Bank of America introduced a new mortgage solution with no down payment and no closing costs for first-time homebuyers, which will be available in Census-defined African-American and Hispanic-Latino communities 2020 in Charlotte, Dallas, Detroit, Los Angeles and Miami.
“CommunityAffordable Loan Solution™” has as its Its objective is to help individuals and families qualify for an affordable loan to access housing.
“Affordable Community Loan Solution” is a Special Purpose Credit Program, which uses credit guidelines credit based on factors such as timely rent payments, utility bills, phone bills, and car insurance bills. No mortgage insurance or minimum credit score required.
Individual qualification is based on income and housing location. Before applying, prospective buyers must complete a homebuyer certification course provided by certain Bank of America-approved housing counselors and the US Department of Housing and Urban Development (HUD).
The banking institution said through a statement that this option is added to the current commitment of $20,000 millions from the Bank of America Homeownership Program to provide affordable mortgages, leading grants in industry and educational opportunities to help 60,000 individuals and families to buy an affordable home for 2025.
Bank of America indicates that with this initiative has already helped more than 36,000 individuals and families to become homeowners by providing more than $9,500 million in home loans n Low down payment and over $500 million in grants that require no down payment or closing cost reimbursement. To date, two-thirds of the loans and grants awarded through the Homeownership Program have helped multicultural clients become homeowners.
According to the National Association of Realtors, today there is a gap of almost 20 points percentages between black and white American homebuyers; for Hispanic buyers, the gap is almost 15%. In addition, competition in the real estate market has made it even more difficult for potential home buyers to become homeowners, especially the smallest.
“Owning a home properly strengthens our communities and can help individuals and families build wealth over time,” said AJ Barkley, director of community lending at Bank of America. “Our Community Affordable Loan Solution™ will help more African American and Hispanic families achieve the dream of homeownership sustainably, and is part of our broader commitment to the communities we serve.”
Bank of America reminded stakeholders that it offers educational resources to help them through the home buying process, including:
– The Bank of America® First Time Homebuyer Online Edu-Series, which are easy-to-understand videos with available information in English and Spanish on how to buy and finance a home.
– The free financial education content from MejorHabitosFinancieros.com, which includes videos on how to manage finances and how to prepare to buy a new home.
– Bank of America’s Down Payment Center, a website to help homebuyers find state programs and local down payment and closing cost assistance in your area.
– The Bank of America Real Estate Center, a website to help homebuyers qualify properties they might find for the Bank of America and Community Affordable grant programs Loan Solution™.
For more information, contact Bank of America at 1-800-641-8362.
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