Bank of America said that it will no longer require down payments on loans in five U.S. cities with mostly Black and Hispanic neighborhoods.
Bloomberg says that Bank of America's new program is aimed at helping first-time homebuyers in Black and Hispanic neighborhoods. It does this by offering mortgages with no down payments, closing costs, or minimum credit scores. There will also be no need for mortgage insurance on these loans.
"In certain Black/African American and/or Hispanic-Latino neighborhoods" in five U.S. cities—Detroit, Miami, Los Angeles, Dallas, and Charlotte, North Carolina—the trial program is being put into place.
Community Affordable Loan Solution is the name of the program. Eligibility will not be based on a person's credit score, but on a number of other factors, such as how well they have paid their rent or utility bills in the past.
The bank's head of neighborhood and community lending, AJ Barkley, said, "Our Community Affordable Loan Solution will help will help make the dream of sustained homeownership attainable for more Black and Hispanic families, and it is part of our broader commitment to the communities that we serve.”
Bloomberg said that the Bank of America "wouldn't disclose the planned size of the program, which may be expanded later to other cities.”
The news source also said, "Under the BofA program, the lender gives homebuyers down-payment grants of $10,000 to $15,000 so they can start building equity in their homes right away."
Bank of America also recently announced a program called the "Small Business Down Payment Grant Program." The goal of this program is to "extend credit to historically disadvantaged small business borrowers" and "help create generational wealth opportunities for minority and women business owners."
The preceding is a summary of an article that originally appeared on BREITBART.
