Low to moderate income families were unable to buy homes, or even condos in most cases before downpayment assistance and 100-percent (and 103, 105 and 107-percent) financing programs came into existence. Unfortunately, paying 20-percent down, or even 10-percent down isn't a viable option for some. Families who couldn't afford to pay anything down used to rent, but fortunately that's changed due to downpayment assistance and 100-percent financing programs.

A study conducted by the Milken Institute and sponsored by the Nehemiah Corporation of America, a downpayment assistance program provider, showed quite a few interesting findings when it comes to downpayment assistance (it does not say whether or not it included 100-percent financing mortgage options as downpayment assistance, however, people who may not be eligible for downpayment assistance are often eligible, in many cases, for a mortgage loan that finances the purchase price of the home, including closing costs, 100-percent or more).

Here are the study's findings, as recently reported by RisMedia.com:

* Over the last 12 years, homes prices have risen 30 percent faster than wages and salaries for low- to-moderate income families, creating a growing “homeownership affordability gap.” This gap is making it increasingly difficult for lower-income families to purchase a home without down payment assistance.

* Anecdotally, DAP homeowners report much greater economic flexibility and stability that leads to more productive and happier lives, and rebuilt communities.

Downpayment assistance programs are wonderful for those who are unable to pay anything down when buying a home and who are unable to qualify for a 100-percent, or greater, conventional mortgage loan. In most cases, today, there's always a way to buy a home, if you know the many methods of doing it.

-John Mudd
"Mr. Real Estate"