Thanks to a new mortgage program from Bank of America, the dream of owning a home is about to become much more attainable for those living in minority communities.
Bank Of America’s Community Affordable Loan Solution
Bank of America recently announced a new program for first-time homebuyers that will make it easier for eligible individuals and families to get an affordable mortgage. How affordable could Bank of America’s new mortgage be? Extremely when you consider that it comes with no down payment or closing costs, which eliminates two of the biggest financial hurdles to buying a home.
The Community Affordable Loan Solution program will only be available to select locations at this time, including historically Black and Hispanic neighborhoods in Miami, Dallas, Detroit, Charlotte, and Los Angeles. It may expand to other locations in the future.
Besides offering affordable mortgages to households that need them most, the Community Affordable Loan Solution program will also make home loans more accessible. It will achieve this goal by having no minimum credit score requirements. It will also waive the need for mortgage insurance.
With so many waived requirements, you may be wondering how one qualifies for this special mortgage product. The answer is that your income will be analyzed, as well as the home’s location. Since it is a Special Purpose Credit Program, the Community Affordable Loan Solution bypasses looking at credit scores and instead analyzes other factors like making timely payments on your rent, phone, utilities, and auto insurance.
Before applying for the Community Affordable Loan Solution, you will need to complete a homebuyer certification course from counseling partners approved by Bank of America or the U.S. Department of Housing and Urban Development.
The Community Affordable Loan Solution is not Bank of America’s first attempt to make homeownership more accessible. Its Community Homeownership Commitment has helped over 30,000 people buy homes via $15 billion in funding, and it will continue to help others through 2025 by offering affordable mortgages, grants, and education. Once the program is complete, an estimated 60,000 families will have used it to become homeowners. As it stands, two-thirds of Community Homeownership Commitment’s funding has been used to put multicultural families in new homes.
Bank of America has also pledged an additional $15 billion in mortgages to help low-to-moderate income families buy homes through May 2027. This comes through the bank’s relationship with the Neighborhood Assistance Corporation of America.
If you are looking to transition from renting to buying a home soon, here are some Bank of America resources that could help:
- BetterMoneyHabits.com – A site featuring free financial content to help you prepare for your first home purchase.
- Bank of America Real Estate Center – A site to help you find properties that qualify for the Community Affordable Loan Solution and other Bank of America grant programs.
- First-Time Homebuyer Online Edu-Series – A video series that details the steps to buying a home.
Bank of America Down Payment Center – A site to help you find down payment and closing cost assistance programs in your area.