Bank of America selected Dallas and four other cities to pilot a new nationwide program aimed at helping first-time homebuyers in the Black and Latino communities.
Community Affordable Loan Solution provides mortgages with no down payment or closing costs. Credit guidelines for this program are based on factors such as timely rent, utility bills, phone and car insurance payments, and do not require mortgage insurance or a minimum credit score.
Available to African American/Black and Hispanic/Latino communities in Dallas, Charlotte, Detroit, Los Angeles and Miami as defined by the US Census.
“Homeownership strengthens our communities and helps individuals and families build wealth over the long term,” said AJ Barclay, head of neighborhood and community lending at Bank of America, in a statement. “Our community affordable loan solutions help more Black and Hispanic families realize their dreams of sustainable home ownership. It is part of a broader effort to
Eligibility is determined by income and residence. Prospective purchasers must complete a homebuyer certification course offered by Bank of America and her HUD-accredited housing counselor her partner before applying.
The program adds to the bank’s existing $15 billion effort to make homes available to 60,000 individuals and families by 2025 through affordable mortgages, grants and educational opportunities. It is a thing. The bank has helped more than 36,000 homebuyers to date, with $9.5 billion in low down payment loans and he has provided over $350 million in down payment and closing cost grants.
Racial disparities have long existed in home ownership.according to A report from the National Real Estate Association earlier this year, the homeownership rate for white Americans has been consistently around 70% since 2017. During the same period, only 41% of blacks and 47% of Hispanics owned a home.
Blacks are the only racial or ethnic group with lower home ownership rates than they did a decade ago, says the NAR report.
Bank of America also announced the launch of another program for minority and female business owners, allowing them to purchase commercial real estate through grants. It will be launched in Chicago, Charlotte and Los Angeles, with expansion planned for next year.
The bank ranks second in market share for Dallas-Fort Worth deposits, behind Charles Schwab. The Charlotte-based bank had $130.8 billion in deposits and 137 offices in D-FW as of June 30, 2021. Latest data available from Federal Deposit Insurance Corp.