Bank of America recently announced “zero down payment” loans for first-time homebuyers in predominantly Black and Hispanic neighborhoods who meet certain income requirements, Axios’ Emily Peck writes.
The program launched in late August and the bank’s seen “significant interest already,” a Bank of America spokesperson told Axios.
Why it matters: If the programs proliferate, “then they do have the ability to actually make a meaningful dent in the homeownership gap,” Urban Institute research assistant Liam Reynolds, who co-wrote a piece about these types of programs earlier this year, shared with Axios.
Details: Instead of potential buyers fronting money for a downpayment, BofA is offering grants up to $10,000 for Charlotteans who qualify to put down on the home.
- This means buyers aren’t financing the entire cost of the home, and they get “immediate equity in the home,” a spokesperson told Axios.
Zoom out: These programs are gaining traction now partly because of the renewed focus on racial equity coming out of the protests of 2020 and because of the White House’s support, Peck wrote.
- Back in 2020, BofA and JPMorgan both pledged to spend billions of dollars on racial equity.
How it works: Prospective buyers must complete a homebuyer certification course provided by select Bank of America and HUD-approved housing counseling partners prior to application.
- For more information, please call 1.800.641.8362.
- Anyone can apply.