Key Takeaways:
– Freddie Mac has launched a free tool called DPA One that helps lenders find and compare down payment assistance programs for borrowers.
– The tool streamlines the available state programs into a single source, making it easier for lenders to access and compare the resources.
– DPA One allows lenders and housing counselors to enter client eligibility parameters, download results, and compare up to three programs side by side to make quicker lending decisions.
– The tool currently covers down payment assistance programs for 48 state housing finance agencies and has plans to include more programs in the future.
– The down payment assistance offered through state and local sources can be used by low-income borrowers to reach the 3% down payment needed for Freddie Mac’s Home Possible mortgage.
– Several lenders, including Rocket, Guild, Guaranteed Rate, Zillow Home Loans, Wells Fargo, and CrossCountry, offer low down payment programs or down payment assistance for first-time homebuyers.
HousingWire:
Freddie Mac is rolling out a free tool for lenders, DPA One, that matches borrowers with down payment assistance programs across the country. DPA One streamlines the available state programs into a single source that lenders can use to find and compare programs for their borrowers.
“Time and again, research reveals that the down payment is the single largest hurdle first-time homebuyers need to overcome to attain homeownership,” said Sonu Mittal, senior vice president of acquisitions at Freddie Mac. “But finding and comparing the many programs and their guidelines is challenging.”
Down payment assistance is offered through state finance agencies as well as local and municipal sources, which makes it difficult for lenders and borrowers to access the available resources.
“DPA One delivers a one-stop shop at no cost that brings lenders and their borrowers greater detail and visibility into these programs, while seamlessly connecting the right assistance program with the lender, housing counselors and borrowers who need this assistance the most,” Mittal said.
The new tool allows lenders and housing counselors to enter client eligibility parameters, download results and compare up to three programs side by side to make quicker lending decisions. The single, standardized format enables state agencies to manage, edit and update their programs in real-time.
“DPA One will make it easier for mortgage lenders of all kinds to participate in HFA down payment assistance programs so they can more easily reach the underserved borrowers these programs were designed to help,” said Stockton Williams, executive director of the National Council of State Housing Agencies, in a press release from Freddie Mac.
DPA One currently covers down payment assistance programs for 48 of the 50 state housing finance agencies and has local and municipal programs for Texas and Minnesota. By the end of the year, DPA One will have local and municipal assistance programs for Florida, Virginia, California, and Kentucky and expects to bring the remaining local and state programs online throughout 2024.
Dan McMahon, home finance director with Colorado Housing and Finance Authority, said in the release: “DPA One is an exciting innovation that simplifies the intake process and offers lenders a standardized view of various down payment assistance programs across the state. This will ultimately help connect more homebuyers with the resources they need to achieve homeownership.”
The down payment assistance offered through state and local sources can be used by very low to low-income borrowers to reach the 3% down payment needed for Freddie Mac’s Home Possible mortgage. A number of lenders are offering low down programs or down payment assistance for first-time homebuyers, including Rocket, Guild, Guaranteed Rate, Zillow Home Loans, Wells Fargo and CrossCountry.
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Property Chomp’s Take:
So, have you heard about the new tool that Freddie Mac is rolling out for lenders? It’s called DPA One, and it’s designed to match borrowers with down payment assistance programs across the country. This tool is going to be a game-changer for both lenders and borrowers who are looking for help with their down payments.
You see, the down payment is often the biggest hurdle for first-time homebuyers. It can be a significant amount of money that many people struggle to come up with. That’s where down payment assistance programs come in. These programs are offered by state finance agencies, as well as local and municipal sources. The problem is that there are so many different programs out there, and it can be challenging for lenders and borrowers to access and compare all the available resources.
That’s where DPA One comes in. This tool acts as a one-stop shop for lenders and borrowers, providing them with a centralized source of information on down payment assistance programs. Lenders and housing counselors can enter client eligibility parameters and quickly find programs that match their borrowers’ needs. They can also download the results and compare up to three programs side by side to make faster lending decisions. The tool uses a standardized format, which makes it easier for state agencies to manage, edit, and update their programs in real-time.
The National Council of State Housing Agencies is excited about DPA One, as it will make it easier for mortgage lenders to participate in down payment assistance programs. These programs are designed to help underserved borrowers, and DPA One will help connect them with the resources they need to achieve homeownership.
Currently, DPA One covers down payment assistance programs for 48 of the 50 state housing finance agencies. It also includes local and municipal programs for Texas and Minnesota. By the end of the year, DPA One will have local and municipal assistance programs for Florida, Virginia, California, and Kentucky. And throughout 2024, the tool will bring the remaining local and state programs online.
One example of how this tool is making a difference is in Colorado. According to Dan McMahon, the home finance director with the Colorado Housing and Finance Authority, DPA One simplifies the intake process and offers lenders a standardized view of various down payment assistance programs across the state. This will ultimately help connect more homebuyers with the resources they need to achieve homeownership.
The down payment assistance programs offered through state and local sources can be used by very low to low-income borrowers to reach the 3% down payment needed for Freddie Mac’s Home Possible mortgage. This is great news for first-time homebuyers who are looking for affordable options to make their homeownership dreams a reality. And with lenders like Rocket, Guild, Guaranteed Rate, Zillow Home Loans, Wells Fargo, and CrossCountry offering low down programs or down payment assistance, there are plenty of options available for those in need.
In conclusion, DPA One is set to revolutionize the way lenders and borrowers access and compare down payment assistance programs. With its centralized platform and standardized format, this tool will make it easier for lenders to connect underserved borrowers with the resources they need to achieve homeownership. So, if you’re in the market for a new home and need help with your down payment, DPA One might just be the tool you’ve been waiting for.
