Bank of America (BoA) announced Wednesday that it would triple its $15 billion commitment in affordable housing over the next five years.
In 2019, the second-biggest US lender launched the Bank of America Community Homeownership Commitment – a $5 billion initiative that aims to help 20,000 low- and moderate-income homebuyers through affordable loans and over $180 million in down payment and closing cost grants. The company said that it surpassed this commitment, and in doing so has supported nearly 21,000 individuals and families in purchasing a home.
“Homeownership is an incredibly powerful force, helping families to build wealth over time and strengthening our communities. It can be challenging to save enough to buy a home, so it’s no surprise that we’ve seen an overwhelmingly positive response to our programs. We are excited about our goal of helping an even greater number of home buyers to prepare for homeownership now and in the future,” said D. Steve Boland, president of retail at Bank of America.
The new $15 billion investment intends to reach 60,000 new homebuyers and includes down payment and closing cost grants which offers lender credit of up to $7,500. When used together, the grants can provide customers around $14,000 to help with their home purchases.
BoA claims that half of its home loans are to low- and moderate-income or multicultural families and communities. But according to data from Inside Mortgage Finance, jumbo loans for wealthy borrowers make up more than two-thirds of the bank’s $237 billion mortgage portfolio as of September.
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