On Tuesday, in Charlotte, Los Angeles, Miami, Detroit, and Dallas, Bank of America announced a new program that does not require a downpayment and closing costs for first-time homeowners moving into these Black and Latino communities.
The new program, called the Community Affordable Loan Solution, was put in place to assist people in getting an affordable loan to buy a house. The Loan Solution will not require typical factors in purchasing a home like mortgage insurance and a minimum qualified credit score. Bank of America will now base eligibility on income and timeliness manor on rent, utility bills, phone, and auto insurance payments.
“This new program is in addition to and complements Bank of America’s existing $15 billion Community Homeownership Commitment to offer affordable mortgages, industry-leading grants, and educational opportunities to help 60,000 individuals and families purchase affordable homes by 2025,” said Bank of America.
However, Bank of America also said that before applying, potential homebuyers would have to complete a homebuyer certification course provided by the Bank and HUD-approved housing counseling partners.
Referenced in the bank’s statement, The National Association of Realtors disclosed a 30 percent difference in homeownership between White and Black Americans. The gap is a little smaller for Hispanic owners at approximately 20 percent.
Trying times brought on from the Covid-19 pandemic and a challenging market have made it difficult for Americans to buy homes. Black buyers have been singled out the most from all other races.
