Bank of America is committing $5 billion to help boost homeownership for “low- to moderate-income and multicultural homebuyers and communities” across the country, the bank announced Tuesday.
According to the bank, it plans to commit an additional $5 billion over the next five years to its Bank of America Neighborhood Solutions program, which “will help more than 20,000 individuals and families thrive through the power of homeownership.”
And as part of the program, Bank of America is rolling out a host of new loan programs and options, including grants of as much as $10,000 to help a borrower close a loan.
One of the new options in the Neighborhood Solutions program, which is set to launch in the second quarter, will see the bank giving “eligible borrowers” as much as $10,000 that can be used toward their down payment or closing costs when they get a Freddie Mac Home Possible mortgage.
Bank of America is also expanding its “America’s Home Grant program,” through which the bank will offer a lender credit of up to $7,500 that can be used towards non-recurring closing costs, like title insurance and recording fees, or to permanently buy down a borrower’s interest rate.
According to the bank, the funds do not require repayment. The bank said that the program is now available in 39 markets and will soon roll out nationwide.
Beyond those programs, Bank of American also offers the “Affordable Loan Solution mortgage,” which is a fixed-rate loan for low- and moderate-income borrowers that features a “competitive rate” with a down payment as low as 3% and no mortgage insurance.
According to the bank, currently, 90% of these loans are for first-time homebuyers.
Additionally, the Neighborhood Solutions program gives borrowers access to down payment and cost savings programs that are offered by state and local agencies, nonprofits, and employers.
“Today, our commitment to affordable and responsible homeownership is greater than ever, with half of our loans going to low- to moderate-income or multicultural families and communities,” said D. Steve Boland, head of consumer lending at Bank of America. “We know many of our clients want the power to own their first home, which can sometimes be challenging. One of the ways we’re helping is through our suite of affordable homeownership solutions and professional resources, which aid them in overcoming barriers and put sustainable homeownership within reach.”