Are you tired of throwing your money away on rent? Are you ready to take the next step and purchase a home? If so, you may be wondering how you can do this without having to save up for a down payment. It may be a surprise to you to learn that Bank of America has recently launched a no money down, no closing costs mortgage program. In this blog post, we will discuss Bank of America's Affordable Home Solution program and the process to purchase a home without any money down.
The home buying process can be broken down into several steps. Typically, the first step is to find a real estate agent that you trust and let the real estate agent refer a lender to you. This time it will be different. You want to first educate yourself by attending home buying workshops and explore no money down home loan programs.
Bank of America's Home Grant Program Recently Launched in these cities:
- Los Angeles
If your city wasn't mentioned, don't worry. Bank of America says more cities will be announced. In the meantime you can learn as much as possible about the home buying process so you aren't left in the dark when it's your time. The program offers zero down payment, zero closing costs for first-time homebuyers. The program is called the Community Home Loan Solution and aims to help eligible individuals obtain an affordable loan to purchase a home in Black and Hispanic communities.
The most unique feature about this program are the credit guidelines. Normally, home buyers need a 620+ credit score but Bank of America’s program is based on factors such as timely rent, utility bill, phone and auto insurance payments. The home loan program requires no minimum credit score.
Bank of America has committed to offer affordable mortgages, industry leading grants and educational opportunities to help 60,000 individuals and families purchase affordable homes by 2025. Bank of America has provided a phone number of 1-800-641-8362 to learn more about this program. I'm sure they will be swamped with phone calls so hold times will be long. Therefore, I’ll continue to report more information as I get it also be sure to subscribe to our business news and tools. You can also learn more by watching my 2 Hour Home Buying Process Masterclass. We covered how to buy a home from A to Z and how to prepare credit for home, personal, automobile, and business loans.
Steps to Becoming a Home Owner
- Look for a real estate agent that you trust to help you find the perfect home. I recommend searching the most trusted site for REALTORS.
- Educate yourself on the home buying process. Home buying may seem easy but there is a lot to know and understand when buying a home. You want to have some knowledge before working with a real estate agent.
- Find a home that meets your budget and needs. Be sure to search for needs, not wants and stick to a budget.
- Make an offer on the home. Together you and the real estate agent will come up with a price to offer. Many home buyers use to tell me, I want the best price for the house. Unfortunately, good deals are sold before they hit the open market or good deals with lots of equity are for cash buyers only. If you chose a good real estate agent, you should trust their advice about the offer price. Otherwise you will waste a lot of time.
- Once offer is accepted, the loan officer takes over and you'll work with them closely providing updated required documents for the program.
- After offer is accepted, you'll likely have a private inspection on the program. The purpose is so you can become more familiar with the property.
- After inspection, you'll have an appraisal ordered by the lender. This puts a value on the property and compares the price to recent sold, similar houses in the area.
- If appraisal comes in low, the buyers have a few options. 1) cancel the contract, 2) ask the sellers to lower the price. If the appraisal comes in higher, that's great news for you!
- If everything goes well and there are no issues with the property, you'll close on the loan and officially become a home owner! Congratulations!
If you have any questions about the program or the home buying process, check out my Home Buying Workshop for W-2 or Self Employed workers. Also, be sure to check out my other blog posts.
Thank you for reading and please subscribe for updates and subscribe to my YouTube channel where I post new detailed videos weekly.
Do you have concerns about the program? Leave us a comment below and we'll be happy to answer them!
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