Well Fargo & Co. has pledged to offer $5.2 million to homebuyers who will qualify for its Cincinnati NeighborhoodLIFT program.
Up to $4.2 million will be used to provide down payment assistance grants and program support during a two-day event that will start on Nov. 21, according to a company release.
Wells Fargo's partners in this public-private collaboration include NeighborWorks America, the Home Ownership Center of Greater Cincinnati and the city of Cincinnati.
To qualify for down payment assistance grants of up to $15,000 homebuyers' annual incomes must not exceed 120% of the Cincinnati area median income of roughly $82,200 for a family of four, which may vary "depending on family size and type of loan." Homebuyers must qualify for a first mortgage loan from any qualified lender, purchase a home in Cincinnati and use it as a primary residence for at least five years.
Down payment assistance recipients are allowed to use the grant funds to buy a home that needs improvements if they qualify for a new mortgage purchase 203k renovation loan.
Down payment grants may be combined with other down payment assistance programs. Buyers also are required to complete an eight-hour homebuyer education class with The Home Ownership Center of Greater Cincinnati or a NeighborWorks America HUD-approved counseling agency. The Home Ownership Center of Greater Cincinnati will determine homebuyers' eligibility and administer the grants.
Approved homebuyers will have up to 60 days to finalize a home purchase contract.
In addition, according to the release, Wells will donate $500,000 "to support stabilization efforts in Cincinnati neighborhoods."
"Cincinnati neighborhoods were significantly affected by the housing crisis," said J.R. Huber, area manager with Wells Fargo Home Mortgage. "While mortgages are available at relatively low interest rates, many families are unable to buy a home because they struggle with making the down payment."
Cincinnati is one of 30 markets across the country designated to benefit from Wells Fargo's $220 million LIFT initiative, which since February 2012 has assisted more than 7,850 homeowners.
