Funding Assistance for Home Buyers in Eight Cities

As American home buyers navigate the challenges of high mortgage rates and escalating home prices, Wells Fargo has announced a generous grant program to help ease the burden of down payments. In an effort to support those living in underserved communities, the bank is offering grants of $10,000 for eligible home buyers.

To be eligible for the grant, home buyers must either currently reside in or plan to purchase property in certain specified metros. These include Minneapolis–St. Paul–Bloomington, Philadelphia–Camden–Wilmington, Dallas–Ft. Worth–Arlington, Washington–Arlington–Alexandria, Baltimore–Columbia–Towson, Atlanta–Sandy Springs–Alpharetta, Charlotte–Concord–Gastonia, and New York–Newark–Jersey City.

To qualify for the down payment grant, buyers must have a combined household income of 120% or less than the median income in the county where the property is located. Additionally, recipients of the grant must secure a Wells Fargo fixed-rate mortgage and intend to make the purchased property their primary residence.

According to Kevin Reen, head of Wells Fargo Home Lending, "Homeownership is central to building wealth but has been out of reach for many minority families as a result of systemic inequalities in housing and finance." Reen further notes that one of the biggest obstacles to achieving homeownership is the high cost of down payments.

In October 2022, LendingTree reported that the average down payment on a home nationwide was $63,000. However, it's important to note that down payment amounts are influenced by regional home values. Buyers in more expensive markets, such as California, may need to contribute more than those purchasing homes in the Midwest.

The National Association of Realtors reveals that the second-quarter median price of a single-family home in metro markets was $402,600. To avoid mortgage insurance, buyers typically aim to make a 20% down payment.

It's worth noting that, compared to the previous year, the monthly mortgage payment for a standard existing single-family home has increased by 11.6%, amounting to $2,051.

Wells Fargo's initiative aims to address the significant financial barrier of down payments and help more prospective home buyers achieve their dreams of homeownership.