NeighborWorks network homebuyers were overwhelmingly first-time buyers in FY2025

NeighborWorks America says 94% of its network homebuyers who closed in fiscal 2025 were buying their first home, far above the national share. The data show the network is helping lower-income buyers clear affordability barriers with counseling, education, and assistance.

Why it matters: - NeighborWorks network organizations are helping first-time buyers reach homeownership at a rate more than four times the national share. - The results point to a working model for buyers who are earning below their local area median income and still facing high housing costs. - The data also show how counseling and assistance can help narrow the gap between income and home prices.

What happened: - In Federal Fiscal Year 2025, 94% of homebuyers who closed with one of the nearly 250 nonprofits in the NeighborWorks® America network were buying their first home. - The typical network homebuyer was 36 years old and had a household income of $66,000. - First-time buyers made up 21% of home purchases nationally in 2025, according to the National Association of Realtors. - NeighborWorks released the findings on Oct. 19, 2026, in Washington, D.C.

The details: - Over the last five fiscal years, the median purchase price for NeighborWorks network homebuyers rose 26% to $260,500 from $206,000. - Median household income for those buyers increased 24% to $66,000 from $53,000. - The median first mortgage amount increased 20% to $233,600 over the same period. - Down payment and closing cost assistance increased 67% to a median of $16,700. - That assistance represented 6.4% of the median purchase price in FY2025, up from 4.9% five years earlier. - Eighty-four percent of network homebuyers received eight or more hours of homebuyer education or counseling over the last five years. - Every homebuyer in the analysis received at least one hour of education or counseling from a network organization or formal partner. - Nearly 100% received at least four hours. - At least 90% of network homebuyers were first-time buyers in each of the last five years. - The network’s five-year median household income for homebuyers was $58,000, compared with $112,000 in the general market in 2025. - Fifty percent of network homebuyers over five years earned less than 80% of Area Median Income. - The FY2025 share was 47%. - Nationally, 27% of buyers in 2025 earned less than 80% of Area Median Income. - The median age of network homebuyers was 36 in FY2025 and remained consistent across all five years. - Seventy-four percent of network homebuyers were under 45 over that period, compared with 66% of the general market in 2025. - The median household size was two people across FY2021 through FY2025. - Over the last five years, 43% of network homebuyers purchased in suburban census tracts, 40% in urban tracts and 17% in rural tracts. - That regional mix changed only slightly from FY2021 to FY2025. - The suburban share rose 1.2 percentage points, while the rural share fell 1.6 percentage points. - Nearly half of NeighborWorks network homebuyers had no mortgage insurance at closing in FY2025. - The share without mortgage insurance rose from 32% in FY2021 to 46% in FY2025. - The share using FHA mortgage insurance declined from 35% to 28% over the same period. - The share with private mortgage insurance stayed relatively stable, ranging from 13.6% to 15.6%.

Between the lines: - The numbers suggest that the NeighborWorks model is reaching buyers who are closer to the margin on affordability than the typical market buyer. - The combination of counseling, education and financial assistance appears to be offsetting some of the pressure from rising prices and mortgage costs. - The five-year trend also suggests the network is serving a broad mix of suburban, urban and rural communities rather than concentrating in one geography. - Marietta Rodriguez, president and CEO of NeighborWorks America, said the organizations help people who have been told the math will not work for them and then make it work. - Michael Butchko, vice president of business intelligence, said the network’s loan-by-loan reporting allows NeighborWorks to compare its work with national home purchase trends.

What's next: - NeighborWorks said it will continue sharing data and insights on the homebuyers served by its network and the factors shaping access to homeownership. - The organization also pointed readers to a full list of network organizations. - The reporting framework may help track whether first-time buyer success holds up as affordability conditions change.

The bottom line: - NeighborWorks is pairing education with assistance in a way that is producing first-time homeownership for lower-income buyers at scale.