Breaking barriers: The down payment assistance revolution

To address one of the largest barriers faced by first-time homebuyers, Freddie Mac has introduced an innovative platform for housing professionals called DPA One®. Launched in September 2023, this platform streamlines the often frustrating and confusing process of searching for and matching down payment assistance (DPA) programs. Recently, the team behind DPA One shared insights into their dedication to making homeownership more accessible and their vision for the platform’s future. 

Freddie Mac’s DPA One was developed with a clear mission: to simplify the often complex and fragmented landscape of down payment assistance. Traditionally, DPA programs have been associated with first-time homebuyers struggling to save for a down payment. In recent years, however, DPA programs have evolved to address the needs of a changing market and economy. With macro-economic pressures, inflation impacting renters’ ability to save for a downpayment, and shifting savings habits across socio-economic backgrounds, these programs have become essential for many borrowers to achieve homeownership, whether it is their first home or their third. 

By centralizing information on DPA programs and presenting them in one consistent format, DPA One aims to remove the confusion of varying eligibility requirements (both state and borrower specific) that often accompany DPA products. This user-friendly platform is designed to be a one-stop shop for housing professionals, making it easy to match a borrower’s needs to opportunities for financial assistance. 

DPA One key features and benefits

1. Comprehensive Information 

• Provides detailed information on state, local and municipal DPA programs nationwide. 

• Helps lenders identify suitable options for clients quickly. 

2. Easy, Intuitive Navigation 

• Reduces the time and effort required for understanding program offerings. 

• Provides timely access to financial resources in a competitive housing market. 

Benefits for Loan Originators Using DPA One 

1. Seamless Experience 

• Provides an intuitive interface for easy navigation and use. 

• Allows quick search and identification of suitable DPA programs. 

2. Efficiency and Speed 

• Enables access to comprehensive program details with just a few clicks. 

• Streamlines understanding and navigating the application process, saving time and effort. 

3. Enhanced Client Satisfaction 

• Provides timely and accurate assistance options. 

• Improves overall client satisfaction with efficient and effective service. 

Collaborative Development 

The team behind DPA One consists of experienced professionals who are passionate about supporting lenders and loan originators in their efforts to help more people achieve the dream of homeownership.“ Our goal was to create a tool that not only benefits homebuyers but also provides valuable support to lenders and loan originators,” said Sandeep Kaur, Senior Project Manager, Freddie Mac Single-Family. The team has spent countless hours researching, developing and refining the platform to ensure it meets the needs of its users effectively. 

One of the standout aspects of DPA One is its collaborative nature. The Freddie Mac team has worked closely with lenders, housing finance agencies and other stakeholders to develop a platform that truly addresses the needs of the industry. “We’ve had tremendous support from our partners and their feedback has been invaluable in shaping DPA One,” Sandeep Kaur shared. This collaboration ensures that the platform is not only user-friendly but also comprehensive in its coverage of available programs. 

DPA One Market Impact and Reach 

The impact of DPA One is already being felt in the industry. Currently, over 4,400 loan originators are finding it easier to connect clients with the financial resources necessary for purchasing a home. The platform’s streamlined approach not only saves time but also enhances the overall experience for both lenders and their customers. By reducing the complexity associated with down payment assistance, DPA One is making homeownership more attainable for many prospective borrowers. 

Freddie Mac’s commitment to the success of DPA One is evident in their ongoing efforts to expand and improve the platform. The team is rapidly scaling to incorporate more DPA programs into the system, recognizing the diverse range of assistance available across different states and municipalities. “We want to include as many DPA programs as possible to ensure that every potential homebuyer has access to the assistance they need,” Sandeep Kaur emphasized.  

Freddie Mac’s DPA One is a significant step forward in the effort to make homeownership more accessible and affordable. The platform’s innovative features, combined with the dedication and expertise of the Freddie Mac team, ensure that it is a valuable resource for industry professionals and the homebuyers they serve. As the platform continues to grow and incorporates more DPA programs, its impact is set to increase, helping more first-time buyers achieve their dream of owning a home.  

Lenders and loan originators currently offering DPA products should adopt the DPA One platform immediately. Those who have avoided DPA products due to the complex and confusing program guidelines can now simplify the process with DPA One, expanding their portfolio and driving business growth and profitability. In their mission to support homeownership across the nation, this platform demystifies down payment assistance, making it accessible and manageable for all. Additionally, DPA One offers all of these services free of charge. 

For DPA program administrators interested in adding their programs to DPA One, Freddie Mac welcomes your collaboration. The team is constantly searching for inroads to create a more inclusive and supportive housing market, ensuring that financial barriers do not stand in the way of homeownership. Participation in DPA One offers significant benefits to DPA providers, ensuring information is efficiently delivered through one centralized mechanism, resulting in reduced submission errors and program requirement questions from housing professionals. It also provides visibility into other programs, which allows providers to compare offerings in a competitive landscape. 

For more information about DPA One®, visit DPA One® by Freddie Mac.