Mortgage Connects an MGIC Podcast

Boosting affordability through down payment assistance programs

• MGIC MI • Episode 44

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MGIC’s Concepcion Guerrero sits down with Angel Romero, Housing Finance Agency Relationship Manager at Down Payment Resource (DPR), to discuss the role down payment assistance programs (DPA) play in helping more families become homeowners. 

With over two decades of mortgage industry experience and a personal journey from foster care to homeownership, Romero brings unique insights to the conversation about housing affordability. In this episode, we discuss: 

  • Trends from DPR’s recent Homeownership Program Index, including the growing number of DPA programs nationwide 
  • How to layer down payment assistance for maximum affordability 
  • The importance of early financial education 
  • How to harness DPA programs as a loan officer 

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Concepcion Guerrero:

Welcome to Mortgage Connects by MGIC, bringing you the latest insights from top mortgage professionals around the industry. I'm your host, concepcion Guerrero, and joining me today is Angel Romero, housing Finance Agency Relationship Manager at Down Payment Resource. She has over two decades of experience in the mortgage industry and is a skilled communicator and strategic thinker. In her position at Down Payment Resource, angel is responsible for building and maintaining relationships with state and local housing finance agencies across the nation. Her strategic approach and deep industry knowledge contribute to the success of Down Payment Resource in providing valuable resources and support to agencies involved in housing finance. Angel, welcome, glad to have you join us today.

Angel Romero:

Thank you, Concepcion, I'm so glad to be with you Now.

Concepcion Guerrero:

Angel, you joined down payment resource, or DPR, in March of 2023. So can you start by telling us about what does DPR do and who do they help?

Angel Romero:

Absolutely. Down payment resource, or DPR, is all about bridging the gap between homeowners and the down payment assistance programs that can help make homeownership more affordable. We track and maintain the most comprehensive database of homeowner assistance programs across the country, everything from down payment and closing costs to mortgage credit certificates and affordable first mortgages. We work with lenders, real estate professionals, mlss and even state and local housing finance agencies to connect eligible buyers with these programs. So many people think they need 20% down to buy a home, and that is a misconception that keeps far too many renters on the sidelines. Our goal is to change the narrative by making down payment more visible and accessible for everyone, from first-time home buyers to repeat buyers, who might not even realize they qualify.

Concepcion Guerrero:

Now, Angel, in my role, I get the opportunity to travel to many conferences and I've noticed DPA being a topic of conversation amongst realtors, mortgage lenders and even homebuying counselors. So what are you hearing from lenders, realtors you're engaging with, when it comes to down payment assistance?

Angel Romero:

It's actually been really encouraging to see DPA gaining more traction in the industry. Lenders and real estate professionals are realizing the affordability challenges are real and down payment assistance is one of the most effective tools we have to address them. That said, there are two main things I hear over and over again. First, many lenders want to offer DPA but are unsure where to start. Let's not boil the ocean. There's a perception that these programs are complex or hard to integrate into their process. The good news is that's just not the case. There are so many options out there that fit seamlessly into conventional FHA, va and USDA financing. Second, real estate agents are hungry for more education. They see the impact of affordability challenges every day, but many don't realize how accessible these programs are. They want to know how can I help my buyers compete in today's market using DPA? That's where DPR comes in. We help provide clarity and confidence so that lenders and agents can leverage these programs as tools to grow their business and serve more homebuyers Now.

Concepcion Guerrero:

DPR has created a database of every homebuyer and down payment assistance program in the country and I like to refer to DPR as the matchcom of all DPA programs. Matchcom of all DPA programs. Can you tell us how loan officers and real estate agents are leveraging the DPR tools to help more buyers into homes?

Angel Romero:

Absolutely. I love that comparison Concepcion. Dpr really is like a matchmaking service for home buyer assistance programs to home buyers, lenders and real estate agents use our tools in a few key ways. Loan officers integrate DPR tools into their process to instantly identify which DPA programs a borrower may be eligible for right at the point of loan application. This allows them to structure deals more effectively and, in many cases, turn a not yet into a yes for homebuyers who are short on down payment funds.

Angel Romero:

Real estate agents leverage our tools to market listings with eligible assistance programs and educate buyers earlier in their journey. Many of them are using DPR-powered MLS integrations to highlight properties that qualify for assistance, giving them a competitive edge when working with first-time or lower down payment buyers. Mortgage and real estate professionals use DPR to train their teams, integrate DPA into their business strategy For example, we've done an integration into Encompass and they can even use our tools for marketing campaigns that attract buyers who need down payment help. At the end of the day, it's all about removing barriers and expanding homeownership opportunities. If there's an available resource that can help someone get into a home sooner, why not utilize it? I love that.

Concepcion Guerrero:

Now, earlier this year, DPR published their Home Ownership Program Index, or their HPI report that is produced every quarter, where the latest trends in down payment assistance programs are highlighted. In the latest report it explained a continued rise in the number of available homebuyer assistance programs and how there are now 22 new DPA programs, totaling over 2,460, which is the highest ever recorded. Can you elaborate on some program trends highlighted in the latest report? Sure.

Angel Romero:

Definitely, and this is one of the most exciting trends we're seeing. Dpa is growing, not shrinking, despite rising home prices and affordability challenges. More programs are being introduced to help bridge the gap. A few key trends from the last report more state and local level programs. We're seeing state HFAs, cities and counties step up with new assistance programs tailored to their specific housing markets. This is critical because home prices and affordability challenges vary so much by region. We're seeing higher income limits.

Angel Romero:

Many programs are expanding their eligibility criteria, making them more accessible to more middle-income households. Some even allow 120 to 140 percent of the area median income, which is a big shift from the past. We're seeing increased employer participation. We're also seeing more employers partner with housing agencies to offer DPA as a benefit to their employees. This is a creative way to help essential workers like teachers, health care workers, first responders, and it helps them to be able to live closer to where they work. We're also seeing more layering opportunities. More buyers are using multiple assistance programs together, such as stacking a state HFA grant with a local DPA loan to maximize affordability. The key takeaway down payment assistance is evolving to meet today's market challenges. It's not just for low-income or first-time homebuyers anymore. There are opportunities for a broad range of homebuyers, and that's the message that we need to keep getting out there.

Concepcion Guerrero:

That's great, great insights. I do encourage all of our listeners to take a read at the latest reports to learn more of what Angel just mentioned. Now, angel, before DPR you served as the Assistant Vice President, post-closing Manager and Resident Housing DPA Program Expert at Cherry Creek Mortgage, where you played a pivotal part in driving the company's expansion into the underserved markets. Tell me how do DPR's tools help you reach new markets and provide essential support to homebuyers?

Angel Romero:

My time at Cherry Creek really solidified my passion for down payment assistance and its role in expanding homeownership opportunities. One of the biggest challenges we faced was ensuring that our loan officers had access to the right tools and knowledge to confidently work with down payment assistance programs. That's where DPR made a huge difference. By integrating DPR's tools, we were able to quickly identify which assistance programs were available for our borrowers. This removed huge barriers because, instead of assuming a borrower didn't have enough funds to buy, we could say wait a minute, let's see what programs you qualify for. It completely shifted the conversation from you don't have enough savings to here's how we can make this work, no-transcript, and that made all the difference.

Concepcion Guerrero:

Now, Angel, I want to switch gears and get a little bit personal now. You've mentioned it was years of you working in the industry until you finally realized that the dream of becoming a homeowner for you was a possibility. Tell me a bit about your journey and the moment that you realized homeownership was attainable.

Angel Romero:

This is such a meaningful topic for me Concepcion. For years I worked in the industry helping others achieve homeownership, but I didn't see not truly see myself as a home buyer. I grew up in the foster care system and owning a home wasn't a conversation that was had. For me, security was having a long-term job or career and being able to provide for my family. The moment everything changed for me was when I was sitting at a closing table with a new home buyer that said to me I grew up in foster care and I never thought I'd be able to buy my own home.

Angel Romero:

It was an instant mindset shift and it wasn't until I educated myself, the way that I now educate others, that I realized homeownership isn't just for people who have everything figured out financially. It was for people like me, people who had stable income, were paying their rent every month but needed that extra push. I remember the moment when I finally closed on my home. There was this overwhelming feeling of I did it. I accomplished it. But also right behind that was this thought of why did it take so long? It made me even more passionate about making sure that others don't count themselves out before they even explore all the possibilities.

Concepcion Guerrero:

Thank you for sharing that, Angel. Definitely an aha moment.

Angel Romero:

Yes it was my aha.

Concepcion Guerrero:

Now, education has always been a huge part of your life, where you've made it a goal to educate your foster children and on the importance of homeownership, while having them see it as a possibility, like you just mentioned. What are some things that you encourage your children to do to help them become homeowners and maintain that financial stability?

Angel Romero:

So this again. You know education is such an important thing to me Concepcion it's incredibly important. I always told my children biological, foster children alike that homeownership isn't just about having a place to live. It's about building stability, planting roots and generational wealth. It's about building stability, planting roots and generational wealth. A few key things that I encouraged them to do was understand credit early. I've seen so many young adults struggle simply because they didn't understand how credit works.

Angel Romero:

I worked to teach my children how to build credit responsibly, paying bills on time, keeping credit credit their utilization low and working to avoid unnecessary debt. A big thing, I would say to them. Save with a purpose, even if it's just a little at a time. I encourage them to start saving early, whether it's for a down payment or an emergency fund or future homeownership expenses, because we know homeownership isn't just about buying, it's about maintaining, and that's important for children to know and know their resources. I made sure that they know they don't have to do it alone.

Angel Romero:

There are all of these down payment assistance programs out there to help buyers. Many of the same programs that I work with at DPR could help and did help when the time came for them to purchase a home and, lastly, think long-term Home ownership's a commitment, and I encourage them to think beyond just buying the house. You want to keep your house Budget planning, making sure that you put that money back for repairs Again. Leverage DPA on the front end so the money that you've taken time to save can be utilized when something comes up with your home or in your financial world. And I wanted to make sure that they stayed financially educated, because it's all part of the process. At the end of the day, I wanted them to see homeownership as something that would always be within reach, not something reserved for other people. That's the mindset shift that changes everything.

Concepcion Guerrero:

I love that, Angel. I know I'm taking down notes and taking good nuggets and tips for my children as well. Start them young. Yes so, angel. The last question we talked about various DPR tools available for mortgage professionals, but where can they go for additional information on down payment resource?

Angel Romero:

Great question, Concepcion. The best place to start is downpaymentresourcecom. Their homebuyers can check their eligibility for down payment assistance, and industry professionals lenders, real estate agents, housing counselors can learn how to integrate DPR tools into their business. For more mortgage professionals specifically, we have resources, training and integration options that make it easy to incorporate DPR and down payment assistance into everyday lending practices. And for homebuyers, we have a free online tool where they can enter some basic information and see what programs they might qualify for. And, of course, if anyone wants to reach out directly, we are always happy to help. You can email info at downpaymentresourcecom. We love talking about down payment assistance and making homeownership more accessible.

Concepcion Guerrero:

Thank you very much for your time today. It was a pleasure getting to chat with you.

Angel Romero:

It was great to be with you, Concepcion. Thank you again for having me.

Concepcion Guerrero:

Now, that brings us to the end of this Mortgage Connects episode. For a recap of this episode and quick access to related content, visit MortgageConnectscom and, while you're there, subscribe to our email alerts so you'll be among the first to know about new episodes. Thank you for tuning in.