This Bank of America Mortgage Makes Homeownership More Affordable

Eligible first-time buyers could benefit from this affordable home loan solution. 

A new Bank of America mortgage could make it possible for more first-time buyers to become homeowners. This new loan product is part of the brand's commitment to providing more affordable homeownership opportunities. Those who qualify could take advantage of zero down payment and zero closing costs requirements -- making homeownership more attainable. 

Bank of America's mortgage product, the Community Affordable Loan Solution™ could make it easier for more Americans to make their homeownership dreams a reality. This solution offers a more affordable way to buy property. 

Introducing the Community Affordable Loan Solution™

Bank of America recently introduced a new mortgage product. The Community Affordable Loan Solution™ is a home loan option for first-time buyers. It requires zero down payment, zero closing costs, and has no mortgage insurance requirements. 

However, this loan won't be made available everywhere. It will be available in select markets, including some Black/African-American and Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles, and Miami. 

Since down payment and closing costs are financial burdens for many Americans, Bank of America hopes this mortgage will eliminate some financial barriers that keep people from closing on a home. 

This loan uses different credit guidelines than other home loans. This includes using timely rent, utility bills, and auto insurance payments to determine creditworthiness. 

There is no minimum credit score needed to qualify. Eligibility is based on income and home location. Those who want to buy and utilize this loan must be first-time buyers and complete a home-buyer certification course by an approved housing counseling partner. 

Low-income buyers and POC face greater challenges 

Financial hurdles keep many Americans from buying a home. Low-income families and POC face greater barriers to becoming homeowners.

According to the National Association of Realtors, homeownership rates vary significantly between White Americans and minority Americans. 

The homeownership rate for White Americans is 72.1%. But that differs significantly for Black and Hispanic Americans. The homeownership rate for Black Americans is 43.4%. For Hispanic Americans, the homeownership rate is 51.1% 

Hopefully, loan programs like this will make a difference and change those statistics for the better. 

If more lenders take the initiative and provide cost-saving mortgage solutions, and consider alternative eligibility requirements, it would be possible for more Americans to buy property. 

How to prepare for the costs of homeownership

Are you considering buying a home? You want to make sure you're prepared financially. Here are some tips to help you get your finances in order before closing day arrives:   

Get rid of debt. Work to get rid of your debt -- especially high-interest debt. Doing this will make it easier for you to put more money towards your home-buying fund.

Make a plan. Figure out a way to make your dreams a reality. For some, it may make sense to get a side hustle or find another way to boost their income. Reducing their monthly spending and increasing their automatic savings contributions may be the best move for others. Outline and stick to a plan that works for you and your homeownership goals. 

Explore lending options. Before buying, look into all of your lending options. If you're a first-time buyer, an active-duty military member or veteran, or qualify for other lending programs, you may be able to save money on closing costs, a down payment, or other expenses.  

If you're interested in learning more, check out our list of best mortgage lenders.