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Bank of America has a new zero down payment, zero closing cost mortgage for first-time homebuyers aimed at broadening access to homeownership in Black and Latino communities.
It is making its Community Affordable Loan Solution available in designated markets that include predominantly Black or Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami.
As a Special Purpose Credit Program, the Community Affordable Loan Solution doesn’t have a minimum credit score or require private mortgage insurance, an additional cost borrowers typically encounter when putting down less than 20 percent.
AJ Barkley
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” said AJ Barkley, Bank of America’s head of neighborhood and community lending, in a statement. “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.”
The new program, announced this week, is the latest component of Bank of America’s $15 billion Community Homeownership Commitment, which has set a goal of helping 60,000 individuals and families purchase homes by 2025.
Bank of America said it’s already helped facilitate 36,000 home purchases by providing more than $350 million in down payment and closing cost grants that don’t have to be repaid and made $9.5 billion in low down payment loans.
Homeownership rate by race, 2010 to 2020
Source: “A Snapshot of Race and Home Buying in America,” National Association of Realtors
At 43.4 percent, the…