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Amid economic uncertainty and changing federal ideology, NeighborWorks America remains a crucial force in homeownership education, affordable housing development and financial literacy, supporting thousands of Americans in their journey.
“Essentially, we are an intermediary,” said Doug Robinson, head of media relations for NeighborWorks America. “We get money from Congress every year — thankfully, we got it this year as well — and then provide grants to about 250 nonprofits around the country.”
According to Robinson, 90% of these nonprofit organizations focus on homeownership services, including homebuyer education, foreclosure prevention, credit repair and budget management. Additionally, they offer down payment assistance grants, a critical resource in a market where down payment requirements continue to go up.
“There are over 2,000 down payment assistance programs in the United States,” Robinson explained. “Many middle-income groups don’t even realize they qualify. If your household income is $120,000 or $125,000, you might think there’s no assistance available, but there actually is — sometimes up to $50,000 from government or private programs.”
NeighborWorks affiliates also play a significant role in housing development. The organization constructs approximately 700 homes per year, placing it among the nation’s top 100 builders.
It also provides total lending efforts approaching $700 million annually when including down payment assistance programs.
Importance of homeownership education
Robinson laid out the invaluable nature of helping buyers understand the mortgage process, credit requirements and financial responsibilities of purchasing a home.
“A lot of renters believe they can’t become homeowners because of credit, debt or just not knowing where to start,” he said. “That’s where a nonprofit can help. First-time homebuyers need guidance, and while Realtors are great, they may not always know how to assist someone who is completely unfamiliar with the process.”
Robinson shared a striking example of why financial education is so important.
“A few years ago, my wife, who’s a Realtor, was working with a buyer who had their loan approval and contract set,” he said. “But right before closing, the underwriter found out the buyer had bought a car, which pushed them out of their debt-to-income ratio. The deal almost fell through.
“The thing is, they didn’t know that making a big purchase could jeopardize their mortgage approval. A housing counselor would have warned them about that.”
Lending and grant support
NeighborWorks’ financial support extends beyond education. The organization provides grants for housing rehabilitation and affordability programs, supporting both single-family and multifamily developments.
“We manage about 213,000 rental units, all with resident services, which include everything from financial literacy to senior activities,” Robinson said.
While NeighborWorks America itself has not experienced federal budget cuts, its affiliated organizations — which rely on various funding sources such as Community Development Block Grants and HOME funds — have faced financial strain.
NeighborWorks received a federal appropriation of $158 million in 2024, with the same figure approved for 2025, Robinson said.
“We do know that some of our affiliates have seen grant funding reductions or delays, which puts pressure on their services,” Robinson said. “Nonprofits across the country are making adjustments, sharpening their pencils and managing through whatever challenges arise. We also haven’t yet seen a rolled-up number that quantifies the total loss to housing nonprofits. We know there’s been a lot.”
Last week, a federal judge in Massachusetts ordered a halt to the cancellation of fair housing grants by the Department of Housing and Urban Development. That followed a lawsuit filed by groups in multiple states.
Political landscape, future challenges
The broader political environment continues to promote uncertainty for housing program funding.
“There have been lawsuits filed by nonprofits to regain frozen grant funds, particularly for green rehabilitation projects,” Robinson noted. “There’s a lot happening in the industry as organizations navigate these issues.”
Despite these challenges, demand for NeighborWorks’ services remains strong.
“We’re still seeing high interest in homebuyer education, even with mortgage rates where they are,” Robinson said. “In our surveys, about half of renters say they’re unsure about their homebuying options. That’s why our classes keep filling up. We just wish more people knew these resources exist.
“At the end of the day, we want to help people buy homes and keep those homes. That means making sure they have the knowledge, resources and support to navigate the process successfully.”
