According to NBC News, Bank of America is now providing zero down payment and zero closing cost mortgages to first-time homebuyers in a limited number of cities. The goal of the campaign is to increase the number of Black and Hispanic/Latino homeowners.
The first people to have the chance to benefit are locals in particular neighborhoods like Charlotte, Dallas, Detroit, Los Angeles, and Miami. According to the bank, the new mortgage, known as the Community Inexpensive Loan Solution, intends to assist qualified people and families in obtaining an affordable house loan.
AJ Barkley, head of neighborhood and community lending for Bank of America, said in a press release, “Homeownership strengthens our communities and can help individuals and families to build wealth over time.” He added, “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.”
Additionally, Bank of America released more details for potential buyers. The institution recommends that mortgage insurance, which is generally paid to buyers who put down less than 20% of the purchase price, is not necessary for loans. No minimum credit score is also required. Instead, considerations like on-time utility, phone, and auto insurance payments as well as timely rent payments will determine eligibility.
They also clarified that before qualifying for the loan program, potential buyers must successfully complete a homebuyer certification course offered by the organization and federally certified housing counseling partners. Given Bank Of America’s past, this campaign is a fantastic approach to assist people of color. If you recall, allegations that Countrywide Financial charged Black and Hispanic homeowners greater interest rates than white applicants resulted in the subprime lender, which Bank of America acquired in 2008, being fined $335 million in 2011.