New financing options are available to help first-time homebuyers enter the market.
Bank of America has announced a new zero down payment, zero closing cost mortgage solution for first-time homebuyers.
The new loans will be available in designated markets with a focus on serving Black/African American and/or Hispanic Latinx communities.
The first cities eligible for the pilot are Charlotte, Dallas, Detroit, Los Angeles and Miami.
The company’s Community Affordable Loan Solution uses credit guidelines based on factors such as timely rent, utility, phone, and car insurance payments. No mortgage insurance or minimum credit score required.
Individual eligibility is based on income and home location. Prospective purchasers must complete a homebuyer certification course offered by select Bank of America and her HUD-accredited housing counseling partners before applying.
AJ Barkley, Head of Neighborhood and Community Lending at Bank of America, said: “Our community affordable loan solutions help more Black and Hispanic families realize their dreams of sustainable home ownership. is part of a broader effort by
According to the National Association of Realtors, the cost of buying a home is about 80% higher than it was just three summers ago. Combined with high prices, interest rates on mortgages are rising as a result of Federal Reserve rate hikes.
According to Freddie Mac, mortgage rates have almost doubled from a year ago. On September 1, he reached 5.66% for the 30-year interest rate and 4.98% for the 15-year interest rate.
Affordability is the biggest issue in the real estate sector due to the competitive housing market. According to the NAR, black and Hispanic applicants are 7% more likely than white applicants to be denied a mortgage, and the racial disparity among homebuyers is also widening.
There is almost a 30% difference in home ownership among white and black Americans. Black homeownership rates are lower than they were in 2010, according to the NAR.
Hispanic-American homeownership is at a record high, surpassing 50% for the first time.
However, the gap between Hispanic homebuyers and white homebuyers is nearly 20%.
In 2011, Bank of America said its Countrywide Financial Unit charged approximately 200,000 eligible black and Hispanic borrowers higher interest rates and fees “only because of their race or national origin.” agreed to pay $335 million to settle the Justice Department’s claims. New York Times.
In 2019, the bank launched a Community Homeownership Commitment. It proposes to offer options for down payment and closing costs. The goal is to enable affordable housing for 60,000 individuals and families by 2025.
To date, over 36,000 people and families have benefited from the program. Bank of America offers over $9.5 billion in low down payment loans and over $350 million in non-refundable down payment and/or closing cost grants.
To date, two-thirds of loans and grants made through the Community Homeownership Commitment help multicultural clients own a home, according to Bank of America.
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