If you’re a first-time home buyer, you might want to listen.
Bank of America breaks the mold of buying a home by offering mortgages with no down payment and no closing costs.
They also don’t look at your credit score when it comes to giving you a home loan. *wide eyes emoji*
How does Bank of America extend home loans with no credit check or down payment?
Instead, Bank of America looks at things like your payment history — rent, phone, utilities, etc.
Now it’s a special program put in place by Bank of America.
It is strictly for first-time buyers and the houses in question must be in certain black and Hispanic neighborhoods.
This program is designed to level the playing field when it comes to inequality in the housing market.
The Community Affordable Loan Solution – which is the name of this program – is a test program they are testing in Charlotte, Dallas, Detroit, Los Angeles and Miami.
Other cities may be added to the list of available real estate markets, but Bank of America wants to see how the program works in these 5 cities first.
Now, it’s important to note that you don’t have to be of a certain ethnicity to qualify for one of these loans.
To be considered “eligible” for a home loan, you must meet certain income factors (they can review these with you) and be able to move into one of the Community Affordable Loan Solutions program areas.
Homeownership strengthens our communities and can help individuals and families build wealth over time – Our affordable community loan solution will help make the dream of sustainable homeownership accessible to more families blacks and Hispanics.
A.J. BarkleyHead of Proximity and Community Loans for Bank of America
Won’t this housing program cause another recession?
Many opponents of this special housing program say it will send us straight into another economic housing crash like we saw in 2008.
But, Bank of America says that probably won’t happen. They are cautious and only lend to people who have the resources to make their monthly payments.
Your payment history is going to play a big part in getting a home loan through this program.
They want to see that you 1) have a good track record when it comes to paying your monthly bills and 2) have a steady, reliable income that will keep you on track for a mortgage.
The downside to this program is that because there is no down payment, the new homeowner will not immediately have equity in the home.
But, I’m sticking with it and I’m still paying that mortgage.
It’s a bit like the rabbit and the hare. Slowly but surely, we are succeeding. You won’t have equity very quickly at first, but by being focused and advancing steadily, you’ll have equity (plus a nice house to live in!) in no time.