The newly created Dearfield Fund for Black Wealth offers first-time Black and African American homebuyers in the Denver metro area up to $40,000 in down payment assistance. Since its launch in September 2021, the Dearfield Fund has provided down payment assistance to more than 40 homebuyers, and plans to support another 500 homebuyers in the next five years.
Persistent racial inequalities in Colorado stem from gaps, not just in income but in wealth as well. The legacy of discrimination and exclusion have prevented black families from acquiring and passing down their wealth for generations; now, the wealth gap between white and Black families with kids can be as large as 100 to 1.
"Despite the fact that many Black and African American families have the income and credit to qualify for a home mortgage, a great majority of qualified Black families do not buy a home because they lack the wealth needed for a down payment," said Mike Johnston, president and CEO of Gary Community Ventures, which launched the Dearfield Fund. "The Dearfield Fund represents a first-of-its-kind solution to make sure that Black families who are ready to buy a home can get the down payment support they need to build intergenerational wealth."
These funds are dedicated to Black and African American first-time homebuyers who plan to buy a home in the Denver metro area and use their home as a primary residence; have a family income of $140,000 or less per year; and receive a conventional mortgage loan through participating lenders. Colorado’s largest locally owned bank, FirstBank, is the anchor mortgage lender for the program, showing their commitment to growing racial equity and multicultural banking.
"FirstBank is committed to creating a more equitable, inclusive environment for all," said FirstBank CEO Jim Reuter. "Part of that commitment involves prioritizing communities in need of better access to financial resources. We know Black and African American families represent the least likely ethnic/racial group to own a home compared to their peers, and we know homeownership can change a family's financial trajectory for generations to come. The Dearfield Fund represents just one way we're aiming to close social and financial inequities among communities of color."
Borrowers must contribute to the down payment at least 3% of the home price, and the Dearfield fund will provide up to $40,000 in down payment assistance. Upon reselling or refinancing, buyers will repay the down payment assistance plus 5% of the homes appreciation to cover the cost of operating the Dearfield Fund.
The program was named after Dearfield, CO — a historic Black-owned town established in 1910 — carrying on the vision of town founder Oliver "O.T." Toussaint Jackson, who believed the key to Black and African American communities owning their future was unlocking the door to their own homes and property.
The Dearfield Fund has partnered with Impact Development Fund, a non-profit community development financial institution with strong experience in similar programs to help service clients throughout this process.
“Today, the median wealth for a white family is $170,000 compared to just $18,000 for a Black family,” said Santhosh Ramdoss, vice president of Impact Investing at Gary. “Addressing this racial wealth gap requires us to dismantle the structural inequities that have been imposed upon Black communities, especially when it comes to ownership and asset building. The Dearfield Fund is part of a movement to create restorative capital tools that can help Black families build wealth and achieve financial mobility.”
