As American home buyers contend with high mortgage rates and rising home prices, one bank is offering $10,000 in grants to help with down-payment assistance for those living in eight cities. Wells Fargo
on Thursday announced that it was offering grants to eligible home buyers who either currently live in or are buying homes in certain underserved communities in eight metro areas.
The grants will be available to buyers who earn a combined 120% or less of the area’s median income in the county where the property is located. The down-payment grant is also only available if the buyer uses a Wells Fargo fixed-rate mortgage, and the property will be used as the purchaser’s primary residence. The eight metros included are 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. The median price of a single-family home across metro markets in the second quarter of 2023 was $402,600, according to the National Association of Realtors. On that basis, a 20% down payment would cost $80,520. “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,” Kevin Reen, head of Wells Fargo Home Lending, said in a statement. “One of the biggest barriers to achieving homeownership is coming up with the down payment,” he added. Down payments are tied to home values, so buyers in more expensive markets such as California may have to fork out more than a buyer in the Midwest. The median price of a single-family home across metro markets in the second quarter of 2023 was $402,600, according to the National Association of Realtors. On that basis, a 20% down payment would cost $80,520. Buyers typically put down 20% on the purchase price of their home to avoid paying mortgage insurance. The monthly mortgage paym …