Bank of America is trying to help close the racial wealth gap by helping to close the homeownership gap. They’ve announced a new zero down payment, zero closing cost mortgage solution for first-time home buyers that live in Black and Hispanic/Latino neighborhoods.
In a press release, they said the community affordable loan solution program aims to help eligible individuals and families obtain an affordable loan to purchase a home. It uses credit guidelines based on timely rent payments, utility bills, and phone and insurance payments. It requires no mortgage insurance or minimum credit score and is based on your income and home location.
According to the National Association of Realtors, there’s a nearly 30% gap in homeownership between white and Black Americans. For Hispanic buyers, that gap is 20%. In March of 2021, Bank of America announced that it had increased its $1 billion, four-year commitment to advance racial equality and economic opportunity to $1.25 billion over the next five years.
Click ▶️ to listen to the report from AURN Washington Correspondent Ebony McMorris: