Detroiters Can Apply For Zero down, Zero Closing Mortgages Through Bank Of America

DETROIT — Bank of America announced Tuesday it is launching a new mortgage program that aims to grow homeownership in Black and Hispanic/Latino communities, including some in Detroit.

The Community Affordable Loan Solution gives Detroiters in certain neighborhoods the chance to buy their first home with zero down and zero due at closing. Applicants, however, do not have to be Black or Hispanic to qualify for the mortgage, the bank said.

"Homeownership strengthens our communities and can help individuals and families to build wealth over time," the head of neighborhood and community lending for Bank of America AJ Barkley said in a news release. "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."

Detroiters applying for the loans will not be charged a mortgage insurance fee, which is typically added when the potential homebuyer puts less than 20 percent down on the purchase price. In addition, the loans will not require a minimum credit score.

Rather, the bank will determine eligibility based on timely rent and utility payments, as well as auto insurance payments. The bank will also require potential buyers to complete a homebuyer certification course provided by Bank of America and federally approved housing counseling partners before they apply for the loan program, the bank said.

Certain neighborhoods in Charlotte, Dallas, Los Angeles and Miami are also eligible for the loans.

Not only did the racial gap in homeownership remain high in 2020, but Black homeownership actually decreased in 2020 from where it was in 2010, according to the National Association of Realtors.

"During the pandemic, rising home prices and low housing supply have disproportionally impacted Black households more than any other race/ethnic group," the NAR said in the report.

Moreover, a separate study found an alarming increase in the number of loan records that lacked demographic data on race and ethnicity. Furthermore, the National Community Reinvestment Coalition found that Black and Hispanic borrowers bought less valuable homes than White (and some Asian) borrowers, and they paid more to do so.