Starting Thursday, homebuyers can scout down payment assistance programs on Redfin listings, thanks to the brokerage’s new partnership with Down Payment Resource.
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As home prices and mortgage rates continue their rapid ascent, buyers are clamoring for all the financial help they can get.
With that in mind, Seattle-based online real estate brokerage Redfin has partnered with Down Payment Resource to display down payment assistance programs on its U.S. for-sale listings.
“Nearly half of Americans who have never owned a home say that saving money for a down payment is a barrier to homeownership, and many young people in particular feel like they’ll never be able to own a home,” Redfin Chief Growth Officer Christian Taubman said in a press release. “Down payment assistance programs can make homeownership more attainable, but information about them is often fragmented and hard to understand.”
“We saw a big opportunity in partnering with Down Payment Resource to raise awareness about these programs to help more people become homeowners,” he added.
Eligible listings will display state and local down payment assistance programs underneath Redfin’s payment calculator, which breaks down monthly housing costs. After clicking ‘see available programs,’ homebuyers can scroll through a list of options and how much money they could receive from each.
If interested, homebuyers are then prompted to complete a short questionnaire that asks for their household size, current homeownership status and annual pretax income alongside several more demographic questions, such as their military or disability status.
From there, they’ll receive a final list of application links to the programs they’re eligible for.
Down Payment Resource CEO Rob Chrane said his company’s partnership will go a long way in helping homebuyers accelerate their buying plans with better mortgage terms, thanks to higher down payments.
“With thousands of assistance programs available across the country, many Americans may be able to afford homeownership sooner than they realized,” he said.
While partnerships with Redfin and Zillow highlight the work the company does for homebuyers, DPR also has an expansive education platform for real estate agents and other professionals. DPR, which Chrane founded in 2008, maintains a database of 2,200 down payment assistance programs that can be accessed through integrations with multiple listing services (MLSs), lenders and agents.
“Our research shows that one in three declined mortgage applications are denied for reasons that could be addressed with homebuyer assistance, which underscores the critical need to increase awareness about these life-changing programs,” Chrane said of the importance of the partnership. “Partnering with Redfin is a great way to get information about financial support into more consumers’ hands.”
In addition to adding down payment assistance resources to its website, Redfin said it has been working to improve homeownership rates through closing grants, housing counseling sessions, funding for domestic and foreign affordable housing developments and several other initiatives.