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Becoming a homeowner can be challenging.
For first-time homebuyers, there is a solution called the Community Affordable Loan. The program is currently piloted for Black and Latino communities as designated by the US Census, according to a Bank of America spokeswoman. Anyone of any race or ethnicity is eligible to apply; eligibility is determined by income and place of residence.
To show a borrower’s ability to repay, the bank looks at data sources like on-time rent and utility payments rather than their credit history.
According to Bank of America, the down payments are covered by $10,000 in non-repayable subsidies.
Tia Fesperman, a Links Realty Group broker, encourages those interested to ask three questions.
“What a good faith estimate gives you is APR, payments, principal insurance versus taxes, and insurance, if you have mortgage insurance,” Fesperman said. “What’s the debt-to-income ratio? Meaning how much debt can I have and still qualify for this loan?”
Finally, what could disqualify you from this loan?
