Freddie Mac’s DPA One Website Offers Free Tool to Find Local Down Payment Programs
Freddie Mac Launches DPA One Website to Help Homebuyers Find Down Payment Assistance Programs
In a groundbreaking move, Freddie Mac has expanded its down payment assistance website, DPA One, to include California, offering consumers a free tool to find local down payment programs. The website, which originally launched on October 16, now features 80 down payment assistance programs to help California home shoppers.
According to Freddie Mac, the down payment on a home is often the biggest hurdle for first-time buyers. With the high cost of housing in California, many potential homebuyers struggle to come up with the necessary funds to make a down payment.
DPA One aggregates down payment assistance programs in a single, standardized tool, allowing lenders to access and compare programs easily. The website provides search results based on various criteria, such as sales price, household income, and credit score, to help homebuyers find the right program for their needs.
While DPA One offers a valuable resource for homebuyers, there are some limitations to be aware of. For example, users can only compare a maximum of three programs side by side, even if there are more programs available. Additionally, some of the questions on the website may be confusing for consumers, such as the difference between annual household income and annual qualifying income.
Despite these limitations, DPA One represents a significant step for Freddie Mac in providing consumer-facing products. By offering a tool to help homebuyers find down payment assistance programs, Freddie Mac aims to make homeownership more affordable and reduce settlement charges for consumers.
In addition to DPA One, there are other resources available for homebuyers seeking down payment assistance, such as Down Payment Resource. With 370 homebuyer assistance programs currently active and funded in California, Down Payment Resource offers a comprehensive database of programs for consumers to explore.
Overall, consumers searching for down payment assistance programs are advised to work with a mortgage loan originator who understands the program limitations and nuances. By partnering with an experienced professional, homebuyers can navigate the complexities of the homebuying process and find the right assistance program for their needs.
In mortgage rate news, the 30-year fixed rate averaged 6.66%, while the 15-year fixed rate averaged 5.87%. The Mortgage Bankers Association reported a 9.9% increase in mortgage applications compared to two weeks ago.
For well-qualified borrowers, fixed-rate mortgages are available at competitive rates, including a 30-year FHA at 5.5% and a 15-year conventional at 5.375%. With the housing market continuing to evolve, it’s essential for homebuyers to stay informed and explore all available resources to make informed decisions about their home purchase.