The down payment myth still keeping buyers on the sidelines

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“When you get into that kind of first-time homebuyer number, that handholding is something that we really pride ourselves on,” he said. “Anytime you’re going to go drop $500,000 on your first home, it’s a scary moment, and our originators don’t take that lightly. They go into that conversation detailed, explaining every part of the process.”

Ospina pushed back on the idea that affordability concerns have scared off first-time buyers.

“I don’t believe that the demand for a first-time homebuyer to get into a home has waned one bit,” he said. “Getting into a home far outweighs renting in most cases, and these people understand that owning a home and building equity sooner rather than later is a safe bet. By the time you’re done with that mortgage, you will have equity, whereas with renting, you’ll have none of that.”

Breaking the myth

Down payment assistance is a major part of how SimplyPMG turns that demand into closed loans, according to Ospina. He said the company tracks usage closely because it shows how much business depends on buyers simply knowing the option exists.

“Last quarter, 30% of our first-time homebuyers used some form of DPA,” he said. “And of that 30%, about 50% of it used that DPA as a forgivable grant, so they were getting into these homes where the down payment is forgiven.”

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