As a high-producing real estate professional, you understand the importance of empowering your clients with knowledge and resources to make homeownership a reality. Yet, many buyers—and even some agents—overlook one of the most powerful tools available to first-time homebuyers: Down Payment Assistance (DPA).

Despite its proven ability to help buyers close deals, DPA programs remain significantly underutilized. Recent data reveals a stark disconnect: while 83% of first-time FHA borrowers in the nation’s largest metro areas qualify for DPA, only about 42% of FHA borrowers actually utilize it. That means more than half of eligible buyers are leaving this financial lifeline on the table, often because they simply don’t know it exists.

Every missed opportunity to leverage DPA is potentially a deal lost for you and your clients. Many buyers walk away from initial consultations with loan officers feeling defeated, convinced they can’t afford the upfront costs of homeownership. By educating your clients on DPA options, you can turn "not enough for a down payment" into "let’s find your dream home."

Rob Chrane of Down Payment Resource (DPR) puts it succinctly:

“There has to be a huge gap between the borrowers who received some sort of help with their down payments and those who could have gotten help had they known it was available.”

The U.S. Department of Housing and Urban Development’s latest quarterly report sheds light on how FHA-insured mortgages perform:

• 212,000 forward mortgages were endorsed in the last quarter, representing $65.5 billion in loans.

• Nearly 165,000 purchase loans went to first-time homebuyers, including 52,000 minority households.

• Average credit scores for FHA loans held steady at 677, with a significant portion of borrowers carrying debt-to-income (DTI) ratios over 50%.

While the FHA continues to serve as a vital pathway to homeownership, the report also underscores the financial challenges faced by today’s borrowers.

The Urban Institute advocates for a more robust and inclusive national DPA program that expands eligibility, particularly for low-income and first-generation buyers. Such initiatives could help break down barriers for underserved communities while addressing racial equity gaps in homeownership.

As a top-performing real estate agent, you’re in a unique position to amplify this message. Consider these strategies to educate and engage your clients:

1. Incorporate DPA into Buyer Consultations: Make down payment assistance a core part of your conversations with prospective buyers.

2. Collaborate with Lenders Who Specialize in DPA: Partner with mortgage professionals who are well-versed in available programs to ensure clients receive accurate and actionable advice.

3. Share DPA Success Stories: Use testimonials and case studies to show how DPA can transform the buying process.

4. Create Targeted Content: Regularly update your blog, social media, and email campaigns with DPA resources and tips tailored to your market.

By equipping your clients with the knowledge of down payment assistance, you’re not just facilitating a sale—you’re making homeownership possible for families who might otherwise be left behind. Let’s bridge the gap together and ensure no eligible buyer is turned away for lack of awareness.