Bank of America launches zero-down mortgage for Black, Latino borrowers – By Khistopher J Brooks (Moneywatch) / Sept 1, 2022
Black and Hispanic homebuyers can get a mortgage from Bank of America without a down payment or closing costs under a new program the company is offering in five U.S. cities that aims to address the racial homeownership gap.
The program, announced this week, is geared toward first-time homebuyers of color in Charlotte, Dallas, Detroit, Los Angeles and Miami. Bank of America said applicants under this program will not have their credit score taken into account when applying for a home loan. Instead, loan processors will look at if the applicant has paid their rent, phone, auto insurance or utility bills on time.
The program, announced Tuesday, is intended to help Black and Hispanic families own a home and start building wealth, according to AJ Barkley, Bank of America’s head of neighborhood and community lending. “What we don’t want to do with this program is place people in homes they cannot stay in,” Barkley told Bloomberg News.
Black and Hispanic families typically don’t have a large stash of cash on hand to fund a home down payment and closing costs, so Bank of America removing those barriers will certainly help someone on the hunt for home, Indiana University finance professor Jun Zhu told CBS News.
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