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If you’re looking to buy a home, now might be a great time to start weighing your options!
Bank of America announced a new initiative to help increase ownership in historically black and Hispanic/Latino communities by offering first-time homebuyers zero down payment and zero closing costs in select cities.
The new mortgage program is called the Community Affordable Loan Solution and will initially launch in certain cities including Charlotte, Dallas, Los Angeles, Miami, and Detroit. It will become more widely available in other states in the future.
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The bank said this new initiative was created in an effort to help families and individuals obtain an affordable loan to purchase a home. Additionally, the loans will not require mortgage insurance or a minimum credit score. Eligibility will be based on factors such as on-time rent payments, utility payments, phone bills, and auto insurance payments. The bank will also require applicants to complete a homebuyer certification course.
NOTE: The program is not limited to Black and Hispanic communities.
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” AJ Barkley, head of neighborhood and community lending for Bank of America, said in a release. “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.”
In 2020, the racial gap between homeownership rates in the United States remained pretty substantial. For white households, the homeownership rate was 72.1% compared to 43.4% for black households and 51.1% for hispanic.
“During the pandemic, rising home prices and low housing supply have disproportionally impacted Black households more than any other race/ethnic group,” the NAR said in a report. White households are now 40% more likely to be able to afford to buy a home compared with Black households, the association said.
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