More than 68 million single-family and condo households would qualify for a down payment program available in the county where they are located, found a new study by Down Payment Resource and RealtyTrac.
Some highlights of the study include:
- The average amount of down payment assistance is $11,565.
- More than half of the available down payment programs are known as “Community Seconds,” a second mortgage issued by an HFA (or housing finance agency) or nonprofit organization with a very low or no interest rate. These programs could reduce the amount of cash needed to close from $20,000 to $200.
- Other major down payment programs include first mortgage loans with low interest rates or 100 percent financing or mortgage credit certificates (MCCs), which provide up to $2,000 in annual tax credits for the life of the loan.
- Illinois is listed as one of the top 10 states with the greatest number of down payment programs.
- Cook County is one of the top 10 counties with the most homes qualifying for down payment assistance: approximately 85 percent or 1.2 million homes.