Wells Fargo made a notable announcement on Monday, unveiling a major expansion of its $10,000 down payment grant program aimed at supporting underserved borrowers.
This initiative, which began over a year ago in eight metropolitan areas, is now set to reach 12 new cities.
Program Details and Expansion
Kevin Reen, who leads Wells Fargo Home Lending, emphasized that the extension of this program underscores the bank’s dedication to enhancing homeownership opportunities for low- and moderate-income individuals across a wider range of locations.
The Homebuyer Access program caters to those whose income falls within 120% of the area median income (AMI).
Participants can utilize the grant specifically for their down payment on a primary residence, as long as they secure a fixed-rate conventional loan with Wells Fargo.
Among the latest cities added to the program are five in California: Anaheim, Los Angeles, Oxnard, San Diego, and Salinas.
Additionally, borrowers in Buffalo, New York; Denver, Colorado; Kansas City, Missouri; Memphis, Tennessee; Oklahoma City, Oklahoma; Omaha, Nebraska; and Pittsburgh, Pennsylvania, will now have access to this support.
Additional Benefits for Participants
Originally launched in August 2023, the Homebuyer Access program was introduced in prominent cities such as Minneapolis, Philadelphia, Dallas, Washington, D.C., Baltimore, Atlanta, Charlotte, and New York City.
Eligible participants can combine this down payment grant with other offerings from Wells Fargo, potentially amplifying their assistance to as much as $15,000 for both closing costs and down payments.
Through the bank’s Dream.
Plan.
Home. program, individuals earning at or below 80% of the AMI may qualify for up to $5,000 in closing cost credits, available in certain counties across 22 metropolitan regions.
Financial Performance and Future Commitments
This grant initiative is part of Wells Fargo’s broader Special Purpose Credit Program (SPCP), which launched in April 2022 with an initial commitment of $210 million specifically aimed at supporting minority families.
In a related move in January 2023, Wells Fargo announced its decision to exit the correspondent lending sector, refocusing its efforts on better serving bank customers and enhancing support for minority homebuyers through its mortgage retail division.
Moreover, the bank has pledged an additional $100 million to foster racial equity in homeownership and has strengthened its outreach in local minority communities by deploying more home mortgage consultants.
From a financial standpoint, Wells Fargo reported $5.5 billion in mortgage originations for the third quarter of 2024.
This figure represents a 14% decrease compared to the previous year, yet marks a 4% increase from the second quarter.
The home lending segment generated $842 million in revenue, which is up 2% from the preceding quarter, largely due to a rise in servicing income.
Source: Housingwire