By comparison, the same borrower who needed to save 3% of the purchase price would require two and a half years (31 months) to save that amount.
Read More: Home purchase applications hit 28-year low
“For those who can afford higher rent payments but have been held back by the upfront costs associated with homeownership, down payment assistance can help to lower the barrier to entry and make the dream of owning a home a reality,” Orphe Divounguy, senior macroeconomist at Zillow Home Loans, said in a press release. “The rapid rise in rents and home values means many renters who are already paying high monthly housing costs may not have enough saved up for a large down payment, and these types of programs are welcome innovations in lowering the potential barriers to homeownership for those who qualify.”
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