Clients should know that their down payment doesn’t have to come solely from savings.

Did you know that roughly half of surveyed would-be homeowners say that they can’t afford a down payment? This figure represents first-time homebuyers as well as those who have owned a home in the past but don’t currently.

But, as you may be well aware, savings aren’t necessarily the only thing that goes into a down payment. Down payment programs can mean the difference between becoming a homeowner and renting perpetually for hundreds of thousands of borrowers all across the nation.

That’s because, today, there are thousands of down payment programs on the market. According to recent counts, that number comes to more than 2,300.

That’s a lot of opportunities to help your clients out in their journey to homeownership!

The problem is that many borrowers may be unaware that down payment programs exist, how they work, or how to find them. Many of these clients are anxious about saving thousands of dollars for a down payment. Others certainly believe that homeownership is outright unattainable.

That’s why it may be critical to talk with your clients about potential down payment programs. By taking the time to answer their questions, you can ease anxieties, bolster trust, and even promote borrower education.

Ready to lend a helping hand? Let’s dive into some of the most common borrower questions surrounding down payment programs and their comprehensive answers:

“What are Down Payment Programs?”

Of course, this is probably the first question you’ll get.

Start simple with a clear definition. Here’s a sample script you can use:

“Down payment programs, also called “down payment assistance programs” which are also sometimes called “first-time homebuyer programs,” are programs aimed at making homeownership more affordable and attainable. They might include special grants or forgivable or no-interest loans to cover the down payment. They are usually provided by state or local entities but might also be offered by nonprofits or even certain employers. Remember: their overall goal is to make homeownership more affordable and accessible, so they tend to be favorable to borrowers.”

“Who Can Use Down Payment Programs?”

Once your clients are clear on the definition, it’s time to dive into the mechanics.

Start by explaining that each down payment program is unique, but common demographic qualifiers you’ll want to cover in depth with them may include:

• First-time buyers. Clarify that this is usually defined as anyone who hasn’t owned a home within the last three years.
• Qualifying groups, which might include teachers, law enforcement officers or other first responders, or government employees.
• Eligible repeat buyers, in certain cases.

 You’ll probably have a sense if the buyer might be a fit, so make your professional determination and proceed from there.

“Is a Down Payment Program Right for Me?”

If the client fits into a bucket that you know might qualify them for down payment assistance—say, they’re a first-time buyer—then that’s great! Give them the potential good news and get to work finding the right program for the job.

If the case is a little grayer, you might want to press pause while you complete some research.

Choose a clear date and time to follow up and stick to it. Be extra careful not to promise anything before you have all the facts!

If it turns out that there are no qualifying programs for this borrower, you’ll need to break the news in an honest, empathetic way. Here’s a sample script you can use:

“Unfortunately, it doesn’t look like down payment programs are a possibility in this case. Let’s explore other avenues that may still make homeownership more attainable…”

Perhaps that’s improving their credit score or tweaking their budget to increase savings amounts.

“How Can I Find Down Payment Programs?”

Here, you’ll want to explain that a home finance professional (like you) is usually their best bet for finding relevant, legitimate down payment programs.

But if a borrower still wants to do some research on their own time, you can share some solid resources.

That list might include:

• The website for the Housing Finance Agency (HFA) in your state.
• The website for their city.
• The website for their county.
• The website for the U.S. Department of Housing and Urban Development (HUD).
• Any private companies that you’ve worked with and trust to aggregate reliable, legitimate down payment programs.

At this point, it might also be a good idea to remind borrowers of warning signs of financial scams. These include urgent sales tactics, requests for immediate wires, and more.

Final Thoughts: Down Payment Programs

Saving up for a down payment can seem like a huge obstacle for some homebuyers. That’s why it’s so important to share all the potential options with your clients—including detailed information on down payment programs.

By answering borrowers’ questions related to down payment programs thoroughly and compassionately, you can ease anxieties, bolster trust, and even promote borrower education. Talk about a win-win-win!

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