The Bank of America program includes a down payment grant component and America’s Home Grant program, which covers certain closing costs. Since the program’s launch, Bank of America has helped nearly 21,000 individuals and families buy homes with affordable loans and provided more than $180 million in down payment and closing cost grants. The bank’s new goal is to help more than 60,000 people and families buy homes by 2025.
When the two grant programs are used together, homebuyers receive an average of $14,000 to help them buy their home. Additionally, many of these buyers choose a fixed rate, low down payment mortgage to keep upfront purchase costs low. Some of the bank’s loan programs have a down payment requirement as low as 3% and require little or no mortgage insurance. About 85% of these loans are given to first-time home buyers.
The Down Payment Grant program, available in more than 260 cities and counties across the United States, provides up to $10,000 or 3% of the purchase price of the home, whichever is lower. No refund is required.
America’s Home Grant program provides lender credit of up to $7,500 to be used for closing costs such as title insurance or registration fees. It can also be used to redeem the interest rate permanently. No refund is required.
In addition to these programs, the Bank of America Real Estate Center helps potential buyers find grant-eligible properties.
Buyers can also learn more about buying and financing a home through the online educational series for first home buyers, available in English and Spanish.