Bank of America Mortgage has come up with a solution No Down Payment, No Closing Costs, And No Minimum Credit Score for first-time homebuyers. The main reason for this program is to end the difference between Black and Hispanic individuals looking to have their own homes. Community Affordable Loan Solution™ aims to help around 60,000 eligible individuals and families to provide loans to purchase affordable homes by 2025.
As per a news release, the financial institution announced its new mortgage option, which would offer home buyers first-time purchases with zero down payments, zero closing costs, and zero minimum credit score.
As per the National Association of Realtors, a fair-lending advocacy group, a nearly 42 percent point gap stayed from 2016 to 2019, the lowest since 1970, while the rate of white homeownership reached 73 percent, a record high. In 2019, 58 percent of Asians and 47.5 percent of Latinos were homeowners. The competitive housing market has made it even more difficult for potential homebuyers, especially people of color, to buy homes.
Bank of America has committed to Neighborhood Assistance Corporation of America (NACA) to provide an additional $15 billion in mortgages to low-to-moderate income homebuyers through May 2027. Bank of America has already helped with more than $9.5 billion in loans to 36,000 people and families to become homeowners.
AJ Barkley, head of neighborhood and community lending for Bank of America, said in a statement introducing the program:
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families, and it is part of our broader commitment to the communities that we serve.”
The loan will be available in designated markets, including certain Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Miami, and Los Angeles.
The aforesaid program doesn’t require any specific documentation like mortgage insurance or a minimum credit score. Instead, Bank of America will consider Community Affordable Loan Solution, a Special Purpose Credit Program, such as “utility bill, timely rent, phone and auto insurance payments”. For eligibility, Income and home location will be taken as the base. All the participants of this program are required to undergo a homebuyer course from Bank of America and Department of Housing and Urban Development-approved housing counseling partners prior to application.
In addition to the above, Bank of America also provides educational assistance to help homebuyers, including:
- First-Time Homebuyer Online Edu-Series,™a five-part, easy-to-understand video roadmap for buying and financing a home, available in English and Spanish.
- Bank of America Down Payment Center – to help homebuyers find state and local down payments and closing cost assistance programs in their area. Bank of America participates in more than 1,300 state and local down payment and closing cost assistance programs.
- BetterMoneyHabits.com free financial education content, including videos about managing finances and how to prepare for buying a new home.
- Bank of America Real Estate Center – to help homebuyers find properties with flags to identify qualified properties for which Bank of America may grant programs and Community Affordable Loan Solution™.
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Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. The company serves clients through operations across the United States, its territories, and approximately 35 countries, with 67 million consumer and small business clients including approximately 3 million small business households through innovative, easy-to-use online products and services with approximately 4,000 retail financial centers, approximately 16,000 ATMs and award-winning digital banking with approximately 55 million verified digital users.
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