CHARLOTTE, N.C.–Bank of America is piloting a new program that offers mortgages to Black and Latino first-time homeowners that do not require down payments, minimum credit scores or closing costs.
The objective is to boost homeownership rates among both groups.
Under the trial program, Bank of America said it will offer loans to people in certain predominantly Black and Hispanic neighborhoods in Charlotte, 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, BofA said.
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” AJ Barkley, head of neighborhood and community lending for Bank of America, said in statement. “Our Community Affordable Loan Solution 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.”
Additional Obstacles
In its report, the New York Times noted Black and Hispanic homeowners face a number of additional obstacles when buying homes compared with white homeowners. The national Black homeownership rate stayed near 42% from 2016 to 2019, the lowest since 1970, while the rate of white homeownership reached 73%, a record high, according to the National Community Reinvestment Coalition data cited by the Times.
In 2019, 58% of Asians and 47.5% of Latinos were homeowners.