Bank of America has announced that it’s about to roll out a $5 billion affordable homeownership initiative for low- to moderate-income and multicultural homebuyers and communities across the US.
BoA said it would commit the $5 billion over the next five years to its Bank of America Neighborhood Solutions program, aiding over 20,000 individual and families in buying their homes.
The program focuses on helping people afford sustainable homes through a combination of specially-designed products, resources, and expertise. The products and services included in the program can be used individually or in combination.
The Neighborhood Solutions program includes:
- New down payment and closing cost program – a program that will give eligible borrowers up to $10,000, which can be used to pay their down payment or closing costs when they get a Home Possible mortgage.
- America’s Home Grant program – a program that currently offers a lender credit of up to $7,500, which can be used towards non-recurring closing costs, including title insurance and recording fees, or to permanently buy down the interest rate. The funds, which do not need repayment, are available in 39 markets today and will soon extend nationwide.
- Affordable Loan Solution mortgage – a fixed-rate loan for low- and moderate-income borrowers. It offers a competitive rate with a down payment of as little as 3% and no mortgage insurance.
- Freddie Mac Home Possible mortgage – a fixed-rate loan with a down payment as low as 3% and lower-cost mortgage insurance.
- Access to a down payment and cost savings programs offered by state and local agencies, nonprofits and employers.
“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 Steve Boland, head of consumer lending at Bank of America. “We know many of our clients want the power to own their first home, which can sometimes be challenging. One of the ways we’re helping is through our suite of affordable homeownership solutions and professional resources, which aid them in overcoming barriers and put sustainable homeownership within reach.”