Wells Fargo Home Lending announced Aug. 10 the launch of a down payment grant program aimed to help bridge the homeownership gap.

The initiative, which falls under Wells Fargo‘s Special Purpose Credit Program, offers $10,000 Homebuyer Access grants that will be applied toward the down payment for eligible buyers who currently live in or are purchasing homes in certain underserved communities in eight metropolitan areas, including Camden (Philadelphia metro area), Jersey City and Newark (New York metro area).

The grants will be available to homebuyers who earn a combined 120% or less of the area median income in the county where the subject property is located. The funds can be used only toward the down payment on a Wells Fargo fixed-rate conventional loan secured by a property that will be the primary residence of the purchaser.

Wells Fargo said eligible homebuyers can combine the grant with other programs they qualify for. According to the company, the grant program builds on an SPCP initiative it announced last April, which initially focused on helping eligible Black homeowners whose mortgages are serviced by Wells Fargo lower their interest rates and reduce their monthly mortgage payments. And broadly, Wells Fargo said it strives to increase home lending to traditionally underserved communities by removing impediments to homeownership for communities of color and creating a more inclusive housing system.

“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,” said Kevin Reen, head of Wells Fargo Home Lending. “One of the biggest barriers to achieving homeownership is coming up with the down payment. We’re proud to make this dream a reality for families through our new $10,000 Homebuyer Access grant.”

More information on the program can be found here.

ICYMI

• Wells Fargo opens free financial coaching center in Newark