Credit Repair Commandos

Bank of America Tests No-Down-Payment Mortgages in Black and Hispanic Neighborhoods

By Jenny Gross

The pilot program aims to help first-time buyers in several neighborhoods obtain affordable loans.
Bank of America is offering mortgages for first-time homeowners that do not require down payments, minimum credit scores or closing costs in a program that aims to boost homeownership rates among first-time Black and Latino buyers.

Under the trial program, which was announced on Tuesday, Bank of America will offer loans to people in certain predominantly Black and Hispanic neighborhoods in Charlotte, N.C.; Dallas; Detroit; Los Angeles and Miami. Eligibility for the program, which is called the Community Affordable Loan Solution, is based on income and location, and requires no mortgage insurance.
AJ Barkley, the head of neighborhood and community lending for Bank of America, said the goal of the program was to help individuals and families, particularly Black and Hispanic people, build wealth over time.

“It allows us to revitalize minority communities,” she said in an interview, noting that anyone looking to buy a home in one of the designated neighborhoods could apply for a loan under the program. She said that the bank aimed to expand the program to other cities in the future, and that it was also offering educational resources to help buyers navigate the process.

Black and Hispanic homeowners face a number of additional obstacles when buying homes compared with white homeowners. According to U.S. Census Bureau data for the second quarter of this year, the national Black homeownership rate was at 45 percent, while the rate of white homeownership reached 75 percent.