This Bank of America Mortgage Makes Homeownership More Affordable

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Eligible first-time buyers could benefit from this affordable mortgage solution.


Key points

  • Bank of America is committed to providing more affordable homeownership solutions.
  • The bank’s all-new Community Affordable Loan Solution™ is a home loan solution with no down payment or closing costs for eligible first-time buyers.
  • Find out what you need to know about this new mortgage product.

A new Bank of America mortgage could allow more first-time buyers to become homeowners. This new loan product is part of the brand’s commitment to providing more affordable homeownership opportunities. Those who qualify could take advantage of no down payment and no closing costs, making home ownership more accessible.

Bank of America’s mortgage product, the Community Affordable Loan Solution™, could help more Americans realize their dreams of home ownership. This solution offers a more affordable way to buy a property.

Bank of America recently launched a new mortgage product. The Community Affordable Loan Solution™ is a home loan option for first-time buyers. It requires no down payment, no closing costs and no mortgage insurance requirements.

However, this loan will not be available everywhere. It will be available in select markets, including select Black/African American and Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami.

Since down payment and closing costs are financial burdens for many Americans, Bank of America hopes this mortgage will remove some of the financial barriers that keep people from closing on a home.

This loan uses different credit guidelines than other home loans. This includes using timely rents, utility bills, and car insurance payments to determine creditworthiness.

There is no minimum credit score required to qualify. Eligibility is based on income and place of residence. Those wishing to purchase and use this loan must be first-time buyers and complete a homebuyer certification course by a licensed housing counseling partner.

Low-income buyers and POCs face greater challenges

Financial barriers prevent many Americans from buying a home. Low-income families and POCs face greater barriers to becoming homeowners.

According to the National Association of Realtors, homeownership rates vary widely between white Americans and minority Americans.

The homeownership rate for white Americans is 72.1%. But it differs significantly for black and Hispanic Americans. The homeownership rate for Black Americans is 43.4%. For Hispanic Americans, the homeownership rate is 51.1%

Hopefully loan programs like this will make a difference and change those statistics for the better.

If more lenders took the initiative and offered cost-effective mortgage solutions and considered other eligibility requirements, it would be possible for more Americans to buy property.

How to Prepare for Homeownership Fees

Are you planning to buy a house? You want to make sure you are financially prepared. Here are some tips to help you get your finances in order before closing day:

Get rid of debt. Strive to get rid of your debts, especially high-interest debts. This will make it easier for you to invest in your home purchase fund.

Make a plan. Find a way to make your dreams come true. For some, it may be a good idea to get a scramble or find another way to increase their income. Reducing their monthly expenses and increasing their automatic savings contributions may be the best decision for others. Outline and stick to a plan that works for you and your homeownership goals.

Explore loan options. Before you buy, review all of your loan options. If you’re a first-time home buyer, active duty military or veteran, or qualify for other loan programs, you may be able to save money on closing costs, a down payment or other expenses.

If you want to know more, check out our list of the best mortgage lenders.

The Best Mortgage Lender in Ascent in 2022

Mortgage rates are at their highest level in years and should continue to rise. It’s more important than ever to check your rates with multiple lenders to get the best possible rate while minimizing fees. Even a small difference in your rate could reduce your monthly payment by hundreds.

This is where Better Mortgage comes in.

You can get pre-approved in as little as 3 minutes, without a credit check, and lock in your rate at any time. Another plus? They do not charge origination or lender fees (which can reach 2% of the loan amount for some lenders).

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