Our commitment to affordable homeownership
We’re committed to helping homebuyers thrive through the power of homeownership. The Bank of America Community Homeownership Commitment® provides solutions for modest-income and first-time homebuyers, including affordable mortgages, grant programs, resources and expertise.
Affordable Loan Solution® mortgage More homebuying help Visit the Bank of America Down Payment Center to search for programs you may be eligible for, including the America’s Home Grant and Down Payment Grant programs (available in select markets) plus other programs offered by state and local agencies, nonprofits and employers. Loan-to-value ratio (LTV) is the total amount of your mortgage compared to the home’s appraised value, expressed as a percentage. The combined loan-to-value (CLTV) ratio is the ratio of all secured loans on a property to the value of a property. High cost housing markets are designated by government sponsored enterprises, Fannie Mae and Freddie Mac, and represent markets where the average cost of housing is higher than the general market. What credit score does Bank of America require for a mortgage? Bank of America requires a minimum credit score of 600 to qualify for a mortgage. That applies to VA and FHA loans. For a conventional loan from Bank of America, you’ll need a credit score of at least 620. No, down payment assistance grants are not considered taxable income. If you received a Form 1099-MISC and the amount paid is added to your taxable income when you enter it in the 1099-MISC interview, you will have to make an adjusting entry to remove it FHA loans are government-insured loans that could be a good fit for homebuyers with limited income and funds for a down payment. Bank of America (an FHA-approved lender) offers these loans, which are insured by the FHA 1. Minimum credit score of 660 You typically have to sign up to be a bank customer, and there are minimum credit and income requirements to qualify for a loan. Snapshot of a typical bank-issued personal loan: Credit scores accepted: good to excellent. APR range: 5% to 29%. You can check for Bank of America pre-qualification online, but you should know pre-qualification does not mean 100% approval odds. And while the pre-approval check doesn’t lower your score, if you choose to apply for the card your score will take a small hit. The value of credits depends upon the competitiveness of the lending market in a geographical area. Lenders will typically offer small credits, but even generous lenders will rarely exceed a 3-percent credit on closing costs and prepaids. Credit History. Capacity. Capital. Collateral: These are the 4 C’s of credit. First-Time Homebuyer Requirements You’ll generally need to have proof of income for a minimum of two years sufficient to pay the mortgage, a down payment of at least 3.5%, and a credit score of at least 620. You need at least a 620 credit score to buy a house with a conventional loan in 2022. But, you’ll find that there are several other loan types that have much lower requirements. Many first-time home buyers worry that their credit scores are too low to buy a home. Most commonly lenders allow you to lend between 4 and 4.5 times your annual salary ? some will offer 5 times, some 6 and in very, very rare cases, 7 times the amount. In laymans terms, the definition of a first-time buyer is an individual who has never owned a property before. To put it another way someone getting a mortgage who isn’t a homeowner, homemover, buy-to-let investor or just remortgaging is classed as a first-time buyer. No down payment is required for VA, USDA and doctor loan programs detailed above. What credit score do I need to buy a house with no money down? No-down-payment lenders usually set 620 as the lowest credit score to buy a house. This decrease probably won’t show up immediately, but you’ll see it reported within 1 or 2 months of your closing, when your lender reports your first payment. On average it takes about 5 months for your score to climb back up as you make on-time payments, provided the rest of your credit habits stay strong. Conventional mortgages, like the traditional 30-year fixed rate mortgage, usually require at least a 5% down payment. If you’re buying a home for $200,000, in this case, you’ll need $10,000 to secure a home loan. Most credit scores lower by 15 to 40 points after purchasing a home. You may have missed a payment due to the stress of home buying, which could account for the rest of the drop. You’ll want to review your credit report from each of the three credit bureaus to confirm there isn’t a mistake as well. When you buy a home, it’s important to be prepared for your credit score to temporarily drop. This happens any time you pick up a new credit account. But once you get past the initial drop, financially responsible homeownership will likely increase your credit score more than ever before. Buying a home does not improve your credit score. The acts of buying and owning a home do not affect your credit score because your personal assets are not factored into credit score calculations. If you take out a mortgage to buy your home, that can impact your credit score. It’s recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won’t be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments. Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent. Down Payment Grants and Loan Assistance Programs for First-time HomebuyersGood news for aspiring homeowners! Bank of America’s Community Homeownership Commitment® is bringing together products and resources that can help modest-income borrowers buy homes of their own. By combining down payment assistance and closing cost help with a low down payment mortgage, you may find that a new home is within reach.Home grant programsOur America’s Home Grant® program offers a lender credit of up to $7,500 that can be used towards non-recurring closing costs, like title insurance and recording fees, or to permanently buy down the interest rate. The funds do not require repayment.Our Down Payment Grant program offers a grant of up to 3% of the home purchase price, up to $10,000, to be used for a down payment in select markets. Grant Program is available with one mortgage product. Contact a lending specialist for more information. The funds do not require repayment.3% down payment mortgageAffordable Loan Solution® mortgage is a fixed-rate loan with a down payment as low as 3%. Mortgage insurance is required; however, it’s at a reduced cost from most conventional loans. Income limits apply.More homebuying helpVisit the Bank of America Down Payment Center to search for programs you may be eligible for, including the America’s Home Grant and Down Payment Grant programs (available in select markets) plus other programs offered by state and local agencies, nonprofits, and employers. Mortgage Down Payment Center You are invited to apply. Your receipt of this material does not mean you have been pre-qualified or pre-approved for any product or service; you must submit additional information for review and approval. This is not a commitment to lend. If you are refinancing to lower your monthly payment or change from a variable-rate to a fixed-rate loan, you should carefully consider the potential increase in the total number of monthly payments and/or the total interest charges paid over the full term of the new refinance loan – especially for borrowers who currently have loan terms less than 30 years. Disclaimer Down payment and/or closing cost assistance programs may not be available in your area. Down payment and/or closing cost assistance amount may be due upon sale, refinance, transfer, or repayment of the loan, or if the senior mortgage is assumed during the term of the loan. Some programs require repayment with interest, and borrowers should become fully informed prior to closing. Not all applicants will qualify. Minimum credit scores may apply. Sales price restrictions and income requirements may apply. Homebuyer education may be required. Owner-occupied properties only. Maximum loan amounts may apply. Down Payment Center is operated by Bank of America. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Bank of America First-Time Homebuyer Online Edu-Series is a trademark of the Bank of America Corporation. America’s Home Grant, Affordable Loan Solution, Bank of America Community Homeownership Commitment, Bank of America Real Estate Center, Bank of America and the Bank of America logo are registered trademarks of Bank of America Corporation. Freddie Mac and Home Possible are registered trademarks of Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac. First-time Home Buyer Information, Tools and ResourcesSkip to main contentInformation for First-time HomebuyersFirst-time homebuyer? Relax:We’re here to help you through the processfailureGet a call backfrom one of our lending specialistsBy submitting this form, you authorize Bank of America to contact you at the telephone number or email provided here, even if you’ve previously registered on a Do Not Call registry or requested that we not send you marketing information by email. You agree we may use an auto-dialer to reach you. You understand that you are not required to consent to receiving autodialed calls/texts as a condition of purchasing any Bank of America products or services. Any cellular/mobile telephone number you provide may incur charges from your mobile service provider.Buying your first home can be exciting and overwhelming all at the same time – which is why we have a variety of tools and resources to help you through the experience. Whether you’re just starting to save or you already have a house in mind, we can help you get your keys to your first home.Learn about the home-buying processBuying a home: Your 5-step guide See what to expect throughout the home buying process.Understanding various types of mortgages Knowing your options helps you choose the right mortgage.Mortgage prequalification vs. preapproval Find out how much house you can borrow before you start looking.How to apply for a mortgage Found a home? It’s time to gather documents and lock in your rate.Bank of America First-Time Homebuyer Online Edu-Series™ Take the mystery out of buying your first home with our First-Time Homebuyer Online Edu-Series featuring Bank of America specialists with Buzzfeed’s Hannah Williams.Once registered, you’ll get access to videos that you can watch on demand, whenever you want wherever you want. Plus, each video comes with useful resources and tools to help make homebuying easier.Watch nowDown Payment Center Use the Down Payment Center to search for and review down payment and cost-saving programs offered by state and local housing agencies, nonprofit groups and employers that can help make buying a home more affordable.Visit the Down Payment CenterTips for First-time Homebuyers While buying your first home is a big decision, there are also lots of small decisions to make along the way. To help you navigate the process, we’ve gathered suggestions for avoiding some of the most common mistakes.1. Know how much cash you’ll need at closing. When you buy your home, you’ll need cash for a down payment (see how much you should put down) and closing costs (estimate your closing costs). The down payment typically varies from 5% to 20% or more. Putting less than 20% down will typically require you to pay for private mortgage insurance (keep reading for more on that). Closing costs could be about 3-7% of the total loan amount and will include charges such as loan origination fees, title insurance and appraisal fees.2. Budget for private mortgage insurance. For conventional financing, PMI is typically necessary if you don’t make at least a 20% down payment when you buy your home. Make sure you know how much this cost will be and factor it into your monthly home payment budget.3. Research your utilities. If you’re moving into… Low Down Payment Mortgage for First-time HomebuyersOur commitment to affordable homeownershipWe’re committed to helping homebuyers thrive through the power of homeownership. The Bank of America Community Homeownership Commitment® provides solutions for modest-income and first-time homebuyers, including affordable mortgages, grant programs, resources and expertise.Affordable Loan Solution® mortgageThis mortgage offers a 3% down payment and a competitive rate.More homebuying helpVisit the Bank of America Down Payment Center to search for programs you may be eligible for, including the America’s Home Grant and Down Payment Grant programs (available in select markets) plus other programs offered by state and local agencies, nonprofits and employers.What are LTV and CLTV?Loan-to-value ratio (LTV) is the total amount of your mortgage compared to the home’s appraised value, expressed as a percentage.The combined loan-to-value (CLTV) ratio is the ratio of all secured loans on a property to the value of a property.What is a high-cost area?High cost housing markets are designated by government sponsored enterprises, Fannie Mae and Freddie Mac, and represent markets where the average cost of housing is higher than the general market. Bank of America launches zero down payment mortgages to help minorities buy their first homes — here’s who can applyMorsa Images | Digitalvision | Getty ImagesTo help narrow a homeownership gap among Black and Hispanic-Latino communities, Bank of America is launching new zero down payment, zero closing cost mortgage products to help people in minority communities buy their first homes.The program — called the Community Affordable Loan Solution — will be available to certain markets including majority Black and/or Hispanic/Latino neighborhoods, in Charlotte, North Carolina; Dallas; Detroit; Los Angeles; and Miami.The loans are subject to rigorous underwriting and are based on credit guidelines including on-time bill payments including rent, utilities, phone and auto insurance payments. Eligibility is based on income and home location. No minimum credit score or mortgage insurance is required.Applicants do not have to be Black or Hispanic/Latino to qualify for the loans.Before applying, applicants must complete a homebuyer certification course provided by housing counseling partners approved by Bank of America and the Department of Housing and Urban Development.”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,” AJ Barkley, head of neighborhood and community lending at Bank of America, said in a statement.’The problem does exist’The Wall Street bank’s efforts come as research has shown how difficult it can be for minority individuals and families to become homeowners.A recent report from LendingTree found the mortgage denial rate for Black borrowers is twice that of the overall population.”The problem does exist,” Jacob Channel, senior economist at LendingTree, recently told CNBC. “We have data that backs that up.”But there are solutions, and Black homebuyers shouldn’t lose faith that they’ll never be able to become homeowners,” he said.In research from earlier this year, the National Association of Realtors found the homeownership rate for Black Americans is almost 30 percentage points lower than white Americans.As the U.S. homeownership rate climbed to 65.5% in 2020 in the highest annual rise on record, the homeownership rate was 43.4% for Black Americans, 51.1% for Hispanic Americans and 61.7% for Asian Americans, according to the research.Moreover, Black and Hispanic mortgage applicants were more likely to be rejected for loans, each with 7%, compared to white or Asian applicants, at 4% and 3%, respectively, the National Association of Realtors found.More from Personal Finance:Mortgage denial rate for Blacks is twice that of overall population: reportThese bank fees could take a bite out of your budgetNew guaranteed income experiments are taking place across the countryBank of America separately has made a $15 billion community homeownership commitment to help individuals and families purchase affordable homes by 2025. The program includes affordable mortgages, grants and educational opportunities. To date, the program has helped more than 36,000 individuals and families become homeowners. Two-thirds of the program’s loans and grants made through the program have helped multicultural clients become homeowners, according to the firm.Bank of America has also made a separate $15 billion commitment to provide mortgages to low- to moderate-income homebuyers through the Neighborhood Assistance Corporation of America through May 2027.Bank of America also announced the launch of a new small-business… Buying a home is a goal for many Americans. How this bank is helping members of low- and moderate-income communities achieve thatEven as prices for homes soar, the American Dream of owning a home is still alive and well.Yet that can be a high hurdle for first-time home buyers to reach.New data from the National Association of Realtors shows sales of previously owned homes rose by 7% in September as mortgage interest rates declined. However, first-time home buyers made up just 28% of those transactions, the lowest it has been since July 2015.Bank of America, among other financial institutions, is working to help more people become first-time homeowners through an initiative targeting low- and moderate-income communities.The company first started the project, called the Bank of America Community Homeownership Commitment, in 2019. This year, it raised its commitment to $15 billion through 2025, with the goal of helping more than 60,000 individuals and families buy homes.More from Personal Finance:How much house can you afford? What to know before you buy6 reasons why Americans aren’t returning to workWhy this is a difficult market for first-time homebuyersOther banks have established similar funding programs to help residents of underserved communities buy homes.Wells Fargo provides five-year forgivable down payment loans through its NeighborhoodLIFT program to home buyers who live in designated areas and fall under certain income limits. JP Morgan Chase this year expanded its $5,000 grant program to help cover down payments and closing costs in minority neighborhoods around the country. PNC is also offering Closing Cost Assistance Grants that give eligible home buyers credits of up to $5,000.The efforts come as campaigns to end racial discrimination have received national attention after the death of George Floyd. Mortgage lenders historically had a hand in reinforcing racial divisions by participating in official government policy known as redlining, which made it more difficult for non-white residents to purchase homes. However, even after redlining was no longer official policy, non-white mortgage applicants often still faced higher interest rates and neighborhood segregation.To date, Bank of America says it has helped 29,000 home owners buy homes and has given out $270 million in grants. About 85% of those people are first-time home buyers.The program includes two options. The Down Payment Grant program gives eligible buyers 3% of a home’s purchase price up to $10,000, whichever is less, towards a down payment with no repayment required. That funding is available in more than 260 cities and counties.In addition, the America’s Home Grant program provides a lender credit of up to $7,500 towards non-recurring closing costs. That can include title insurance, recording fees or permanently lowering a mortgage interest rate. That grant also does not require repayment, and is available in 800 cities and counties.Because both grants can be combined, eligible home buyers can receive up to $17,500 in aid toward their purchases.The program coincides with Bank of America’s efforts to advance racial equality, including a focus on closing the racial wealth gap among Black and Hispanic-Latino communities for affordable housing as well as other areas like jobs, small businesses and health care.Despite a competitive housing market, data released by Bank of America this week demonstrated that first-time home buyers are not discouraged.Out of 2,000 adults surveyed who currently own a home or plan to own one in the future, 69% said the importance of homeownership has increased in the past year.Meanwhile, 61% of first-generation homeowners said the importance of building equity has increased, versus 39% of non-first-generation homeowners.The market is competitive, so you definitely want to make sure you’re pre-approved.AJ Barkleyhead of neighborhood and community lending at Bank of AmericaThat’s as rents for single-family homes were up 9.3% nationally in August over the prior year, according to CoreLogic.Buying a home can help stabilize monthly expenses through mortgage payments, said AJ Barkley, head of neighborhood and community lending at Bank of America.The pandemic has also inspired prospective… Bank of America: New zero down payment mortgages for first-time buyersBank of America said it is now offering first-time homebuyers in a select group of cities zero down payment, zero closing cost mortgages to help grow homeownership among Black and Hispanic/Latino communities.The option will first become available in certain neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. The new mortgage, called the Community Affordable Loan Solution, aims to help eligible individuals and families obtain an affordable loan to purchase a home, the bank said. Applicants do not have to be Black or Hispanic to qualify for the product, a bank representative said. “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.”The loans require no mortgage insurance — the additional fee typically charged to buyers who put down less than 20% of the purchase price — and no minimum credit score. Instead, eligibility will be based on factors like timely rent payments and on-time utility bill, phone and auto insurance payments. Prospective buyers must also complete a homebuyer certification course provided by Bank of America and federally approved housing counseling partners before they apply for the loan program, the bank said.The racial gap in homeownership rates in the U.S. remained substantial in 2020, the most recent year for which National Association of Realtors data are available.For white households, the homeownership rate was 72.1%. That compares with 51.1% for Hispanic households and 43.4% for Black households. The Black homeownership rate was lower in 2020 than it was in 2010, the NAR said. “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.Bank of America and other major financial institutions like Wells Fargo have checkered histories when it comes to mortgage lending to people of color and prospective buyers who have disabilities. Bank of America’s Countrywide Financial, a subprime lender it purchased in 2008, was fined $335 million in 2011 over claims that it charged Black and Hispanic homebuyers higher interest rates than white applicants.In 2012, Wells Fargo agreed to pay $175 million to settle claims that it targeted people of color with risky home loans that were more expensive. And the city of Miami sued JPMorgan Chase in 2014, accusing the bank of predatory lending in communities of color.Rob Wile is a breaking business news reporter for NBC News Digital. Bank of America to offer zero-down payment mortgages in certain Black and Hispanic communities 03:30 – Source: CNN Black couple sues for housing discrimination after experiment yields shocking result CNN — Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in a new program designed to chip away at inequality in the housing market. The new loan, launched this week, requires no minimum credit score nor mortgage insurance, which lenders typically charge when borrowers put less than 20% down. Instead of a traditional credit score, first-time homebuyers will be evaluated based on their history of making timely payments for rent, utilities, phone service and auto insurance. Bank of America said the new mortgage, known as the Community Affordable Loan Solution, is available in certain census-designated markets including Black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. The bank said borrowers do not need to be Black or Hispanic to qualify. Eligibility is based on borrower income and home location. “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 statement. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families.” A Bank of America spokesperson told CNN the bank will consider how to expand the program to other cities after an initial assessment. The move by one of the nation’s largest lenders comes at a time when skyrocketing home prices have threatened to deepen the alarming divide between White homeownership and that of minorities. Black homeownership stood at just 43.4% at the end of 2020, according to the most recent statistics available from the National Association of Realtors. That is lower than the rate a decade earlier. The Hispanic homeownership rate has climbed to a record high of 51.1%, according to the NAR. However, both rates are still well below the White homeownership rate of 72.1%. The biggest obstacle to buying a home for low and moderate-income homebuyers is having enough cash for down payments and closing costs, according to Boston College Law School professor Patricia McCoy. “This obstacle disproportionately adversely affects Black and Hispanic-American homebuyers,” McCoy, a former federal regulator, said in an email to CNN. The racial divide is even more concerning given the fact that homeownership has long been a way to build wealth in America. A year ago the Biden administration announced several recommendations to close the racial homeownership gap. Earlier this year, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, unveiled a sweeping plan to address discrimination in access to homeownership. Among the recommendations were down payment assistance, lower mortgage insurance premiums and a credit reporting system that factors in rent payment history. It also suggested increasing the use of special purpose credit programs, which is what the Bank of America loan is. These credit programs enable lenders to offer loans with favorable terms to borrowers who have suffered economic damages or who share common characteristics like low income, race…
This mortgage offers a 3% down payment and a competitive rate.
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Down Payment Grants and Loan Assistance Programs for First …
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First-time Home Buyer Information, Tools and Resources
Low Down Payment Mortgage for First-time Homebuyers
>6:49Are you looking for a TRUE grant program, well Bank of America's Grant Program may be Exactly what you are looking for. A Great Grant for …YouTube · Shaheedah Hill · Jan 27, 20225 key moments in this videoBank of America to help minorities buy first homes … – CNBC
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Bank of America to offer zero-down payment mortgages … – CNN