(Editor's Note: This article covers DPA programs for HFAs that we rate under "Methodology And Assumptions: Housing Finance Agencies And Social Enterprise Lending Organizations," Dec. 27, 2016, and "Methodology For Rating U.S. Public Finance Mortgage Revenue Bond Programs," Oct. 10, 2022. )
Key Takeaways
- More HFAs are providing down payment assistance. Approximately 60% of them in 2022, compared with 41% in 2017, offered some form of down payment assistance to more than 90% of home buyers.
- This trend has increased in tandem with rising home prices, with average down payment assistance provided per borrower of $10,000 in 2022 compared with $7,400 in 2017.
- These programs' sources of funding are diversifying. More agencies are using outside money such as state appropriations or their general fund to help borrowers purchase homes.
The Expanding Use Of Down Payment Assistance
Post-pandemic, housing affordability has fallen. As home prices skyrocketed in the U.S. during the COVID-19 pandemic while housing starts remained lackluster, buying a home became more difficult for low- and middle-income or first-time buyers. The recent run-up in mortgage rates has only exacerbated the situation, making mortgage payments more expensive and limiting housing supply by constraining sellers (chart 1). U.S. housing finance agencies' (HFAs') down payment assistance programs (DPA) have played an increasingly important role in bridging the widening affordability gap for first-time buyers.
Rated HFA borrowers' use of DPA products has increased considerably since 2017 (chart 2). In 2022, about 60% of agencies offered some form of DPA to more than 90% of home buyers; this is up from 41% of agencies in 2017. In the same year, the average DPA provided per borrower was approximately $10,000 compared with approximately $7,400 in 2017. Average DPA provided over borrower income rose to 15% of an HFA borrower's income in 2022 from 13% in 2017.
Chart 1
Chart 2
Housing Market Dynamics Stress First-Time Homebuyers
Median income to housing values has fallen in every state. Rising home prices have made the move into homeownership increasingly difficult. From 2016 to 2021, states' median home value jumped an average of 37%, with the highest increase in Idaho, where it rose 97%, from approximately $196,000 to $387,000. In contrast, for the same time period, the average increase in median income was 17% (chart 2). Although incomes have been increasing, the gap between home prices and income has been widening, making it tougher for low-to-moderate income and first-time homebuyers to purchase. In 2022, most HFA borrowers earned 60%-79% of area median income. We believe greater use of HFA DPA assistance has become, and will remain, essential for lower-income first-time buyers.
Average HFA borrower income rose 16% between 2017 and 2022. In comparison, between 2016 and 2021, the average HFA purchase price increased 26%, or $45,000, according to the National Council of State Housing Agencies (NCSHA), while the average sales price in the U.S. rose 37%, or approximately $139,000, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
The gap between HFA borrowers' income and average home price in their respective regions will likely remain broad in the near term. As of fourth-quarter 2022, U.S. home prices remained overvalued in 85% of metropolitan statistical areas (see map). For more information, see "U.S. Home Price Overvaluation Continues To Ease But Remains High" published Aug. 7, 2023, on RatingsDirect). As of September 2023, 30-year mortgage rates are at a 21-year high. Depending on the trajectory of prices, which are contingent on a variety of factors such as the 30-year fixed-rate mortgage, local housing market dynamics, and economic fundamentals, HFA borrowers will likely continue to rely on DPA.
From 2017 to 2022, the average DPA dollar amount increased more than 43%. With the surge in borrowers' usage of DPA and the higher dollar amount provided per borrower, aggregate DPA lending has risen considerably. According to NCSHA, HFAs provided a total of $1.1 billion in DPA in 2021 up from $77 million in 2017. Many agencies have linked growth in their DPA programs to growth of on-balance-sheet lending. For example, Pennsylvania Housing Finance Agency (PHFA) attributes record-high loan originations to its DPA program, which launched in 2020, with more than 80% of borrowers receiving DPA in 2022 compared with fewer than 40% in 2017. Between 2017 and 2022, PHFA's loan portfolio climbed to $4.3 billion from $3.4 billion.
Credit Implications Of DPA Programs
Our analysis of DPA lending and loss assumptions varies by program and agency. Typically, we incorporate HFAs' DPA programs into our credit analysis, quantitatively in financial metrics and qualitatively in our assessment of the agency's management and strategy. Some HFAs hold DPA loans on their balance sheet outside of their mortgage revenue bond (MRB) programs; however, the majority hold their DPA loans as assets in in their MRB program's trust. We typically include the assumed loss on the DPA loans in our capital adequacy analysis for an issuer credit rating on an HFA, whether held within the MRB program or separately on the HFA's balance sheet.
Most DPA is structured as amortizing loans followed by deferred or due-on-sale loans (chart 3), but some are structured as forgivable. We typically assume 100% loss on forgivable loans in our loan loss assumptions. For DPA loans that are externally funded, such as by state grants, we typically also include the source of funding if it is included in the HFA's financial statements. While the DPA programs are typically operated within HFAs' MRB programs, they will often exclude DPA loan balances from the MRB total loans and parity assets for cash flow purposes. Accordingly, we apply DPA loan losses to MRBP parity assets only when the loans are included in the program cash flows, if the loans require repayment and if we have available loan data.
Of the MRBPs we rate, only 10% include their second mortgages as assets in cash flows. In general, DPA products will boost balance sheets, bolstering loan origination. Furthermore, programs that require repayment will increase margins and annuity revenue even more while still promoting and enabling access to otherwise unattainable home ownership, which we view as a credit strength, given the historically low delinquency rates of HFA borrowers.
Chart 3
DPA product funding comes from a variety of sources. These sources consist of HFA general fund reserves, portions of bond proceeds, to-be-announced (TBA) premiums, or other outside funds (chart 4). Many agencies use more than one source to fund their DPA products. The most common source is the general fund. Of note, 43% of HFAs using general fund revenues have recorded higher equity ratios, despite offering more DPA assistance in 2022 than in 2017. Generally, equity for these agencies has risen because, along with DPA lending, their on-balance-sheet loan programs have increased year over year, which has, in turn, lifted annuity revenues and equity. This has been true for most HFAs that have expanded their DPA programs and lending portfolios, regardless of the source, or combination of sources, of funding for the program. Another reflection of program success and mutual benefit, is that, in general asset quality hasn't weakened as use of DPA programs has reached new highs. In fact, nonperforming assets dropped to pre-pandemic lows in fiscal 2022.
Chart 4
DPA Programs Are Evolving
As demand swells and changes, many agencies are adapting their DPA programs. Changes include increases in income limits, assistance amounts, and creation of new first-generation programs. Rising assistance amounts combined with the shortage of affordable homes will likely lead to steady high and increasing usage of DPA products. In addition, many state legislatures are allocating more money for HFAs to create or expand their DPA offerings. The following are some examples of recent agency activity by state.
Massachusetts
Massachusetts HFA (MassHousing) received state appropriations in 2022 from American Rescue Plan Act money, which led to the creation of the MassDREAMS program. The program provided a grant up to $50,000 in DPA and closing costs for residents in one of 29 communities identified as most affected by COVID-19 and up to $30,000 for residents in every other city or town; as well, it could be combined with MassHousing's other DPA offerings. Due to overwhelming demand, MassHousing closed the MassDREAMS program after 79 days, having served 1,142 families, but it still offers other DPA options.
Minnesota
Earlier this year, Minnesota HFA was allocated $100 million from the state legislature to establish a community-based first-generation homebuyers DPA program pilot project.
Rhode Island
Rhode Island Housing is administering a new DPA program, created in January 2023, that offers a grant of $17,500 to first-time homebuyers.
Utah
In July 2023, with funding from a $50 million state legislature allocation, Utah Housing Corp. began administering a first-time homebuyer assistance program that offers up to $20,000.
As evidenced by these examples, and supported by the numbers, continued state funding to HFAs for DPA programs remains very important; we consider state funding a credit strength for agencies, allowing them to attract more borrowers and supporting loan production without depleting MRBP or general fund equity.
We expect DPA will remain a critical component for HFAs to keep supporting sustainable first-time homeownership in their states. As agencies adapt their programs to changing needs and economies, the impact and structure of these programs could change as well, but, in our view, will still serve HFAs' public mission.
Table 1
| Purchase price and income, 2017 versus 2022 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $ | ||||||||||||||
| Housing finance agency | Average HFA borrower home purchase price, 2022 | Average HFA borrower home purchase price, 2017 | Average HFA borrower income, 2022 | Average HFA borrower income, 2017 | Average DPA per borrower, 2022 | Average DPA per borrower, 2017* | ||||||||
| Alaska Housing Finance Corp. | N.A. | 250,000-299,999 | 92,000 | 78,900 | N.A. | N.A. | ||||||||
| Arkansas Development Finance Authority | 150,000-199,999 | N.A. | 68,925 | N.A. | N.A. | N.A. | ||||||||
| California Department of Veterans Affairs | 250,000-299,999 | 250,000-299,999 | 136,800 | 77,061 | 8,708 | N.A. | ||||||||
| California Housing Finance Agency | N.A. | 200,000-249,999 | N.A. | 70,065 | N.A. | 18,703 | ||||||||
| Colorado Housing and Finance Authority | 300,000-349,999 | 250,000-299,999 | 74,411 | 60,588 | 13,110 | 10,197 | ||||||||
| Connecticut Housing Finance Authority | 200,000-249,999 | 150,000-199,999 | 70,000 | 59,000 | 28,966 | 11,171 | ||||||||
| DC Housing Finance Agency | 350,000+ | 300,000-349,999 | 75,000 | 85,611 | 10,000 | 10,056 | ||||||||
| Georgia Housing and Finance Authority | 150,000-199,999 | 100,000-149,999 | 56,726 | 50,000 | 10,503§ | 10,396 | ||||||||
| Idaho Housing and Finance Association | 350,000+ | 150,000-199,999 | 92,337 | 51,400 | 13,340 | 4,000 | ||||||||
| Illinois Housing Development Authority | 150,000-199,999 | 100,000-149,999 | 62,162 | 52,558 | 6,362 | 8,800 | ||||||||
| Iowa Finance Authority | 100,000-149,999 | 100,000-149,999 | 63,460 | 59,165 | 3,700 | 2,500 | ||||||||
| Kentucky Housing Corporation | 150,000-199,999 | 100,000-149,999 | 73,439 | 67,333 | 6,844 | 6,468 | ||||||||
| Maine State Housing Authority | 200,000-249,999 | 100,000-149,999 | 67,728 | 50,900 | 4,375 | 3,500 | ||||||||
| Massachusetts Housing Finance Agency | 250,000-299,999 | 250,000-299,999 | 58,256 | 58,000 | 13,436 | 7,215 | ||||||||
| Michigan State Housing Development Authority | 100,000-149,999 | 100,000-149,999 | 58,364 | 52,169 | 8,775 | 6,375 | ||||||||
| Minnesota Housing Finance Agency | 200,000-249,999 | 150,000-199,999 | 71,952 | 57,000 | 12,734 | 7,801 | ||||||||
| Missouri Housing Development Commission | 150,000-199,999 | 100,000-149,999 | 64,467 | 57,179 | 6,436 | 4,821 | ||||||||
| Montana Board of Housing | 200,000-249,999 | 150,000-199,999 | 64,481 | 53,000 | 9,165 | 5,843 | ||||||||
| Nebraska Investment Finance Authority | 150,000-199,999 | 100,000-149,999* | 62,306 | 57,982* | 7,420 | 5,238 | ||||||||
| Nevada Housing Divison | 250,000-299,999 | 200,000-249,999 | 70,000 | 59,935 | 9,931 | 7,674 | ||||||||
| New Jersey Housing and Mortgage Finance Agency | 200,000-249,999 | 150,000-199,999 | 76,653 | 51,982 | 10,005 | 14,829 | ||||||||
| New Mexico Mortgage Finance Authority | 200,000-249,999 | 100,000-149,999 | 56,112 | 49,246 | 8,000 | 5,726 | ||||||||
| North Carolina Housing Finance Agency | 150,000-199,999 | 100,000-149,999 | 51,719 | 47,630 | 7,891 | 10,400 | ||||||||
| Pennsylvania Housing Finance Agency | 150,000-199,999 | 100,000-149,999 | 65,125 | 59,073 | 9,655 | 4,019 | ||||||||
| Rhode Island Housing and Mortgage Finance Corporation | 300,000-349,999 | 150,000-199,999 | 77,783 | 66,000 | 11,941 | 7,436 | ||||||||
| South Dakota Housing Development Authority | 200,000-249,999 | Less than 100,000 | 73,411 | 38,000 | 8,655 | 4,387 | ||||||||
| Tennessee Housing Development Agency | 200,000-249,999 | Less than 100,000 | 62,253 | 39,500 | 10,325 | 7,279 | ||||||||
| Texas Department of Housing and Community Affairs | 200,000-249,999 | 150,000-199,999 | 62,082 | 52,591 | 8,820 | 6,425 | ||||||||
| Utah Housing Corporation | 350,000+ | 150,000-199,999 | 75,547 | 55,095 | 20,742 | 10,373 | ||||||||
| Virginia Housing Development Authority | 200,000-249,999 | 150,000-199,999 | 71,547 | 62,933 | 7,162 | 3,870 | ||||||||
| West Virginia Housing Development Fund | 100,000-149,999 | 100,000-149,999 | 50,000 | 57,343 | 6,800 | 6,318 | ||||||||
| Wisconsin Housing & Economic Development Authority | 150,000-199,999 | Less than 100,000 | 57,134 | 39,000 | 7,341 | 3,918 | ||||||||
| Wyoming Community Development Authority | 200,000-249,999 | 150,000-199,999 | 54,786 | 53,000 | 8,421 | 6,244 | ||||||||
| N.A.--Not available. *Per National Council of State Housing Agencies. §YTD 2023, Jan-Aug. Sources: S&P Global Ratings HFA DPA Survey, June 2023; National Council of State Housing Agencies State HFA Factbook: 2017 NCHSA Annual Survey Results where noted. | ||||||||||||||
Table 2
| Borrower income as % of area median income in 2022 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (%) | Borrowers earning less than 50% of AMI | Borrowers earning 50%-59% of AMI | Borrowers earning 60%-79% of AMI | Borrowers earning 80%-99% | Borrowers earning 100%+ of AMI | |||||||
| Colorado Housing and Finance Authority | 2 | 4 | 22 | 29 | 43 | |||||||
| Connecticut Housing Finance Authority | 23 | 23 | 37 | 15 | 2 | |||||||
| DC Housing Finance Agency | 10 | 10 | 60 | 15 | 5 | |||||||
| Department of Veteran Affairs of the State of California | 18 | 6 | 16 | 33 | 28 | |||||||
| Idaho Housing and Finance Association | 2 | 3 | 13 | 18 | 64 | |||||||
| Illinois Housing Development Authority | 25 | 15 | 28 | 20 | 12 | |||||||
| Iowa Finance Authority | 18 | 16 | 30 | 24 | 13 | |||||||
| Kentucky Housing Corporation | 4 | 7 | 26 | 19 | 44 | |||||||
| Maine State Housing Authority | 3 | 9 | 27 | 30 | 31 | |||||||
| MassHousing | 30 | 37 | 29 | 4 | 0 | |||||||
| Michigan State Housing Develpment Authority | 14 | 16 | 30 | 23 | 17 | |||||||
| Minnesota Housing and Finance Agency | 25 | 19 | 30 | 17 | 9 | |||||||
| Missouri Housing Development Commission | 3 | 4 | 16 | 19 | 58 | |||||||
| Montana Board of Housing | 11 | 10 | 28 | 30 | 20 | |||||||
| Nebraska Investment Finance Authority | 11 | 13 | 32 | 34 | 10 | |||||||
| Nevada Housing Division | 8 | 9 | 29 | 36 | 18 | |||||||
| New Jersey Housing and Mortgage Finance Agency | 28 | 18 | 33 | 15 | 7 | |||||||
| New Mexico Mortgage Finance Authority | 3 | 2 | 12 | 36 | 47 | |||||||
| North Carolina Housing Finance Agency | 15 | 46* | N/A | 22 | 17 | |||||||
| Pennsylvania Housing Finance Agency | 17 | 13 | 28 | 23 | 19 | |||||||
| Rhode Island Housing | 6 | 10 | 32 | 30 | 22 | |||||||
| South Dakota Housing | 11 | 12 | 27 | 27 | 22 | |||||||
| Tennessee Housing Development Agency | 9 | 13 | 33 | 30 | 15 | |||||||
| Texas Department of Housing and Community Affairs | 18 | 18 | 39 | 25 | 0 | |||||||
| Utah Housing Corporation | 6 | 9 | 36 | 31 | 19 | |||||||
| Virginia Housing | 4 | 6 | 24 | 30 | 36 | |||||||
| West Virginia Housing Development Fund | 13 | 12 | 30 | 24 | 21 | |||||||
| Wisconsin Housing & Economic Development Authority | 22 | 18 | 33 | 27 | 0 | |||||||
| Wyoming Community Development Authority | 26 | 17 | 30 | 18 | 9 | |||||||
| *Includes 50%-79% of AMI. AMI--Area median income. N/A--Not applicable. Source: S&P Global Ratings HFA DPA Survey, June 2023. | ||||||||||||
Table 3
| Housing finance agency products | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Housing finance agency | Borrowers receiving DPA in 2017 (%) | Borrowers receiving DPA in 2022 (%) | Funding source(s) | Amount of DPA offered | Product terms | |||||||
| Arkansas Development Finance Authority | N.A. | 96-100 | General fund | Up to $15,000 | 10-year second mortgage, matching first mortgage | |||||||
| California Housing Finance Agency | 96-100 | N.A. | General fund; bond proceeds; other | Lesser of 3.5% (government loans) or 3% (conventional loans) of purchase price or appraised value | Deferred due on sale, refinance, or maturity second loan | |||||||
| Colorado Housing and Finance Authority | 50-59 | 96-100 | General fund; TBA premium; bond proceeds | 1. Up to lesser of $25,000 or 3% of first mortgage; 2. Up to lesser of $25,000 or 4% of first mortgage | 1. Grant; 2. Deferred due on sale, refinance, or maturity of first mortgage | |||||||
| Connecticut Housing Finance Authority | 50-59 | 90-95 | State budget allocations | 1. Minimum of $30,00 up to $20,000; 2. Minimum $3,000 up to $50,000 or $25,000 depending on location (limited time) | 1. 1% amortizing second mortgage; 2. 10-year 0% second mortgage forgiven 10% annually until year 10 (will drop to third mortgage if buyer also receives amortizing second) | |||||||
| D.C. Housing Finance Agency | 80-89 | 90-95 | TBA premium | Up to full amount of required minimum down payment | 1. 0% deferred non-amortizing loan due on sale, 30 years from closing date, refinancing, or property ceases to be principal residence | |||||||
| Georgia Housing and Finance Authority | 96-100 | 96-100 | General fund; bond proceeds; recovered Hardest Hit funds (in next 10 months) | 1. Up to $10,000 (Standard); 2. Up to $12,500 (protectors, educators, nurses, for family members living with a disability) | Deferred nonamortizing second loan due on sale, refinance, or maturity | |||||||
| Idaho Housing and Finance Association | 50-59 | 40-49 | General fund | Up to 7% of sales price | 7% second mortgage w/15-year amortization; 0% forgivable loan forgiven over time with 0.125% interest rate increase on first mortgage for every 0.5% of forgivable loan used | |||||||
| Illinois Housing Development Authority | 96-100 | 96-100 | General fund; Bond proceeds | 1. 4% up to $6,000; 2. 5% up to $7,500; 3. 10% up to $10,000; 4. $10,000; 5. $6,000 | 1. Forgivable second loan after 10-year amortization; 2. 0% second loan due on sale or refinance; 3. 0% second loan with 10-year amortization; 4. 0% second loan due on sale or refinance; 5. 0% forgivable second loan after five years | |||||||
| Iowa Finance Authority | 70-79 | 90-95 | Bond proceeds | 1. Up to 5% of purchase price; 2. $2,500 | 1. 0% second loan due on sale or refinance with higher first mortgage interest rate; 2. Grant | |||||||
| Kentucky Housing Corporation | 80-89 | 80-89 | General fund | Up to $10,000 | Second 3.75% mortgage w/10-year amortization | |||||||
| Maine State Housing Authority | 96-100 | 96-100 | State real estate transfer tax; general fund | 1. $5,000; 2. $10,000 for first-generation homebuyers | Grant | |||||||
| Massachusetts Housing Finance Agency | <40 | 40-49 | General fund; bond proceeds; federal/state grants | 1. Up to lesser of 10% of sales price or $30,000 (or $50,000 depending on property location) ; 2. Up to lesser of 5% or $15,000 of sale price | 1. 0% second loan due on sale, refinance or first mortgage paid off; 2. 2% second loan, amortizing over 15 years, or due on sale or refinancing | |||||||
| Michigan State Housing Development Authority | 96-100 | 96-100 | General fund; bond proceeds | Up to $10,000 ( in select zip codes), other zip codes up to $7,500 | 0% due on sale or refinance nonamortizing second mortgage | |||||||
| Minnesota Housing Finance Agency | 96-100 | 96-100 | Minnesota Legislature | 1. Up to $18,000; 2. Up to $16,500; 3. Up to $18,000 | 1. Interest rate equal to first mortgage, 10-year amortizing second mortgage; 2. 0% interest second mortgage due on sale, refinance, or first mortgage maturity; 3. 0% interest second mortgage due on sale, refinance, or first mortgage maturity | |||||||
| Missouri Housing Development Commission | 96-100 | 70-79 | General fund; TBA premium; bond proceeds | 4% of loan amount | 0% second loan forgivable after 10 years. If sold prior to 10 years, unamortized amount is due | |||||||
| Montana Board of Housing | <40 | 50-59 | General fund; bond proceeds | 1. 5% of sales price up to $15,000; 2. 5% of sales price up to $15,000 | 1. 15-year amoritizing second loan, same fixed interest rate as first mortgage; 2. 0% second loan due on sale, refinance, or payoff of first loan | |||||||
| Nebraska Investment Finance Authority* | <40 | 50-59 | Bond proceeds; recycled bond proceeds | Up to 5% of purchase price | 10-year second loan | |||||||
| Nevada Housing Division | 90-95 | 96-100 | General fund | $15,000 | Forgivable after three years (if staying in home) | |||||||
| New Jersey Housing and Mortgage Finance Agency | 80-89 | 96-100 | State budget allocation | Up to $15,000 | Interest-free, five-year forgivable second loan | |||||||
| New Mexico Mortgage Finance Authority | 96-100 | 90-95 | General fund; state housing trust funds | $7,000 | Second mortgage forgivable after 10 years | |||||||
| North Carolina Housing Finance Agency | 80-89 | 90-95 | General fund; bond proceeds | 1. $15,000 (for first-time homebuyers and military veterans); 2. Up to 3% of loan amount | 0% interest deferred second mortgage forgiven 20% per year at the end of years 11-15, complete forgiveness at end of year 15 | |||||||
| Pennsylvania Housing Finance Agency | <40 | 80-89 | General fund; bond proceeds | 1. $500; 2. Lesser of 4% of purchase price or market value or $6,000; 3. 5% of the lesser of purchase price or appraised value | 1.Grant; 2. 0% 10-year amortizing second mortgage; 3. Second mortgage forgiven by 10% annually for 10 years | |||||||
| Rhode Island Housing and Mortgage Finance Corporation | 60-69 | 96-100 | General fund; bond proceeds; funds from state and local fiscal recovery funds | 1. $17,500; 2. Lower of 6% of purchase price or $15,000; 3. $10,000; 4. $25,000 (first-generation homebuyer) | 1. Grant; 2. 15-year amortizing second mortgage with, in most cases, the same interest rate as the first mortgage; 3. 0% deferred second mortgage; 4 0% forgivable grant if homeowner keeps their home for five years as primary residence | |||||||
| South Dakota Housing Development Authority | 50-59 | 50-59 | General fund; bond proceeds | 3% or 5% of first mortgage loan | 0% due-on-sale or maturity second mortgage | |||||||
| Tennessee Housing Development Agency | 96-100 | 96-100 | Bond proceeds; DPA recoveries | 1. $6,000; 2. 6% of sales price | 1. 0% due on sale, refinance, or maturity second mortgage; 2. 30-year amortizing second mortgage (same interest rate as first mortgage) | |||||||
| Texas Department of Housing and Community Affairs | 96-100 | 96-100 | Bond proceeds; TBA premium | 3-4 points of loan value | 0% subordinante loan, 3% or five-year forgivable, or 30-year repayable terms due on sale, refinance, or repay | |||||||
| Utah Housing Corporation | 96-100 | 96-100 | General fund, other | 1. Up to 6% of first mortgage amount; 2. Up to $20,000 (First-time homebuyers); 3. Up to $2,500 (Veterans); 4. Up to 3.5% of purchase price, not to exceed $25,000 | 1. 30-year amortizing fixed-rate second mortgage (2% higher than first mortgage); 2. 0% due on sale or refinance second mortgage; 3. Grant; 4. Interest- free, forgivable grant forgiven over five years (a portion forgiven each year employed as law enforcement officer in Utah) | |||||||
| Virginia Housing Development Authority | 40-49 | 96-100 | General fund | 1. Up to 5% of purchase price; 2. Up to 2.5% of lesser of sales price or appraised value | 1. 30-year amortizing second mortgage; 2. grant | |||||||
| West Virginia Housing Development fund | 90-95 | 80-89 | General fund | Up to $10,000 | 15-year fixed-rate second loan (current rate is 2%) | |||||||
| Wisconsin Housing & Economic Development Authority | 70-79 | 80-89 | General fund; Capital Magnet funds | 1.Up to 6% of purchase price; 2. $7,500 | 1. 10-year fixed-rate second mortgage (interest rate same as first mortgage), monthly payments; 2. 0% 30-year fixed-rate mortgage, no monthly payments | |||||||
| Wyoming Community Development Authority | 60-69 | 70-79 | Bond proceeds; other | 1. Up to $15,000; 2. Up to $15,000 | 1. 0% second due on sale, refinance, or 30-year maturity second loan; 2. 10-year fixed-rate fully amortizing second loan | |||||||
| N.A.--Not available. DPA programs offered and/or administered by HFA. Source: S&P Global Ratings HFA DPA Survey, June 2023; S&P Global Ratings HFA survey, fourth-quarter 2017; National Council of State Housing Agencies State HFA Factbook: 2017 NCHSA Annual Survey Results; company reports. | ||||||||||||
This report does not constitute a rating action.
| Primary Credit Analyst: | Jessica L Pabst, Englewood + 1 (303) 721 4549; jessica.pabst@spglobal.com |
| Secondary Contact: | Marian Zucker, New York + 1 (212) 438 2150; marian.zucker@spglobal.com |
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