Wells Fargo and city of Denver officials on Wednesday announced a program to provide $4.5 million in down-payment assistance to qualified homebuyers.
The initiative will offer $15,000 down-payment grants for up to 252 homebuying families that earn no more than 120 percent of the Denver-area median income.
For a family of four, the maximum income is $92,050. The income limit for a one-person household is $64,450.
Homebuyers interested in the NeighborhoodLift program must prequalify for a mortgage and attend a program-launch event taking place April 4 and 5 at the Colorado Convention Center. They also need to complete an eight-hour educational session.
While the program is funded by Wells Fargo, participants can choose from a list of approved mortgage lenders. The bank has introduced similar down-payment assistance programs in 24 other cities nationwide.
Wells Fargo also is providing $500,000 for the city of Denver to use in community development and neighborhood revitalization.
“It’s our responsibility to support our communities,” said Shelley Marquez, senior vice president and community development manager for Wells Fargo. “If our communities aren’t successful, then we aren’t.”
Bank officials said the down-payment program is unrelated to a 2012 case in which San Francisco-based Wells Fargo agreed to pay at least $175 million to settle allegations that it violated federal fair-lending laws.
That settlement called for the bank to offer $50 million in down-payment grants in nine cities where the U.S. Department of Justice had found discriminatory lending patterns. Although the new Denver program is structured similarly, its funding from Wells Fargo is not part of the settlement.
Homebuyers that receive down-payment grants must live in the purchased home for five years. If they sell or refinance the home before five years, a pro-rated share of the $15,000 must be paid back.
The $4.5 million program includes $3.78 million in payments to homebuyers and $720,000 in administrative costs.
Wells Fargo’s additional $500,000 grant to the city of Denver will support existing affordable-housing and community-investment programs.
“Here in Denver, there is a strong need for additional workforce housing opportunities,” said Mayor Michael Hancock. “We have to get extremely dedicated — and we are — to getting more workforce housing.”
How it works
• Get information at crhdc.org or 303-428-1448.
• Determine that household income is no more than 120 percent of median.
• Prequalify for a mortgage from participating lenders.
• Register to attend the program launch April 4 and 5 at the Colorado Convention Center.
• Complete homebuyer education requirements.
• A currently owned home must be sold before closing on a new purchase.
