Bank of America last week announced a new zero down payment, zero closing cost mortgage plan for first-time home buyers to “expand homeownership opportunities in Black/African American and Hispanic-Latino communities.”
“The new program will be available in designated markets, including certain Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. The Community Affordable Loan Solution™ aims to help eligible individuals and families obtain an affordable loan to purchase a home,” said the bank in a press release.
Instead of using a credit score, the new loan 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.
“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.”
The bank said borrowers do not need to be Black or Hispanic to qualify. Eligibility is based on borrower income and home location.
For more on the new loan with Bank of America, click here