Roommates, if you’ve been thinking of buying a home, now might be the time, thanks to a new initiative by one of the second largest financial institutions in the United States. According to NBC News, Bank of America now offers first-time homebuyers in a select group of cities zero down payment and zero closing cost mortgages. This initiative is intended to help develop home ownership in Black and Hispanic/Latino communities.
Residents living in specific neighborhoods in Charlotte, Dallas, Detroit, Los Angeles, and Miami will be the first to have the opportunity to take advantage. The bank says the new mortgage, called the Community Affordable Loan Solution, is aimed at helping qualified individuals and families get an affordable home loan.
AJ Barkley, Bank of America’s head of neighborhood and community lending, said in a press release, “Home ownership strengthens our communities and can help individuals and families Families build wealth over time.” He added, “Our Community Affordable Loan Solution will help realize the sustainable home ownership dream of more Black and Hispanic families, and it is part of our broader commitment for the communities we serve.”
The BOA provided additional information for potential buyers. Mortgage advisors don’t require mortgage insurance – an additional fee is often charged for buyers who pay less than 20% of the purchase price. Also there is no minimum credit score. Instead, eligibility will be based on factors such as on-time rent payments and on-time bills, including utility, phone, and auto insurance payments.
They also explain potential buyers must complete a homebuyer certification course offered by the organization and federally approved housing counseling partners before applying for the loan program. This initiative is a great way to help people of color, building on the history of Bank Of America. If you recall, Countrywide Financial, a subprime lender that Bank of America bought in 2008, was fined $335 million in 2011 for claiming it charged black and Western homebuyers interest. Hispanic is higher than for white applicants.
Roommate, do you take the opportunity?