Wells Fargo Launches New Down Payment Grant Program to Help Lower-Income and First-Time Buyers

The current economic landscape has put what seems like dozens of roadblocks in the way of anyone looking to make a property purchase. Rising interest rates and low inventory have been plaguing the US housing market for over a year at this point, and if you’re a first-time buyer or otherwise don’t have as many financial resources to afford a major home purchase, things can certainly look bleak - but there are programs out there to help. Here’s one of them.

The Homebuyer Access Grant

Wells Fargo announced a new down payment grant program earlier in 2023 that has the potential to come to the rescue of lower-income and first-time buyers. The program, called the Homebuyer Access grant, is designed to help lower-income and first-time buyers overcome the financial hurdles of buying a home by offering up to $10,000 to eligible homebuyers

To be eligible for the Homebuyer Access grant, buyers must meet the following criteria:

• Have a combined income of 120% or less of the area median income (AMI) in the county where the property is located.
• Be purchasing a primary residence.
• Have a credit score of at least 620.
• Be able to make a down payment of at least 3%.

The Homebuyer Access grant can be used to cover the down payment on a Wells Fargo fixed-rate conventional loan. The grant funds are not taxable and do not have to be repaid.

The Timing Could Not Be Better

The Homebuyer Access grant is a significant financial benefit for lower-income and first-time buyers. The average down payment for a home in the United States is 20%, but many buyers can only afford a down payment of 3% or less. The Homebuyer Access grant can help buyers cover the remaining 7% to 17% of the down payment, making homeownership more attainable.

In addition to the down payment grant, Wells Fargo also offers a variety of other programs to help lower-income and first-time buyers purchase a home. These programs include:

• Dream. Plan. Home.: This program provides financial education and counseling to help buyers prepare for homeownership.
• ClosingCost Assist: This program provides up to $6,000 in closing cost assistance to qualified buyers.
• Mortgage Flex: This program allows buyers to make a down payment of as little as 3% and still qualify for a mortgage.

Much-Needed Help For Uncertain Times

The Homebuyer Access grant is a welcome addition to Wells Fargo's suite of programs for lower-income and first-time buyers, of which there are quite a few. The grant can help these buyers overcome the financial hurdles of buying a home and achieve the dream of homeownership. In addition to the financial benefits, the Homebuyer Access grant can also provide other advantages for buyers. For example, the grant can help buyers qualify for a lower interest rate on their mortgage. This can save buyers thousands of dollars in interest payments over the life of their loan - especially with interest rates going through the roof lately!

The Homebuyer Access grant is also a great way to build equity in a home. When buyers make a down payment, they are essentially investing in their future. The more equity a buyer has in their home, the more secure their financial future will be. If you are a lower-income or first-time buyer, the Homebuyer Access grant is a great way to help you afford a home. The grant can provide you with the financial assistance you need to achieve the dream of homeownership. This program, and others like it, could easily help you clear that last hurdle to home ownership.