Down payment assistance programs can save homebuyers an average of $17,766 during the life of a loan, according to a joint report from RealtyTrac and Down Payment Resource.
Those savings break down on average to $5,965 for the down payment for a median-priced home and $11,801 for the monthly house payments over the course of a loan's life. The money saved represents roughly 41% of a year's wages when compared to buyers that don't use down payment assistance, the report released Thursday, which studied 513 counties across the country, noted.
On average, the amount of assistance provided from down payment assistance programs across the country was $12,434, or almost double the average 3% down payment on a median-priced home. In 18% of counties though, down payment assistance fell short of the 3% down payment, including counties in the New York City, Washington, D.C., Salt Lake City and Baltimore metropolitan areas.
In some markets, the savings offered by these programs, versus not participating, can be quite substantial. The biggest possible savings were found in Kauai County, Hawaii, where homebuyers can save $80,148 over the life of a loan when compared with not participating in a down payment assistance program. Other markets with total savings of more than $50,000 over the life of the loan included counties in the Los Angeles, San Francisco, Miami, New Orleans and Seattle metropolitan areas.
