The NeighborhoodLift is a collaborative program between NeighborWorks America ( a nonprofit organization), Wells Fargo Foundation and Fargo Bank, N.A. The program is designed to assist home buyers in areas that were worst hit by the financial crisis in making down payments and getting home buyer education. The program was developed in 2012.
Depending with the market, the amount of down payment varies. The NeighborhoodLift program is available for families that earn 120% or lower than the median income of the area after adjustments for household size have been done. However, the funds acquired through the program cannot be used in the purchase of bank owned properties that Wells Fargo Premier Asset Services manage.
Despite the fact that Wells Fargo is the main sponsor of the program, prospective home owners can seek financing for the remainder of the home purchase funds through qualified lenders that accept down payment through the program.
So how does one qualify for this program? For one to qualify for the program, one must seek approval from a participating lender for a first mortgage loan. One should also have a sales and purchase agreement for a home. Before the prospective buyer gets the funds, he or she should complete education on home buying from an approved organization.
For prospective borrowers, household income should not exceed 120% of the median income of the area after adjustment for family size. At the time of closing, a person will not be allowed to own another home. If the person currently owns one, it should be sold before getting the funds. The NeighborhoodLift program is only available to people who will use the home as primary residence, and the home should lie within the defined areas.
For the owner occupied homes, the funds are given as a 5 year forgivable loan. Provided that the owner resides in the home, the loan will be forgiven at 20% every year. If the property is transferred or is no longer the principal home of the owner, the remaining funds will be due immediately.