Bank of America

announces zero-down payment mortgages for Black and Latino homebuyers

A credit score, which ranges from 300 to 850, aims to assess a person's creditworthiness.

Between Whites and Blacks, there is a homeownership gap of 29 percentage points; for Hispanics, it is 21 percentage points.

In order to encourage more Black and Hispanic/Latino people to become homeowners, Bank of America announced that it is now providing zero down payment, zero closing cost mortgages in a limited number of cities.

The banking giant said this week that the programme does not mandate mortgage insurance, a cost buyers may incur if they put down less than 20% of a home's purchase price or if they have a minimum credit score.

Certain Charlotte, Dallas, Detroit, Los Angeles, and Miami neighbourhoods will be the first to offer the option. According to the bank, the new mortgage, known as the Community Affordable Loan Solution, aims to assist qualified individuals and families in obtaining an affordable loan to buy a home.

The loans have no minimum credit score requirements and do not require mortgage insurance, a fee that is typically added to the purchase price for buyers who put down less than 20%. Instead, criteria for eligibility will include timely rent payments as well as utility, phone, and auto insurance payments.

Based on an individual's income and place of residence, they are eligible. Prior to applying, potential buyers must finish a course for homebuyer certification.

The economists point out that a significant portion of the issue is caused by higher mortgage rates and decreased affordability. Rent, utility, and other financial obligations are taken into account by the programme.

11 Trading Strategies for Beginners

Check the some online stock trading strategies for beginners.