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Bank of America today announced a new zero down-payment, zero closing-cost mortgage solution for first-time homebuyers that will be available in designated markets.
The bank said the program will be available specifically in certain Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, N.C.; Dallas; Detroit; Los Angeles; and Miami.
Called the Community Affordable Loan Solution, it is intended to help eligible individuals and families obtain an affordable loan to purchase a home, the bank said.
The Community Affordable Loan Solution is a Special Purpose Credit Program, which uses credit guidelines based on factors such as timely rent, utility bill, phone, and auto insurance payments. It requires no mortgage insurance or minimum credit score. Individual eligibility is based on income and home location, the bank said.
Prospective buyers must complete a homebuyer certification course provided by select Bank of America and HUD-approved housing counseling partners prior to application, it said.
This new program 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, the bank said.
Through this commitment, Bank of America said, it has already helped more than 36,000 people and families become homeowners, having provided more than $9.5 billion in low down-payment loans and over $350 million in non-repayable down payment and/or closing cost grants.
To date, two-thirds of the loans and grants made through the Community Homeownership Commitment have helped multicultural clients to achieve homeownership, it said.
Bank of America said it also has a 26-year relationship with the Neighborhood Assistance Corporation of America (NACA), through which it has committed to providing an additional $15 billion in mortgages to low-to-moderate income homebuyers through May 2027.
According to the National Association of Realtors, there is a nearly 30-percentage-point gap in homeownership between white and Black Americans; for Hispanic buyers, the gap is nearly 20%. The competitive housing market has made it even more difficult for potential homebuyers, especially people of color, to buy homes.
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” said AJ Barkley, head of neighborhood and community lending for Bank of America. “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.”