Are borrowers who use down payment assistance more likely to default?
Simply put, No. On average, buyers who use down payment assistance are able to keep more funds in reserve and are therefore less likely to default on their mortgage payments. It has been reported that Experian, a leading national credit reporting firm did a study on down payment assistance and found that overall default rates of buyers using down payment assistance were no higher than for buyers who did not use down payment assistance. This study helps to confirm that when given a chance, those who lack down payment will become responsible homeowners. Those who work hard and pay their bills on time should have the opportunity for home ownership.
