Bank of America may have something up its sleeve to make the home buying process less painful for first-time buyers.
According to a news release, the financial institution announced its new mortgage option, which would offer first-time home buyers the opportunity to purchase with no down payments, no closing costs, and no minimum credit score. The program is geared toward leveling the playing field for Black and Hispanic individuals looking to own a home.
Leveling The Playing Field
The Community Affordable Loan Solution will be available to families and individuals purchasing homes in “designated markets, including certain Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami,” Bank of America confirmed in an official news release.
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” AJ Barkley, head of neighborhood and community lending for Bank of America, said a statement, according to the release. “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.”
How Do I Qualify?
The program doesn’t require mortgage insurance or a minimum credit score. Instead, they will take factors such as “timely rent, utility bill, phone and auto insurance payments” into consideration.
Income and home location will be the basis for eligibility and participants of the program are required to complete a homebuyer course from Bank of America and Department of Housing and Urban Development-approved partners.
Bank of America also shared that there is no set limit on the number of loans available through the program.
Community Homeownership Commitment™
According to the release, the company states:
“This new program is in addition to and complements Bank of America’s existing $15 billion Community Homeownership Commitment™ to offer affordable mortgages, industry leading grants, and educational opportunities to help 60,000 individuals and families purchase affordable homes by 2025.”