Bank of America to help Black/African American and Hispanic-Latino Communities by issuing easy and affordable loans

Today, Bank of America announced a new mortgage product for first-time homebuyers that requires no down payment and no closing costs. This product will be offered in specific markets, including some Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles, and Miami. In order to help qualified individuals and families buy a home, the Community Affordable Loan SolutionTM was created.

The Community Affordable Loan Solution is a Special Purpose Credit Program that bases its credit requirements on things like on-time rent, phone, utility, and insurance payments. No mortgage insurance or minimum credit score is necessary. Based on an individual’s income and place of residence, they are eligible.

Bank of America also has a 26-year relationship with the Neighborhood Assistance Corporation of America (NACA), through which the Bank has committed to providing an additional $15 billion in mortgages to low-to-moderate income homebuyers through May 2027. According to the National Association of Realtors, today there is a nearly 30-percentage-point gap in homeownership between White and Black Americans; for Hispanic buyers, the gap is nearly 20 percent. And the competitive housing market has made it even more difficult for potential homebuyers, especially people of color, to buy homes.

Before applying, prospective purchasers must pass a homebuyer certification course offered by a select group of Bank of America and HUD-approved housing counseling partners.

This new initiative joins and strengthens Bank of America’s existing $15 billion Community Homeownership CommitmentTM, which aims to provide 60,000 individuals and families with affordable mortgages, grants that lead the industry, and educational opportunities by 2025. Bank of America has already assisted over 36,000 individuals and families in achieving homeownership through this pledge, contributing more than $9.5 billion in low down payment loans and more than $350 million in non-repayable down payment and/or closing cost awards. The Community Homeownership Commitment has helped multicultural customers become homeowners in two-thirds of the loans and grants provided thus far.

“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” said AJ Barkley, head of neighborhood and community lending for Bank of America. “Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families, and it is part of our broader commitment to the communities that we serve.” – Bank Of America