Fees, closing costs, down payments – a lot of expenses are associated with obtaining a mortgage. Even if you can afford monthly mortgage payments, coming up with the cash for these other costs can be tricky. And sometimes you want to save money for other uses instead of spending it on a huge down payment. Those tens of thousands of dollars can be put towards retirement, emergency savings, tuition costs, vacations, and more! But the high price tag of down payments and closing costs shouldn’t be a barrier to homeownership – and with Bank of America’s Community Homeownership Commitment™, it doesn’t have to be.
The Community Homeownership Commitment is Bank of America’s program designed to support homeownership and foster community through affordable mortgage products, access to grants, and information on other resources. Some of the benefits of the program include low down payments, cash off your down payment, and cash off your closing costs. When it comes to homeownership, every bit you can save helps, and since Bank of America may be able to save you thousands of dollars, this program is definitely worth looking in to!
Take Down that Down Payment
Imagine saving $10,000 off your down payment! That’s a big chunk of change. Qualified borrowers can receive up to $10,000 off their down payment, or 3% of the purchase price of their home (whichever is the smaller amount). Even if your loan is only $50,000, that’s $1,500 you could get off your down payment. Qualifications include being owner-occupants and meeting specific income limitations. The property also has to be within a specific area. Additional requirements can be found on Bank of America’s website.
Close the Door on Closing Costs
Another opportunity for huge savings – you can get up to $7,500 off your closing costs! This is through the America’s Home Grant, a grant offered by Bank of America. Grants, unlike loans, do not have to be repaid. Eligibility depends on the location of the property, the borrower’s income, and the type of mortgage product. Currently, this grant is only for conventional, FHA, VA, or other low-down payment mortgage programs. Closing costs can be several thousand dollars, creating an additional expense on top of the down payment. Thanks to Bank of America, you may be able to get a bit of a reprieve
Great Grants to Not take for Granted
You may be wondering whether or not your area is one of the locations eligible for these grants. Bank of America’s Down Payment Center lets you search for grants and down payment assistance programs by state. The great thing is that not only does the Down Payment Center show Bank of America’s grants, but it also shows grants, down payment assistance, and closing cost assistance for state and town programs across the nation! For example, residents of Santa Fe county in New Mexico may be eligible for up to $20,000 (that can be used as a down payment) from the Santa Fe Community Housing Trust – Second Mortgage Program. If you don’t see your state or town listed, it doesn’t necessarily mean that there are no options for you. Simply contact a Bank of America lending specialist to discuss options for down payment or closing cost assistance.
Wave Bye Bye to that Lender Origination Fee
Occasionally, Bank of America will have other special offers or programs. For example, for a limited time in 2019, Bank of America will waive the Lender Origination Fee for eligible borrowers. Since origination fees can be a couple thousand dollars, this offer will help make those savings add up. This waiver only applies to the lender origination fee (not other fees associated with loan origination), and is only for Affordable Loan Solution®, VA or FHA mortgages from Bank of America. There are some location restrictions as well – Bank of America states that this offer is not available in Arkansas, Georgia or Oregon. This offer ends on October 31, 2019, so if you want to take advantage of it, hurry!
A More Affordable Mortgage
All these programs and offers are great, but now you’re probably wondering about the mortgage products themselves. Bank of America has lots of great low-down payment and other affordable mortgage options to choose from. One such mortgage is the Affordable Loan Solution® mortgage, which has competitive interest rates and down payments as low as 3% of the purchase price. Unlike FHA loans, mortgage insurance is not required for less than 20% down. If you’re a first-time homebuyer, you may be required to get homebuyer education, but your loan specialist can help you with the specific requirements.
Commitment to the Community
In April of 2019, Bank of America announced a $5 billion initiative for their Community Homeownership Commitment that would help approximately 20,000 borrowers. This initiative is specifically targeted towards low-to-moderate income households and communities as a way of helping them achieve the dream of homeownership. As head of consumer lending D. Steve Boland says, “Today, our commitment to affordable and responsible homeownership is greater than ever, with half of our loans going to low- to moderate-income or multicultural families and communities. We know many of our clients want the power to own their first home, which can sometimes be challenging. One of the ways we’re helping is through our suite of affordable homeownership solutions and professional resources, which aid them in overcoming barriers and put sustainable homeownership within reach.”
Don’t be deterred away from home ownership because of the down payment! Whether you decide to get a grant, down payment assistance, or a low-down payment mortgage (or even a combination of these!), you may find that a mortgage is more affordable than you thought. Learn all about other great down-payment saving programs right here on RateZip!
Want to learn more about Bank of America? This national bank has over 200 years of history, including involvement with some of our favorite childhood Disney movies. Read all about it and check out their mortgage, CD and Savings Rates on RateZip!