Do you need a mortgage to buy your first home in Dallas but can’t afford to pay a massive down payment? You mustn’t worry anymore. Bank of America’s loan program offers you a mortgage with zero down payment and no closing costs.
Down payment and closing costs obstruct your way to buying your first home in Dallas. Suppose you aim to purchase a home with a sales value of $400,000. You must pay 5% of the house’s value upfront and another 5% for closing costs. Additionally, you need to buy private mortgage insurance.
When you add up these costs, it becomes a massive value. A person who barely manages his day-to-day expenses doesn’t have spare cash to make these upfront payments.
Hispanic and African Americans are low-earning groups in the United States. Property prices are skyrocketing. With each passing day, owning a house is becoming a distant dream for families with a moderate income. That’s where Bank of America's loan program in Dallas comes to your help. What is the purpose of this program? This program aims to help first-time buyers buy houses in African American or Latino neighborhoods. It offers them a mortgage loan with zero down payment and no closing costs. The objective is to eliminate the homeownership gap between white Americans and minorities. Historically there has been a vast gap in homeownership in the United States. In 1960, the rate of homeownership in white Americans was 65%, while 38% of African Americans had a house of their own. At that time, the homeowners and the financial institutions discriminated against African Americans. However, in 1968, the Flair Housing Act prohibited such discrimination. Decades have gone passed. Yet, the gap in homeownership between white and African Americans couldn’t be closed. According to the stats of 2018, 72% of white Americans owned a house compared to 42% of African Americans. The situation is also not ideal for Hispanic Americans. Only 47.5% of them had a place of their own in 2018. Bank of America’s loan program can empower marginalized communities in homeownership. What are the requirements for this program? The requirements for this program are straightforward. Unlike other mortgage programs, it doesn’t require a good credit score. Credit score falls between 300 to 850. You need to have your number on the higher side to secure a mortgage. Bank of America’s program in Dallas places no such restrictions. You only need to have a good payment record against your payable bills. For this program, your creditworthiness depends on timely payment of rentals, utility and phone bills, and auto insurance. Additionally, you need to undertake a homebuyer certification course. It educates you on how to settle your current liabilities under this program. It also helps you financially plan for the future to repay the mortgage. You will learn how to save costs and take care of the property. Who is eligible for this program? This loan program is not necessarily for people of color. Any low-income first-time buyer aiming to purchase a house in African American or Hispanic communities is eligible for this program. Conclusion Bank of America’s loan program is an excellent initiative for minorities in Dallas. You can contact a trusted realtor in Dallas, Kayla White if you need assistance or guidance about securing your first home.