New Mortgage with ZERO Down, NO Closing Costs, and NO Minimum Credit Score!?

A new home loan program through Bank of America is allowing borrowers to purchase homes in select cities for as little as 0% down, with no closing costs, and no minimum credit score requirements.

All right believe it or not a new home loan program through bank of america is now allowing borrowers to purchase homes again in select cities for as little as zero percent down with no closing costs no minimum credit score and the offer really does sound too good to be true it sounds a lot like 2006. so in today’s episode what i want to do is dig into this

Mortgage product to see whether or not it’s a good debt weapon or resource for those who qualify or potentially a risky resource given the market conditions right now and moving forward so make sure you stick around for today’s video so you heard that right guys bank of america is now offering a mortgage product that has no minimum credit score requirements no

Mortgage insurance and as little as zero percent down now per bank of america this new loan will make home ownership more affordable for borrowers living in minority communities this new mortgage product is for first-time home buyers only and it’s being offered in an effort to address the racial homeownership gap according to the national association of realtors

There’s a homeownership gap between white and black americans that’s almost 30 percentage points while the gap between white and hispanic buyers is almost 20 percentage points so the competitive real estate market and high mortgage rates continue to affect this even further and aj barkley who’s the head of neighborhood and community lending at bank of america said

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In a recent statement that homeownership strengthens our communities it can help individuals and families build wealth over time our community affordable loan solution will help make the dream sustained home ownership attainable for more black and hispanic families and it’s part of our broader commitment to the communities that we serve the community affordable

Loan solution is set to begin in markets where black and latino neighborhoods are overwhelmingly concentrated including charlotte dallas miami detroit los angeles and it really could later expand to additional cities as well while the program focus is getting black and latino borrowers closer to home ownership people of all races may be eligible with eligibility

Being based on income and property location the program does not have a minimum credit score requirement which is unique but is instead considering other factors to qualify like prompt payment of rent or utilities maybe telephone car insurance etc they are requiring prospective buyers to take home buyers certification courses they are provided by select housing

Council partners from bank of america and hud which is uh the housing and urban development we’re going to go and leave a link for that in the description just to make it easy for you guys to find if you want to learn more about this but the question is is the new zero down mortgage from bank of america a good deal for those people who do qualify well buying a

House is an infamously expensive process more so than people will really expect and it’s become a lot more expensive over the years with rising real estate values along with interest rates the current average home price in the u.s is now 428 700 when factoring in modest five percent down payments loan origination fees that can cost as much as one percent of home

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Values along with closing costs that can run as much as six percent of a loan’s value buyers could pay nearly 51 500 up front on a 428 700 home that is not even counting other fees such as underwriting title home inspection appraisal fees offering a loan that does not require down payment mortgage insurance or or closing costs can certainly reduce the barriers of

Entry for home ownership no question about it when you spend less on a down payment and closing costs you obviously may have more money left over in savings to cover major expenses that can come up that need to be taken care of or emergency expenses that may happen after you move in but be aware that making no down payment means that your home loan will cover the

Full cost of the property and your monthly payments are then going to be higher each and every month cutting into your cash flow than if you had money that you could pay up front in order to to dig into that monthly expense now fortunately it doesn’t appear that this program comes with an adjustable rate so there isn’t that whole aspect to worry about where it

Could fluctuate later down the road as we all remember much of the crisis in 2008 came as a result of the adjustable rate mortgages or what they call arms and that gets folks into homes that they could only afford when the rate was low but they really couldn’t afford it once the rate went from low interest rates and started ballooning beyond their reach or or even

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A balloon payment where it’s all due at a certain date so it’s crucial to really enter into a mortgage that you can afford especially when the market is tipping in the direction that it is right now for those getting into homes through this program dramatic decreases in home prices really could force them deep underwater since so little equity was established when

The home was purchased unless you got into a good deal on the front end which is happening less and less could a program like this though well-intentioned result in many losing their homes over time it’s really tough to say for sure but given what we do know in the past and what we know about the current signs we’re seeing ahead loans like this do look increasingly

Risky right now what do you guys think would you apply for this loan program program if you did qualify for it do you think these types of programs do more harm than good let us know in the comments section below would love to hear your thoughts about that thank you as always for watching today’s video and for subscribing to the channel make sure you share the video

Drop a thumbs up for us it helps us a lot in the algorithm until we see on the next one make it a great day and keep on cash flowing see you soon

Transcribed from video
New Mortgage with ZERO Down, NO Closing Costs, and NO Minimum Credit Score!? By VIP Financial Education