearborn Area Board of REALTORS®
• Detroit Association of REALTORS®
• Eastern Thumb Association of REALTORS®
• Grosse Pointe Board of REALTORS®
• Lapeer and Upper Thumb Association of REALTORS®
• Livingston County Association of REALTORS®
• Greater Metropolitan Association of REALTORS®
• North Oakland County Board of REALTORS®

As Michigan’s largest REALTOR®-owned Multiple Listing Service, Realcomp II Ltd., has grown to serve more than 13,100 valued broker, agent, and appraiser customers in over 2,200 real estate offices across Southeastern Michigan since it began in 1994. Driven by integrity, Realcomp delivers great data to empower REALTORS® to achieve results.

About Homes for Heroes

Homes for Heroes, The Nation’s Largest Hero Savings Program, offers savings and rebates to firefighters, law enforcement, emergency medical services, military (active and veterans), healthcare workers and teachers when they buy, sell or refinance a home. The program was created after the tragic events of 9/11 as a forever “Thank you” to the men and women who have given so much. As of October 2015, Homes for Heroes has given back over $11.8 million to our nation’s heroes and helped more than 7,000 heroes and their families.

Media Contacts:

Tracey Shell, Down Payment Resource, (404) 317-8922, tshell@downpaymentresource.com

Abby Waltz, Homes for Heroes, (763) 777-5807, abby@homesforheroes.com

The post Partnerships show consumers eligible listings and ‘heroes’ savings appeared first on Down Payment Resource.

The recently released National Association of REALTORS® Profile of Buyers and Sellers gives professionals more insight into today’s homebuyer…and helps us understand what we can be doing better as an industry.

This is the third year in a row that the share of first-time buyers declined. A healthy industry expects about 40 percent of buyers to be first-timers, yet we are now down to just 32 percent – the second lowest rate since the survey’s inception in 1981.

In fact, Lawrence Yun, NAR chief economist, said the housing recovery’s missing link continues to be the absence of first-time buyers. While there are many positive economic developments, including low mortgage rates and better job prospects for young buyers, there are also many hurdles, including saving for a down payment, student loan debt and increasing rent and home prices. Respondents said the saving for the down payment was the most difficult step in the home buying process.

But, maybe as an industry we are headed in the right direction. There is a wealth of information about the home buying process online, online homeownership courses make education easier and you can use your smart phone to set up any number of custom home searches and alerts. Buyers are doing more research first and still using professionals at a very high rate.

The survey found that 59 percent of recent buyers were very satisfied with their home buying process, up from 56 percent a year ago. And, among buyers who used the Internet during their home search, 84 percent found detailed information about properties for sale very useful. Buyers are engaged, researching and have a better experience. As more information is provided to would-be buyers, they are consuming it.

Yet, the full recovery of the market is yet to be seen.

We’ve already seen that buyers aren’t overwhelmed by more information—they are using it to help move their home search forward. What if buyers had even more access to information about homeownership programs that could help make their home purchase more affordable? What if more agents and lenders partnered with their state and local housing agencies to promote available programs? What if more local homebuyer seminars were offered? What if more buyers took online educational courses?

Let’s do more to move the needle on the real issue that everyone’s been talking about for years now: how to help move more first-time homebuyers into homeownership.

Download our recent report on down payment programs to understand why we think homebuyers’ use of down payment programs is poised to grow.

The post Getting to know today’s buyer appeared first on Down Payment Resource.

Inman 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.

We’d like to invite you to join us this year and we have a special, discounted rate to offer you and your team. Click here to register and enter discount code DownPaymentResourceICNY2016 for $100 off.

Here are the top three reasons we wouldn’t miss Inman Connect:

• 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 many strategic decisions for our company. Check out our list of partners today!
• Awards: We were thrilled to be named the 2011 Most Innovative Technology. We wouldn’t miss getting to know the up and coming people, businesses and technologies that are improving the way we do real estate. Wonder what speakers, workshop leaders and startup alley participants we’ll be honoring with the 2016 awards?
• Sessions: We look forward to taking in sessions dedicated to discussing what’s next for digital marketing, MLSs, data and agent success.

Learn more about Inman Connect. And secure your spot before tickets sell out. Use discount code DownPaymentResourceICNY2016 for $100 off.

Prices increase, Dec. 1 so take action today to ensure you get your maximum discount!

Best,

Rob Chrane

rchrane@downpaymentresource.com

The post Join us at Inman Connect: Your discount code appeared first on Down Payment Resource.

Rob Chrane recognized as a HousingWire Vanguard Award™ winner

Inaugural awards program recognizes 27 housing industry leaders

ATLANTA, GA, December 1, 2015–Rob Chrane, CEO of Atlanta-based Down Payment Resource, today was recognized as a HousingWire Vanguard Award™ winner. The inaugural awards program recognizes 27 C-level and business unit executive leaders in housing and mortgage finance. The winners were chosen by HousingWire editorial staff based on tangible leadership within their companies and the industry at large.

Chrane founded Down Payment Resource in 2008 with the mission to solve a long-standing problem in the real estate industry: create a way for homebuyers and real estate professionals to find accurate information about the many homeownership programs that are available in every community across the country. As a former Realtor and lender with more than 30 years of industry experience, Chrane saw first-hand how frustrating it was to keep up with the requirements for each program, determine what homes and buyers are eligible and get a deal completed efficiently.

Through Chrane’s leadership, the company transitioned from a start-up, to the nation’s leading source for information about down payment programs. Today, Down Payment Resource is available to more than 380,000 real estate professionals across 22 MLSs and Realtor Associations. Down Payment Resource is also used by housing counselors and, most recently, lenders. The company flags eligible listings with its icon so buyers can click to learn more about their options during the home search process.

“The Vanguard Award reflects the passion and commitment of our entire Down Payment Resource team. I’m honored to accept this on behalf of these outstanding individuals whose efforts resulted in providing real estate professionals and homebuyers with a completely new way of discovering homeownership programs,” said Chrane. “It’s a privilege to be recognized among some of housing’s most visionary leaders.”

Most recently, Down Payment Resource completed a rebranding and development project to improve the user experience, expanded to serve financial institutions, developed reports and research to educate the industry and consumers and hosted educational webinars featuring housing finance agency program providers.

“The HW Vanguard Award winners are some of the most powerful and influential leaders in our industry. They represent the cutting edge of management and strategy in the mortgage finance field, and the kind of leadership the housing industry needs to continue to drive the American economy forward,” said Jacob Gaffney, HousingWire editor-in-chief.

 About Down Payment Resource

Down Payment Resource (DPR) creates opportunity for homebuyers, Realtors and lenders by uncovering programs that get people into homes. The company tracks 2,400 homebuyer programs through its housing finance agency partners. Winner of the 2011 Inman News Innovator “Most Innovative New Technology” award, DPR is licensed to Multiple Listing Services, Realtor Associations, lenders and housing counselors across the country. For more information, please visit www.DownPaymentResource.com and on Twitter at @DwnPmtResource.

About HousingWire

HousingWire is by far the nation’s most influential source of news and information for U.S. mortgage markets, boasting a readership that spans lending, servicing, investments and real estate market participants as well as financial market professionals.

Winner of numerous awards, including a 2012 Eddie Award for national editorial excellence in the B-to-B Banking/Business/Finance, HousingWire has been recognized for excellence in journalism by the Society of Business Editors and Writers, the American Society of Business Press Editors, the National Association of Real Estate Editors and Trade Association Business Publications International.

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The post Rob Chrane recognized with HousingWire Vanguard Award appeared first on Down Payment Resource.

By Rob Chrane

Agents: Reduce competition by educating on-the-fence buyers about their home purchasing options

In recent years, housing has failed to move the needle in growing transactions or homeownership rates, which is causing some to believe real estate is a zero-sum game.

We begin to think there will only be a certain number of transactions in a given year, and we’re all just fighting for a piece of the pie. But, what about growing incremental sales? Isn’t that the ultimate goal?

Bear with me because it’s the New Year and the time to be both reflective and aspirational.

A zero-sum game

A few months back, the Notorious R.O.B. (Rob Hahn) tackled this zero-sum game issue. We have a lot of respect for Hahn’s industry insights and wouldn’t want to have to match wits in a dark alley.

To be sure, he is talking about the inability for technology alone to drive incremental home sales. Still, it got me thinking, does anyone have the ability to make more sales happen?

Are down payments a core issue?

Surveys such as the National Association of Realtors Profile of Home Buyers and Sellers find that first-time homebuyers are at a new low, and the finger’s pointed at the core challenges of saving for a down payment, student loan debt and increasing rent and home prices.

In fact, respondents said saving for the down payment was the most difficult step in the homebuying process.

LendingTree released some new data showing a rise in the average size of down payments and concluding that down payments are not, in fact, holding buyers back.

That got me thinking even more.

If down payments aren’t holding buyers back, why aren’t we seeing more incremental sales? It’s likely the rise in down payments is attributed to the zero-sum game approach.

For those who were already going to buy a home, their down payment increased. These are not new or incremental buyers.

The good news

Here’s the good news: we don’t believe real estate is a zero-sum game. In fact, it sounds more like an excuse. There’s an opportunity to show more new buyers a path to homeownership.

An Ipsos consumer survey found that consumers overestimate both the down payment funds and credit scores needed to buy.

Guess what? That perception becomes a reality until we work together to educate buyers on another path — a path that could result in more new sales.

Today, we have an opportunity for enterprising souls with spirits of abundance rather than scarcity.

Hahn noted that if one vendor in real estate ascends, someone else has to lose. It’s true that’s a possibility, but what if the vendor ascending creates more home sales — don’t all boats rise? I’ll choose the latter.

We need to educate consumers that the financing for their home purchase is as individual as they are.

There are low down payment options, credit scores don’t have to top 780, and they might qualify for a homeownership program that can help them save on the their purchase, benefit from a tax credit or a below-market-level interest rate.

To drive incremental sales, consumers need to know there are options that might work for them. We need to motivate buyers to investigate instead of opting out of homeownership.

What plans do you have in 2016 to drive more sales?

The post Why real estate isn’t a zero-sum game appeared first on Down Payment Resource.

Some marketing goals take weeks and months to accomplish. With Down Payment Resource, all you need is a few minutes to make a difference. Just ask Carrie Van Beusekom.

During a recent webinar, DPR best practices for agents, we showed agents using DPR through their MLS how they can set up their own DPR Personal Marketing Tool on their website, social sites and email signature. Carrie Van Beusekom with Coldwell Banker Burnet in Edina, Minnesota did just that. Before the webinar was over, Carrie copied her unique DPR link, chose a down payment icon and created her first business Facebook post highlighting down payment programs and how buyers can search for help with her new link.

We followed up with Carrie to find out more about her business and how she works with her buyers.

Why do you think many buyers are still on the sidelines?

Twenty years ago I believed because I was in my early 30s and had an hourly, support job, I couldn’t afford or qualify to buy my first home. When I finally inquired, I was so happy and surprised I could and I did. But fear and discouragement kept me from calling anyone for a long time. That still holds true for a large percentage of our country today. They believe that homeownership is beyond their reach because maybe it was for their parents or grandparents or they were displaced a few years ago by foreclosure or short sale.

What’s happening in your market?

I believe the Minneapolis rental market is tight right now. There are not a lot of vacancies in some communities and there are wait lists. I belong to a closed Facebook group that is strictly for people to lease or lease out property in the Twin Cities area. All day long people are in search of (‘ISO’) someplace to live. Down Payment Resource will be a great tool for me to show them that there are other alternatives than continuing to rent.

What made you decide to use Down Payment Resource in your business?

I thoroughly love working with buyers. I get to establish a relationship and by the end of the journey I can call them friend. But the first question buyers ask is always: “do you think I would qualify?” Down Payment Resource is a tool that will help me to help them understand how a property could be a good fit for them, not just as a home, but financially with the help of a homeownership program.

This tool gives me credibility as a real estate professional and for anyone that knows me…I like to work effectively but efficiently! I couldn’t wait to get started!

What was the process like to get started?

Setting up the Down Payment Resource posts on facebook, the hyperlink for the “Call-to-Action” button, and the hyperlink in my email was very easy. The step-by-step directions from the link that is provided during the webinar made it so easy to understand and complete. I look forward to helping my clients that much more!

The post Agent launches DPR marketing tool DURING webinar! appeared first on Down Payment Resource.

Atlanta, GA, February 18, 2016 – Atlanta-based Down Payment Resource, the nationwide databank for homebuyer programs, today released its fourth quarter 2015 Homeownership Program Index (HPI). There are now 2,406 homeownership programs available and 84 percent currently have funds available to prospective homebuyers, down one percent from last quarter.

The HPI found 63 percent of programs include a first-time homebuyer requirement. First-time homebuyers are defined as a buyer who has not owned a home in the past three years.

Across 15 percent of homeownership programs, specific incentives are available for community heroes. These programs include special benefits for veterans, educators, protectors, firefighters, healthcare workers and disabled homebuyers.

A recent Bankrate.com survey found that almost a quarter of non-owners don’t know how much they would put down on a house. Only 9 percent of renters said they would put down 1 – 5 percent.

“Renter surveys reveal the lack of understanding among consumers about down payments and current requirements. It’s important for prospective buyers to research their home loan and down payment options,” said Rob Chrane, CEO of Down Payment Resource.

Significant programs updates
While the number of programs and funding remained steady, significant updates and edits were made to the programs included in Down payment Resource to ensure information is current for real estate professionals and homebuyers.

Updates made in Down Payment Resource in fourth quarter 2015:

• 5,134 specific changes were made across all programs
• 761 programs were updated with new information about guidelines, funding status and contact information
• 51 new programs were added
• 58 previous programs were expired, confirmed no longer available and removed

“This quarter’s Homeownership Program Index reveals the significant effort it takes to maintain the accuracy of our program databank. With thousands of changes occurring in the fourth quarter alone, we can be sure we have the latest information about funding status, contact information, coverage area and more,” said Chrane.

Program types

Down payment and closing cost programs make up 70 percent of programs: One common example is a second mortgage with a very low or no interest rate where the payment may be deferred or forgiven incrementally for each year the buyer remains in the home. For example, the homebuyer gets an FHA or conventional first mortgage and applies for a homeownership program that is a second mortgage funding the down payment. A percentage of the down payment is forgiven each year the buyer occupies the home.

Mortgage Credit Certificates (MCC) make up 8 percent of programs: An MCC program reduces the amount of federal income tax a homebuyer pays each year and it’s good for the life of the loan. It’s a tax credit, not a deduction, so it directly reduces the taxes owed, up to $2,000 annually.

First mortgage loans make up 9 percent of programs: These programs are home loans that may feature below-market interest rates, lower or no mortgage insurance, or 100 percent financing. Issued by housing finance agencies, these loans can be even more affordable than other first mortgage products and buyers may be able to layer them with other grants or down payment programs for even more savings.

Additional programs make up 13 percent of programs: These programs may include Employer Assisted Housing programs offered by employers in certain markets and Individual Development Accounts that provide a matching down payment savings program. Programs are often designed to meet specific needs of the community.

Where programs are available

There are 25 programs available nationwide. Regionally, the most programs are found in the South (942), followed by the West (728). View a complete list of state-by-state program data.

About Down Payment Resource

Down Payment Resource (DPR) creates opportunity for homebuyers, Realtors and lenders by uncovering programs that get people into homes. The company tracks 2,400 homebuyer programs through its housing finance agency partners. Winner of the 2011 Inman News Innovator “Most Innovative New Technology” award, DPR is licensed to Multiple Listing Services, Realtor Associations, lenders and housing counselors across the country. For more information, please visit www.DownPaymentResource.com and on Twitter at @DwnPmtResource.

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