Bank of America Announces Zero Down Payment, Zero Closing Costs for First Time Homebuyers

Yes, you read the headline correct. Bank of America announces zero down payment, zero closing cost mortgages for Black and Hispanic communities.

According to NBC News, the option will first become available to neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. This new mortgage program is called the Community Affordable Loan Solution and aims to help eligible individuals who want to partake in home ownership obtain an affordable loan to purchase a home.

via NBC News...

“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” AJ Barkley, head of neighborhood and community lending for Bank of America, said in a release. “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.”

This is really great news as the new loan won't require mortgage insurance for those who purchase their homes with less than 20% down of the purchase price nor will it require a minimum credit score. Instead, the loan will be based on the homeowners on time rent, utility, phone and auto insurance payments. Other requirements include the prospective home buyer completing a homebuyer certification course provided by Bank of America and federally approved housing counseling partners before they can even apply for the program.

I'm truly excited about this news and can't wait till it reaches other areas including my hometown Atlanta. This will be such a great way to help those who didn't think home ownership was possible for them to truly make it happen.

As a real estate agent, it will definitely be something really great for me to assist my clients with in the future when this Bank of America program makes its way to my market here in Atlanta. I'll definitely keep you all posted.

As always. Happy House Hunting.