Roommates, if you’re thinking of buying a home, now might be the time, thanks to a new initiative from one of the second-largest financial institutions in the United States. According to NBC News, Bank of America is now offering first-time homebuyers mortgages with no down payment and no closing costs in a select group of cities. The initiative aims to help increase home ownership in Black and Hispanic/Latino communities.
Residents living in certain neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami will be the first to have the opportunity to take advantage. The new mortgage, called the Community Affordable Loan Solution, is designed to help eligible individuals and families get affordable home loans, the bank says.
AJ Barkley, director of neighborhood and community lending at Bank of America, said in a press release, “Home ownership strengthens our communities and can help individuals and families build wealth over time.” He added, “Our Community Affordable Loan Solution will help realize the dream of sustainable home ownership for more Black and Hispanic families and is part of our broader commitment to the communities we serve.”
BOA provided additional information to potential buyers. The institution notes that loans don’t require mortgage insurance — the extra fee typically charged to buyers who deposit less than 20% of the purchase price. Also, no minimum credit rating. Instead, eligibility is based on factors such as on-time rent payments and on-time bills, including utility, phone, and car insurance payments.
They also explained that prospective buyers must complete a homebuyer certification course offered by the institution and state-approved housing counseling partners before they can apply for the loan program. Given Bank Of America’s history, this initiative is a great way to help people of color. If you recall, Countrywide Financial, a subprime lender bought by Bank of America in 2008, was fined $335 million in 2011 for allegations that it charged black and Hispanic homebuyers higher rates than whites applicants.
Roommates, you will seize the opportunity?
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