If you are a first-time homebuyer, you might want to listen up.
Bank of America is breaking the home buying mold, offering mortgages with zero down payments and no closing costs.
They also don’t look at your credit score when it comes to extending you a home loan. *Wide Eye Emoji*
How Is Bank of America Extending Home Loans With No Credit Check and No Down Payment?
Instead, Bank of America looks at things like your past payment histories — rent, phone, utilities, etc.
Now, this is a special program put out by Bank of America.
It is strictly for first-time homebuyers, and the homes in question must be in certain Black and Hispanic neighborhoods.
This program is designed to even the playing field for inequality in the housing market.
The Community Affordable Loan Solution — which is the name of this program — is a test program that they are trying out in Charlotte, Dallas, Detroit, Los Angeles, and Miami.
It is possible that other cities will be added to the list of available housing markets, but Bank of America wants to see how the program does in these 5 cities first.
Now, it is important to note that you don’t have to be from a certain ethnicity to qualify for one of these loans.
To be deemed “eligible” for the home loan, you have to meet certain income factors (they can go over that with you) and be able to move to one of the areas in the Community Affordable Loan Solutions program.
Homeownership strengthens our communities and can help individuals and families to build wealth over time — Our Community Affordable Loan Solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families.AJ Barkley, head of neighborhood and community lending for Bank of America
Won’t This Housing Program Cause Another Recession?
Many opponents of this special housing program say that it is going to send us right into another economic housing crash like we saw in 2008.
But, Bank of America says that isn’t likely going to happen. They are being careful, and only extending loans to people who have the resources to make their monthly payments.
Your payment history is going to play a big part in acquiring 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 steady, reliable income that is going to make it possible for you to keep up with a mortgage.
The DOWNSIDE to this program is that because there isn’t a downpayment, the new homeowner won’t immediately have any equity in the house.
But, I just stick with it, and keep paying that mortgage.
It’s kind of like the rabbit and the hare. Slow and steady wins the race. You won’t have equity very fast at the beginning, but being focused and steadily moving ahead, you will have equity (plus a great house to live in!) in just a little while.