BofA's zero down program aimed at low-income home buyers

Some VA, FHA loans are assumable

Lenders in many states can provide mortgages at below-market rates for first-time buyers, provided that income and home price meet certain guidelines.

The Community Reinvestment Act requires banks to loan money to home buyers whose income level is lower than normally required to qualify for a loan.

Some are applauding BofA's efforts, which include originating more than $15 billion in home loans to low- and moderate-income households since the bank rolled out its first Neighborhood Advantage mortgage in 1990.

"It's been a pretty aggressive effort on their part, "said Fritz Elmendorf, vice president of communications at the Consumer Bankers Association, a retail banking trade group. "They've been a national leader while other banks have struggled to catch up. Some are just going at it to break even. This has been a profitable business for them."

BofA's Smith said the program is part of a 10-year, $140 billion community lending program. Of that total, $37 billion is targeted for low- and moderate-income lending.

Income cap for major cities

BofA said the following cities show the maximum annual income amount according to the Metropolitan Statistical Area limit allowed for home purchase.

Although BofA's program requires less cash to close, the interest rate and the monthly payment may be higher. Here's a comparison with other loans on a $100,000 purchase price. The example assumes average closing costs. Actual costs may vary.