Communities Of Color Still Face Barriers To Homeownership

Disturbing new research from Zillow shows how Americans without access to credit are blocked out of homeownership, especially in Black neighborhoods. Lack of access to credit keeps many renters stuck in the same routine and paying more than they would if they purchased a home. Zillow notes that in many parts of the country, monthly mortgage payments are less expensive than rent. But credit insecure areas tend to have higher populations of color, especially Black households. The lack of access can be directly tied to racist banking practices that permeated the 20th century. Redlining is an illegal practice where lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of…

BOA Introduces No Down Payment, Closing Cost Mortgage Solution For First-Timers

Bank of America is introducing a zero down payment, zero closing cost mortgage solution for first-time buyers geared towards underserved communities. The Community Affordable Loan Solution will roll out in designated markets, including certain Black and Hispanic/Latino neighborhoods in Charlotte, Dallas, Detroit, LA, and Miami. It is a Special Purpose Credit Program that operates off of factors like timely rent, utility bill, phone, and car payments. It does not require mortgage insurance and a minimum credit score. Eligibility is based on income and home location. Prospective buyers have to complete a homebuyer certification course from approved counseling partners prior to application. The program is in addition to BoA’s existing Community Homeownership Commitment program, which aims to help 60,000 individuals and…