Homeownership can be a challenge for low- and moderate-income households that struggle to save the cash needed for a down payment and closing costs.
Bank of America’s program includes a Down Payment Grant component and America’s Home Grant program, which covers some closing costs. Since the program was launched, Bank of America has helped nearly 21,000 individuals and families buy homes with affordable loans and has provided more than $180 million in down payment and closing-cost grants. The bank’s new goal is to help more than 60,000 individuals and families purchase a home by 2025.
When the two grant programs are used together, home buyers receive an average of $14,000 to help with their home purchase. In addition, many of these buyers choose a fixed-rate, low-down-payment mortgage to keep upfront purchase costs low. Some of the bank’s loan programs have a down payment requirement as low as 3 percent and require little or no mortgage insurance. Approximately 85 percent of those loans are given to first-time home buyers.
The Down Payment Grant program, available in more than 260 cities and counties in the United States, provides up to $10,000 or 3 percent of the home’s purchase price, whichever is less. No repayment is required.
The America’s Home Grant program offers a lender credit of up to $7,500 to use toward closing costs such as title insurance or recording fees. It can also be used to buy down the interest rate permanently. No repayment is required.
In addition to these programs, the Bank of America Real Estate Center helps prospective buyers find grant-eligible properties.
Buyers can also learn about buying and financing a home through the First-time Homebuyer Online Edu-Series, which is available in English and Spanish.
For more information, visit https://realestatecenter.bankofamerica.com/ and https://mortgage.bankofamerica.com/affordable-lending.
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