Bank of America (BofA) has unveiled a new mortgage option for first-time homeowners in targeted locations that requires no down payment and no closing costs.
Although not all communities are mentioned, the release does include “particular Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles, and Miami.”
Individual eligibility is determined by income and place of residence.
Before applying, prospective purchasers must pass a homebuyer certification course offered by a select group of Bank of America and HUD-approved housing counseling partners. And these three primary routes listed below may be suitable for you before applying for the loan:
- Check your eligibility for a mortgage with no down payment: This objective is the focus of a new campaign that Bank of America launched in minority neighborhoods. You can obtain a mortgage without a down payment thanks to USDA and VA loans. To be eligible, however, you must fulfill a number of requirements linked to the location of the property, your income, or if you or your spouse has any military experience.
- Inquire for assistance from relatives or friends. The gift money from a family member, and in some situations, a close friend, a labor union, or an employer, can be used as your down payment with many lenders. A letter from the donor confirming that you are not required to repay the gift is required.
- Examine your alternatives for low-down payment mortgages. For those putting down less than 20%, conventional mortgages and government-backed mortgages are both accessible.
An overview of Bank of America
One of the top financial organizations in the world, Bank of America offers a broad variety of banking, investing, asset management, and other financial and risk management products and services to individuals, small and mid-sized enterprises, and major corporations.
With over 4,000 retail financial centers, 16,000 ATMs, and award-winning internet banking with about 55 million verified digital users, the corporation offers unequaled convenience in the US for its roughly 67 million consumer and small business clients.
As a leading nation in wealth management, investment banking, and trading across a wide range of asset classes, Bank of America provides services to businesses, governments, institutions, and people all over the world.
Through a variety of cutting-edge, simple-to-use online products and services, Bank of America provides about 3 million households with small businesses with industry-leading support.
The corporation has operations in the United States, its territories, and over 35 other countries, providing services to customers.
Bofa Loan Explained
The Community Affordable Loan Solution is a Special Purpose Credit Program that applies credit parameters based on things like on-time rent, utility, phone, and auto insurance expenses.”Neither a minimum credit score nor mortgage insurance are necessary.
The new initiative adds to and complements Bank of America’s existing $15 billion Community Homeownership Commitment, which aims to assist 60,000 individuals and families in the purchase of affordable homes by 2025 by providing them with access to affordable mortgages, grants that are among the best in the industry, and educational opportunities.
With the support of over $9.5 billion in low down payment loans and over $350 million in non-repayable down payment and/or closing cost subsidies, Bank of America has already assisted over 36,000 individuals and families in becoming homeowners through this commitment.
Two-thirds of the loans and subsidies provided as part of the Community Homeownership Commitment to date have aided multicultural clients in becoming homeowners.
Through a 26-year partnership, Bank of America has agreed to lend an additional $15 billion in mortgages to low-to-moderate income homebuyers through May 2027. This partnership is with the Neighborhood Assistance Corporation of America (NACA).
Between White and Black Americans, there is currently a nearly 30-percentage-point homeownership divide, while the gap for Hispanic buyers is only about 20%.
Additionally, it is now even more challenging for prospective homebuyers, especially those of color, to purchase homes due to the opposing housing market.
According to AJ Barkley, head of neighborhood and community lending for Bank of America, homeownership “strengthens our communities and can help people and families in gradually accumulating wealth.”
Our Community Affordable Loan Solution will contribute to helping more Black and Hispanic families realize their dream of sustained homeownership and are part of our broader commitment to the communities that we serve,” the company claims.
Guidelines For Loan Applicants
The Bank of America initiative presents an enticing offer for qualified homebuyers. Several lending schemes allow purchasers to put down little to nothing, but they all have greater costs for items like mortgage insurance. The following are guidelines for loan applicants:
- Be sure to be prepared: Examine your finances carefully before buying a home. Verify that you can afford your mortgage in addition to any other debt, such as a vehicle loan or college debt. Think about your income stability as well.
- Amass your savings: Although it is expensive, buying a home is typically a wise financial decision. You are responsible for paying ongoing costs such as upkeep, repairs, pest control, landscaping, and homeowners insurance in addition to property taxes.
- Research grant programs: First-time homebuyers can receive down payment assistance from most states, some localities, and charity organizations. There are homebuyer aid programs offered nationwide, so you can purchase a home even if you’re not doing so in a community covered by Bank of America’s new initiative.
- Think about home invasion: House-hacking, a new term for an ancient tactic, refers to residing in a triplex or duplex. You live in one property, rent out the other, and receive mortgage assistance from your tenants.
Mortgage Services From Bank Of America To Homebuyers
Bank of America offers learning tools to help homebuyers through the procedure in addition to increasing access to credit and providing down payment assistance. Some other services they provide include:
A website that assists prospective homeowners in locating regional down payment and closing cost assistance programs. According to Bank of America, it takes part in more than 1,300 state and municipal programs that offer down payment and closing cost help.
A five-part, simple-to-follow video guide that is available in both English and Spanish for purchasing and financing a home.
A website that assists purchasers in finding properties by displaying flags on properties that may be eligible for Community Affordable Loan Solution and Bank of America grant programs.
Free financial education materials are available, such as videos on budgeting and home-buying planning.
Do Personal Loans Exist At Bank Of America?
Personal loans are a remarkable way to cover unexpected expenses, fund home upgrades, and consolidate debt.
Despite being one of the biggest banks in the country, Bank of America does not provide personal loans. If you’re seeking a loan, though, you might be able to get money through banks and other internet lenders.
It does, however, provide a wide range of additional loans for particular reasons, all of which call for some kind of security (except unsecured credit cards).
Discover what kinds of loans Bank of America offers and where you can apply for a personal loan if you require one.
Variety of Loans Bank of America Offers
One of the largest banks in the United States, Bank of America, has lots of funds available for consumer loans. The following lending services are provided by the business:
- Credit Card: One of the most popular forms of borrowing in the US is credit cards. Your credit limit—the most they will loan you—is something the lender assigns to you. The credit card can then be used to make purchases when you go shopping. Interest rates on credit cards frequently surpass 20% because there is no asset to support them.
- Mortgage loans: A mortgage loan might last up to thirty years because they are frequently the biggest loans a person will ever take out. Fixed-rate and adjustable-rate (ARM) mortgages are the two primary categories of a mortgage.
A fixed interest rate applies to fixed-rate loans throughout the duration of the loan.
With adjustable-rate mortgages, the lender is free to periodically alter the interest rate. For the first five years of an ARM, such as a 5/1, the interest rate is fixed.
- Loans for equipment: You can use equipment loans to assist you to pay for the expensive equipment you need to operate your new property.
- Car loans: These loans, often known as auto loans, are obtained to buy a car.
The pricing, make, model year, and whether the car is new or old all affect the interest rate. Your vehicle may be repossessed by the bank if you fall behind on your payments.
- Credit lines for companies: Bank of America provides $10,000–$100,000 lines of credit for companies. If your company has been operating for at least two years and generated at least $100,000 in revenue last year, you are eligible. When you need to pay payments, you can use the business credit line to offer liquidity.
- Enterprise term loans: You can receive a one-time lump sum of money from a business term loan and repay it over the next one to five years. The optimum use for these loans is to finance significant acquisitions that will expand your business.
- Secured business credit lines: Applying for a secured loan is an option if you require a credit line or term loan with a higher size than what Bank of America’s unsecured loans allow. There are more stringent requirements: You must have generated $250,000 in sales in the previous year. If you default on the loan, Bank of America will have a higher chance of recovering its losses because these loans are secured by a lien on the assets of your business.
- Home equity credit lines (HELOCs): With HELOCs, you can convert a portion of the equity you’ve accumulated in your house into cash. Like a credit card, your lender will grant you a credit limit, or the maximum amount of money they’re willing to loan you. To request money from your HELOC, go to the lender. The money will be deposited into your checking account. Your HELOC debt plus interest will be charged to your account each month.
In Summary, The process of purchasing your first home may be both thrilling and overwhelming, which is why we have a number of tools and services to support you. We can assist you with getting the keys to your first house whether you are just starting to save or have a certain home in mind.