DS News - Digital Archives

» VISIT US ONLINE @ DSNEWS.COM COVER STORY COVER STORY MARKET PULSE S There are many programs offered by both large and small organizations that provide down payment assistance to potential homeowners. First, however, they must participate in financial literacy programs offered by nonprofit housing counselors, local consumer advocacy groups, or specific lending programs. The results of these efforts are being realized in the revitalization of formerly declining neighborhoods and the stabilization of home values in many areas. Private-Nonprofit Collaboration Put together a team consisting of one of the largest banks in the United States, an outstanding nonprofit organization, and some federal agencies, and you have a winning combination. Wells Fargo Bank has partnered with Neighborworks America, an independent nonprofit organization, and HUD to create some innovative new programs to assist homebuyers in selected areas. These Wells Fargo LIFT programs offer down payment assistance and homeowner education to prospective homebuyers in areas severely impacted by the housing crisis during the past several years. The objective is to help prospective homebuyers learn about financial management and the responsibilities of homeownership before purchasing a home. LIFT programs provide down payment assistance in amounts of $15,000 to $30,000 for qualified buyers, depending on the area. It is believed that these programs will help to stabilize prices in neighborhoods hit by foreclosures and encourage repair of aging properties. Presently, Wells Fargo has implemented three LIFT programs: NeighborhoodLIFT – This down payment assistance and homebuyer education program began in 2012 and is funded by the Wells Fargo Foundation. INSIDE THE BELTWAY ometimes good things come out of bad situations. The disastrous effects of the housing crash of the past few years have inspired people and organizations to work together and look for new solutions. Nonprofit organizations, lenders, governmental agencies, trade associations, and community organizations have come together to find ways to help homebuyers get back into a home, and this time, to manage their homeownership with better judgment and expertise. CityLIFT – Modeled after NeighborhoodLIFT, this program was also created in 2012 in response to an agreement negotiated with the U.S. Department of Justice. It offers down payment assistance and homebuyer education in communities most impacted by the default crisis. It is funded by Wells Fargo Bank. UrbanLIFT – This most recent program, in cooperation with HUD, offers grants for large neighborhood improvement projects in 25 cities that have substantial diverse populations and have been affected by large numbers of foreclosures. The program is scheduled to deliver nearly $11.5 million in grants late next month. LIFT programs are unique in that they are a one-of-a-kind program, believes Kim Smith Moore, LIFT programs manager at Wells Fargo Home Mortgage. "Wells Fargo has always done a lot of work with home preservation, and based on thousands of community conversations, meetings with Wells Fargo Housing Foundation members, and NeighborWorks America, we felt that we needed to have a down payment assistance program to create a spark in local housing markets," she explained. "It's all about stabilizing the community and neighborhood revitalization, but a huge component is the education process. When people receive homeowner education, they can make a decision as to whether they are ready for homeownership or not." Moore recalls that after a recent homebuyer workshop, a young woman said she felt ready to become a homeowner, but two years previously, she did not. After learning what homeownership involved, she didn't feel ready to become a homeowner. Two years later, however, she was ready because she said she felt more responsible and better 49

• Cover