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Bank of America Helps Minorities Buy First Homes with New Mortgages

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To close the homeownership gap between the Black and Hispanic-Latino communities, Bank of America is launching a new zero down payment, zero closing cost to help people in minority communities buy their first homes. is launching a home loan product.

Called the Community Affordable Loan Solution, the program is available in select markets, including predominantly Black and/or Hispanic/Latino neighborhoods located in Charlotte, North Carolina. Dallas; Detroit; Los Angeles; and Miami.

Loans are subject to strict underwriting and based on credit guidelines including timely payment of bills including rent, utilities, phone and car insurance payments. Eligibility is determined by income and residence. No minimum credit score or mortgage insurance required.

Applicants do not have to be Black or Hispanic/Latino to be eligible for the loan.

Before applying, applicants must complete a homebuyer certification course offered by a housing counseling partner approved by Bank of America and the Department of Housing and Urban Development.

“Our community-friendly affordable loan solutions help more Black and Hispanic families realize their dreams of sustainable home ownership. It’s part of a broader commitment to the community,” Bank of America said in a statement.

Gross mortgage demand fell 1.2% to 22-year low

“Problem exists”

The Wall Street bank’s efforts come as research shows how difficult it is for minority individuals and families to become homeowners.

According to a recent report from LendingTree, black borrowers have twice the mortgage rejection rate of the general population.

“There are certainly problems,” LendingTree senior economist Jacob Channel recently told CNBC. “We have data to back it up.

“But there is a solution. Black homebuyers should never lose their faith that they can never be homeowners,” he said.

In a study earlier this year, the National Association of Realtors found that black Americans own homes about 30% less often than white Americans.

Homeownership rates in the U.S. rose to 65.5% in 2020, a record annual increase, according to a study, with homeownership rates rising to 43.4% for Black Americans, 51.1% for Hispanic Americans, and 51.1% for Asian Americans. 61.7% of Americans.

Additionally, Black and Hispanic mortgage applicants were more likely to be denied a loan, at 7% each, while white or Asian applicants were at 4% and 3%, respectively, according to the National Association of Realtors. discovered.

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Bank of America is dedicated to a $15 billion community home ownership initiative to help individuals and families buy affordable homes by 2025. The program includes affordable mortgages, grants, and educational opportunities. To date, the program has helped over 36,000 individuals and families become homeowners. According to the company, two-thirds of his loans and grants made through the program help multicultural clients become homeowners.

Bank of America also made a separate commitment of $15 billion through May 2027 to provide mortgages to low- to middle-income homebuyers through Neighborhood Assistance Corporation of America. going.

Bank of America also announced the launch of a new small business down payment program aimed at helping minority and female business owners gain credit and purchase commercial real estate through grants. did. The program will launch in Atlanta, Chicago, Charlotte, Dallas and Los Angeles. There are plans to expand to other markets in 2023.

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