By Stacy M. Brown
NNPA Newswire Senior National Correspondent
Bank of America announced a new no-down payment, no-closing-cost mortgage solution for first-time homebuyers that will be available in designated markets, including select African-American and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami.
According to a press release, the Affordable Community Loan Solution aims to help eligible individuals and families obtain an affordable loan to purchase a home.
“The Affordable Community Loan Solution is a special purpose credit program that uses credit guidelines based on factors such as timely rent, utility bill, phone, and auto insurance payments,” officials said in the statement.
“It requires no mortgage insurance or minimum credit score. Individual eligibility is based on income and place of residence.
Prospective buyers must complete a homebuyer certification course provided by select Bank of America and HUD approved housing counseling partners before applying.
Officials said the new program adds to and complements Bank of America’s existing $15 billion community homeownership commitment to provide affordable mortgages, industry-leading grants and educational opportunities to help 60,000 individuals and families to buy affordable homes by 2025.
Through this commitment, Bank of America has already helped more than 36,000 individuals and families become homeowners, providing more than $9.5 billion in low-down payment loans and more than $350 million in non-refundable down payment. and/or closing cost subsidies.
To date, two-thirds of Community Homeownership Commitment loans and grants have helped multicultural clients access homeownership.
Bank of America also has a 26-year relationship with the Neighborhood Assistance Corporation of America (NACA), through which the Bank has pledged to provide an additional $15 billion in mortgages to low-income home buyers. to moderate until May 2027.
According to the National Association of Realtors, today there is a nearly 30 percentage point gap in homeownership between white and black Americans; for Hispanic shoppers, the gap is almost 20%.
And the competitive housing market has made it even harder for potential buyers, especially people of color, to buy homes.
“Homeownership strengthens our communities and can help individuals and families build wealth over time,” said AJ Barkley, head of neighborhood and community lending for Bank of America.
“Our affordable community loan solution will help make the dream of sustainable homeownership accessible to more Black and Hispanic families, and it’s part of our broader commitment to the communities we serve.”
In addition to expanding access to credit and down payment assistance, Bank of America said it provides educational resources to help buyers navigate the home buying process, including:
First-Time Homebuyer Online Edu-Series, an easy-to-understand five-part video roadmap for buying and financing a home, available in English and Spanish.
Free financial education content from BetterMoneyHabits.com, including videos on managing finances and preparing to buy a new home.
Bank of America Down Payment Center – site to help homebuyers find state and local down payment and closing cost assistance programs in their area. Bank of America participates in more than 1,300 national and local down payment and closing cost assistance programs.
Bank of America Real Estate Center – site to help buyers find properties with flags to identify properties that may qualify for Bank of America grant programs and Community Affordable Loan Solution™.
For more information, contact Bank of America at 1-800-641-8362.