Bank of America today announced a new mortgage solution for first-time homebuyers that offers a bank-provided down payment with no transaction fees. The Community Affordable Loan Solution is available in select markets, including certain Black/African American and/or Hispanic-Latino communities in Charlotte, Dallas, Detroit, Los Angeles and Miami.The Community Affordable Loan Solution™ is designed to help eligible individuals and families obtain an affordable loan to purchase a home.
Community Affordable Loan Solution is a special purpose credit program it uses credit guidelines based on factors such as timely rent, utility, phone and auto insurance payments. It does not require mortgage insurance or a minimum credit score. Individual eligibility depends on income and home location. Anyone from any race or ethnicity is welcome to apply. Prospective buyers must complete a homebuyer certification course offered by select Bank of America and HUD-approved housing counseling partners prior to applying.
This new program complements and supplements Bank of America’s existing $15 billion program, the Community Homeownership Promise™, which provides affordable mortgages, industry-leading grants and educational opportunities to help 60,000 individuals and families purchase affordable homes by 2025. Through this commitment, Bank of America has helped more than 36,000 individuals and families become homeowners, providing more than $9.5 billion in funded low down payment loans and more than $350 million in non-repayable down payment and/or closing cost assistance. To date, two-thirds of the loans and grants provided through the Community Homeownership Promise have helped multicultural clients achieve homeownership.
Bank of America also has a 26-year partnership with Neighborhood Assistance Corporation of America (NACA), through which it has committed an additional $15 billion in mortgage loans to low- and moderate-income homebuyers through May 2027.
According to the National Association of Realtors, today there is nearly a 30 percentage point gap between white and black American homeownership; for Hispanic buyers, the gap is almost 20 percent. The competitive real estate market is making it harder for potential homebuyers, especially people of color, to buy a home.
“Homeownership strengthens our communities and can help individuals and families build wealth over time,” said AJ Barkley, head of neighborhood and community lending at Bank of America. “Our community affordable lending solutions will help more black and Hispanic families realize the dream of continued homeownership as part of our broader commitment to the communities we serve.”
In addition to expanding access to credit and down payment assistance, Bank of America offers educational resources to help homebuyers navigate the home buying process, including
The First-Time Homebuyer Online Education Series™ a five-part, easy-to-understand video roadmap to homeownership and financing, available in English and Spanish.
BetterMoneyHabits.com’s free financial education content, including videos on money management and how to prepare for the purchase of a new home.
Bank of America Down Payment Center – A website that helps homebuyers find state and local down payment and closing cost assistance programs in their area. Bank of America participates in more than 1,300 state and local down payment and closing cost assistance programs.
Bank of America Real Estate Center – A website that helps homebuyers find properties with a logo to identify properties that may qualify for the Bank of America Grant Program and Community Affordable Lending Solutions™.
For more information, contact Bank of America at 1-800-641-8362.
In related news, Bank of America today announced the launch of a small business down payment program to drive business growth and help create generational wealth opportunities for minority and women business owners. This special purpose credit program will provide historically disadvantaged small business borrowers with credit to enable them to purchase commercial real estate through grants. The program will launch in select markets – Atlanta, Chicago, Charlotte, Dallas and Los Angeles – and is scheduled to expand in 2023.
Bank of America
Bank of America is one of the world’s leading financial institutions, offering a full range of banking, investment, asset management and other financial and risk management products and services to individual consumers, small and medium-sized businesses and large corporations. It offers unparalleled convenience in the United States, serving approximately 67 million consumer and small business customers through approximately 4,000 retail financial centers, approximately 16,000 ATMs and award-winning digital banking with approximately 55 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking, and transactions across a broad range of asset classes, serving businesses, governments, institutions and individuals around the world. Bank of America provides industry-leading support to approximately 3 million small business families through a suite of innovative, easy-to-use online products and services. The company serves its customers through operations in the United States, its territories and approximately 35 countries.
