Bank of America seeks to expand access to housing in Latino-Hispanic and African-American communities through an affordable loan program.
The bank recently announced the implementation of a new zero-down-payment, zero-closing-cost mortgage solution for first-time homebuyers in certain designated neighborhoods, including select Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. The goal of the program is to help eligible families and individuals obtain an affordable loan to purchase a home.
Called the Community Affordable Loan Solution, this program uses credit guidelines based on factors such as paying rent on time, paying utilities, phone, and car insurance. This way, there is no need for mortgage insurance or a minimum credit score.
Eligibility for families and/or individuals is based on criteria such as income and home location, as well as completion of a home buyer certification course by the bank.
This action falls under another program called the Community Homeownership Commitment, which provides affordable mortgages and educational opportunities for affordable homeownership. Currently, it has benefited more than 36,000 people and families to obtain a home and the objective plan is to benefit 60,000 people by 2025.
According to the National Association of Realtors, the home ownership gap between Americans and Hispanics is almost 20%, so they seek to facilitate access to affordable housing for this population, the same for the African-American population.
“Homeownership strengthens our communities and can help individuals and families build wealth over time,” said AJ Barkley, director of neighborhood and community lending at Bank of America. He also explained that the solution will help more African-American and Hispanic families to acquire their first home.
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