Bank of America is presenting a special loan offer of a zero down payment and zero closing cost to first-time homebuyers in designated markets, NBC News reports.
The offer is in place to help Black and Hispanic communities grow homeownership and help families receive affordable loans.
Select communities in Charlotte, Dallas, Detroit, Los Angeles, and Miami will be the first to be able to sign up.
Bank of America says applicants do not have to be Black or Hispanic to qualify.
“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. “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.”
The loan offer requires no minimum credit score or mortgage insurance. It assesses credit eligibility based on paying rent on time, utility bills, and auto insurance payments.
Buyers who are interested will have to complete a homebuyer certification course and a U.S. Department of Housing and Urban Development-approved housing counseling partners prior to application.
The offer is a part of Bank of America’s “Community Homeownership Commitment,” a program that plans to help 60,000 individuals and families purchase homes they can afford by 2025.
A homeownership gap remains prevalent in Black and Hispanic communities. According to the U.S. Census Bureau, the Black homeownership rate is 44.2% while White homeownership is 74.5% as of 2020.