Noah Launches Down Payment Assistance to Empower First Time Home Buyers

Home Buying By Sahil Gupta - December 8, 2021

A New Path to Homeownership

Even with historically low interest rates and a strong desire to become homeowners - millions of potential buyers find themselves stuck at the starting line. Why? Rising home prices have made housing increasingly unaffordable, particularly as 20% down payments become the norm. This has left the current generation of buyers to choose between:

  • Delaying their homeownership dream: A recent Zillow study showed that it would take the average renter 25 years to save 20% down at their current savings rate.
  • High debt burden and monthly payments: Buyers are opting for high LTV mortgages with large monthly payments and PMI to get into homes, resulting in record debt levels on consumer balance sheets.

With these limited options, buyers end up compromising and losing out on their dream home, moving away from family, or feeling cash poor after a home purchase. The start of your homeownership journey should be exciting, aligned to your timeline, and not leave you cash-strapped for unexpected expenses. 

In contrast, what if the path to homeownership started with a long-term partner who shares in the ups and downs of the journey with you? NAR reported that 66% of Millennial and Gen-X buyers need help with their down payment for a home purchase, and we’re ready to help.

Announcing Noah Down Payment Assistance

We’re excited to announce our newest offering: Down Payment Assistance. At Noah, we want to empower first time home buyers by helping them overcome the biggest barrier to homeownership or purchasing the home they love - reaching the 20% down payment. 

Noah’s DPA program helps home buyers purchase their dream home by contributing to their down payment funds to reach the 20% threshold (or beyond). In fact, Noah can contribute up to 75% of the funds towards a down payment at the time of purchase. In exchange for providing the down payment funds, Noah will share in a portion of the future upside or downside of the home’s value. We believe that homeowners should build wealth through homeownership and therefore Noah’s share of the future home appreciation will always be lower relative to our contribution to the down payment.

A Decade of Financial Freedom

Noah’s DPA program provides up to 75% in down payment funding with no monthly payments, enabling potential buyers to:

  1. Make a Stronger Offer
    To compete and win this homebuying season, 20% down is often a minimum as sellers tend to consider those to be a stronger offer and more likely to close.
  2. Access Lower Mortgage Rates and Reduced Monthly Payments
    Making a 20% down payment often qualifies a buyer for better interest rates. Small improvements in rates have a big impact:  A 0.50% difference on a 30 year fixed rate mortgage can save thousands of dollars each year.
  3. Avoid PMI payments completely
    Down payments of less than 20% require private mortgage insurance (PMI), adding to the monthly payments burden. PMI can reach 2.5% or more in expensive markets on an annual basis denting a buyer’s affordability.
  4. Improve Purchasing Power to Buy a Home They Love 
    A larger down payment with Noah’s help means they can afford to purchase a larger home with the same monthly payments - a home that better fits their families’ needs, as well as live in a desirable school district without exhausting their savings.

Recently, Harvard reported that Down Payment Assistance programs such as Noah would enable approximately 6.6 million additional households to become homeowners. For context, that would double the total volume of homes purchased in the US, which is exactly the type of impact we’re looking to have with our DPA program. We recognize that in certain high demand markets, home prices tend to be higher, so we’re offering up to $500,000 in down payment funds from Noah to ensure everyone can build wealth through homeownership. 

Own Your Dream Home Today

If you are a potential home buyer interested in Noah’s Down Payment Assistance program, learn more here. 

Once you reserve your spot by filling out the inquiry form, one of our experienced Home Advisors will get in touch with you and schedule a call to discuss the program

We’re excited to share this news and look forward to helping this year’s home shoppers become successful home owners!