Bank of America is leading the way with a brand new mortgage program targeting low- and medium-income home buyers. The new program is for borrowers who have low income but are a good risk and have a track record of paying their bills.
What it takes to qualify
Bank of America is not offering risky mortgage loans. Low- and medium-income borrowers will still have to document their income, have a history of paying their bills on time, and have a credit score of at least 660. What's new about the program is that is doesn't penalize low-income buyers for being low income. What it does give low-income buyers is a better opportunity to purchase a home.
Low- and medium-income home buyers who are first-time buyers will have to complete mandatory counseling, a requirement of the new program. The idea is to give them the tools and information to become responsible home owners. Bank of America will "hold people’s hands as they go through the process,” said Terry Francisco, a Bank of America spokesman.
Paving the way for others to follow
Although some large banks have offered similar programs for low-income buyers, it's not been offered in the mainstream mortgage market like the Bank of America program. Perhaps this step by Bank of America will encourage other banks to follow their lead in helping more low- and moderate-income consumers.
For more details about the program, visit www.nasdaq.com/article/bank-of-americas-newest-mortgage-low-down-payment-no-fha-20160222-00020
