Bank of America no-down-payment mortgages for Black, Latino home-buyers
A trial program is getting launched by the Bank of America. They are planning to offer mortgages to the first time homeowners which will not require any sort of down payments, minimum credit scores and the closing costs.
This announcement was made by the bank this week. This trial programme is named as “Community Affordable Loan Solution”. It will be available to predominantly Black and Hispanic neighborhoods in Charlotte, Detroit, Dallas , Miami and Los Angeles. Applicants don’t need to be Black or Hispanic to qualify for this program.
Currently the planned size of programme is also not made clear. As of now no limits are mentioned for the numbers of loans in the programme. The property should be located in census tracts and should have more than 50% African American or Hispanic population. Bank has advised that home ownership strength the communities and also help both individuals and families to acquire wealth over the period of time.
AJ Barkley is the head of the neighborhood and community lending for Bank of America. He has said that “Community Affordable Loan Solution” will make the dream of owning a home possible for more number of Black and Hispanic families and it is the part of their broader commitment to all the communities which they serve. Bank of America is based in Charlotte.
They would also not require mortgage insurance for this programme. Mortgage insurance is the additional fee that home buyers face when they put down less than 20% of the home purchase price. Eligibility for same will be based on many factors like timely phone, rent, utility bill and auto insurance payments.
The buyers would be required to complete a home buyer certification course before applying for the program. This will be provided by the Bank of America and federally approved housing counseling partners.
Currently there is a substantial racial gap in terms of home ownership in 2020. According to the date from the National Association of Realtors, white household home ownership rate is 72.1%. But the percentage for Hispanic and black households are 51.1% and 43.4% respectively. This program will help improve this.