Bank of America is upping the ante on its efforts to extend mortgages to more cash-strapped homebuyers and that includes $0 lender origination fees and credits that don’t have to be repaid to borrowers with certain no- or low-down payment mortgages.
The goal is to help homebuyers who may not have a lot of up-front cash to pay the initial homebuying costs get into a mortgage they’re perfectly capable of repaying.
The new $0 lender origination fee program is available to borrowers who apply for a mortgage through Bank of America by Oct. 31, 2019. The offer applies to four loan programs: government-insured VA and FHA loans, Bank of America’s Affordable Loan Solution mortgage and the Freddie Mac HomePossible mortgage.
Borrowers can combine the limited-time offer (or use it individually) with one of the following loan programs:
- America’s Home Grant program — Newly expanded, this Bank of America program now offers a lender credit of up to $7,500 that doesn’t have to be repaid. The credit can be used to permanently buy down the interest rate or towards non-recurring closing costs, such as title insurance and recording fees, or to permanently buy down the interest rate. The grants are available in 39 markets and will be expanded nationwide.
- Affordable Loan Solution mortgage — This fixed-rate mortgage is Bank of America’s own 3 percent down payment mortgage for low- and moderate-income borrowers. It offers a competitive rate and doesn’t require mortgage insurance.
- Freddie Mac HomePossible mortgage — Backed by one of the nation’s two mortgage powerhouses, this fixed-rate loan features a down payment as low as 3 percent and lower-cost mortgage insurance.
- Down payment and closing cost assistance programs offered by state and local agencies, nonprofits and employers.
The announcement comes just weeks after Bank of America announced an investment of $5 billion into its Neighborhood Solutions program. The goal is to help more than 20,000 low- and moderate-income borrowers buy a house by giving them up to $10,000 toward down payment or closing costs. With the exception of VA and FHA loans, the Neighborhood Solutions program also can be combined with the same loan programs listed above.