Bank of America Launches $5 Billion Affordable Homeownership InitiativeSource: Business Wire
Program Will Help More Than 20,000 Individuals in Low- and Moderate-Income Communities Realize Their Goal of Homeownership
Bank of America’s Neighborhood Solutions program focuses on helping put people on the path to affordable and sustainable homeownership through a combination of specially-designed products, resources and expertise. The program includes: a new down payment and closing cost assistance option, innovative low down payment mortgages, grants that can be applied to non-recurring closing costs, a national network of dedicated lending professionals, easy-to-understand financial education tools, strategic partnerships with real estate professionals, and a national network of knowledgeable affordable housing nonprofit partners who provide in-depth homebuyer education and counseling.
“Today, our commitment to affordable and responsible homeownership is
greater than ever, with half of our loans going to low- to
moderate-income or multicultural families and communities,” said
Bank of America’s Neighborhood Solutions, which can be used individually or in combination, include:
A new down payment and closing cost program – launching in the
second quarter of 2019, this program will help customers overcome the
biggest barriers to homeownership. The bank will give eligible
borrowers up to
$10,000to be used toward their down payment or closing costs when they get a Home Possible mortgage.
America’s Home Grant® program – this program has been expanded
and now offers a lender credit of up to
$7,500that can be used towards non-recurring closing costs, like title insurance and recording fees, or to permanently buy down the interest rate. The funds, which do not require repayment, are available in 39 markets today and will soon be nationwide.
- Affordable Loan Solution® mortgage – this fixed-rate loan for low- and moderate-income borrowers offers a competitive rate with a down payment as low as 3 percent and no mortgage insurance. Today, 90 percent of these loans are to first-time homebuyers.
- Freddie Mac® Home Possible® mortgage – this is a fixed-rate loan with a down payment as low as 3 percent and lower-cost mortgage insurance.
- Access to down payment and cost savings programs offered by state and local agencies, nonprofits and employers.
We serve low- and moderate-income clients’ and communities’ homeownership needs through multiple channels, including through financial centers across the country and our Digital Mortgage Experience. In fact, one-third of our financial centers are located in low- to moderate-income areas. Of those, half are designated as community financial centers and have resources tailored specifically to the communities they serve.
Reporters May Contact:
Terry Francisco, Bank of America, 213.345.9024
Kris Yamamoto, Bank of America, 805.526.1910