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Hispanics and African- Americans have a new incentive to get a home with no down payment and more!

Bank of America is launching a new mortgage product that would allow first-time homebuyers of all races to purchase a home with no down payment, no mortgage insurance and zero closing costs.

In an effort to close the racial homeownership gap, the Community Affordable Loan Solution will launch in markets with predominantly Black and Hispanic neighborhoods, including Charlotte, Dallas, Detroit, Los Angeles and Miami, and may later expand to other cities. It will not require a minimum credit score and will instead consider other factors for eligibility.

Is Bank of America’s new zero-down mortgage worth it?

Home buying is a notoriously expensive process and has gotten even more costly as property values have increased over the years. When you consider a modest 5% down payment, lender fees, which can run you up to 1% of the home’s value, and closing costs, which can be as high as 6% of the loan’s value, buyers can pay close to $46,800 upfront for a $400,000 home — this still excludes other charges like the underwriting fee, title check, home inspection and appraisal fees.

Offering a loan that doesn’t require a down payment, mortgage insurance or closing costs could lower the barrier to entry for homeownership. And when you spend less money on down payment and closing costs, you can reserve more of your savings for paying for serious home repairs that need to be taken care of, or emergency expenses that could arise as soon as you move in.

Just keep in mind, though, that making no down payment means that your home loan will cover the entire value of the property and your monthly payments can be higher than they’d be if you paid a little upfront. You’ll need to work with a financial planner or mortgage lender to make sure that the monthly payments will fit into your budget.

Who will be eligible?

While the goal of the program is to bring Black and Hispanic borrowers closer to homeownership, people of all races can qualify for the Community Affordable Loan Solution.

Eligibility will be based on income and the location of the property. It will also use credit guidelines based on factors such as timely rent, utility bill, phone and auto insurance payments to determine creditworthiness, though, there is no minimum credit score requirement.

If you’re interested in applying for a loan through this program, you must also complete a homebuyer certification course provided by select Bank of America and HUD-approved housing counseling partners before submitting your loan application.

“Our community affordable loan solution will help make the dream of sustained homeownership attainable for more Black and Hispanic families, and it is part of our broader commitment to the communities that we serve,” AJ Barkley, head of neighborhood and community lending at Bank of America, said in a statement.

Other low down payment options to consider

Navy Federal Credit Union offers a VA home loan option that doesn’t require a down payment and is meant for current or retired members of the Armed Forces who have signed up for a Navy Federal Credit Union membership (immediate family members are also eligible).

This lender also has another option called the Military Choice mortgage, which has similar guidelines to the VA loan, such as no PMI and a 0% minimum down payment, but allows sellers to contribute up to 6% of the home’s value toward closing costs.

  • Annual Percentage Rate (APR) Apply online for personalized rates

  • Types of loans Conventional loans, VA loans, Military Choice loans, Homebuyers Choice loans, adjustable-rate mortgage

  • Terms 10 – 30 years

  • Credit needed Not disclosed but lender is flexible

  • Minimum down payment 0%; 5% for conventional loan option


  • 0% downpayment for most loan options

  • flexible repayment terms ranging from 10 years to 30 years

  • Offers refinancing, second-home financing and loans for investment properties

  • No PMI required

  • Fast pre-approval

  • RealtyPlus program allows applicants to receive up to $9,000 cash back


  • Must be a Navy Federal Credit Union member to apply

Chase Bank offers down payment options as low as 3% if you apply for the DreaMaker home loan. The DreaMaker loan is designed especially for those who can only afford to make a small down payment, but it also comes with stricter income requirements. Qualifying borrowers must not have an income that exceeds 80% of the Area Median Income.

  • Annual Percentage Rate (APR) Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included

  • Types of loans Conventional loans, FHA loans, VA loans, DreaMaker℠ loans and Jumbo loans

  • Terms 10 – 30 years

  • Credit needed 620

  • Minimum down payment 3% if moving forward with a DreaMaker℠ loan


  • Chase DreaMaker℠ loan allows for a slightly smaller down payment at 3%

  • Discounts for existing customers

  • Online support available

  • A number of resources available for first-time homebuyers including mortgage calculators, affordability calculator, education courses and Home Advisors


  • Doesn’t offer USDA loans or HELOCs

  • Existing customers discounts apply to those who have large balances in their Chase deposit and investment accounts

PNC Bank also has a few specialized loan options to consider. It offers a special loan option geared toward medical professionals who are looking to buy a primary residence only. With this loan, medical professionals can apply for as much as $1 million and won’t have to pay private mortgage insurance regardless of their down payment amount.

PNC Bank also has a USDA loan option, which traditionally doesn’t require a down payment. Though, homebuyers interested in a USDA loan must use the loan to finance a property that’s located in a qualifying rural area.

  • Annual Percentage Rate (APR) Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included

  • Types of loans Conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, HELOCs, Community Loan and Medical Professional Loan

  • Terms 10 – 30 years

  • Credit needed 620

  • Minimum down payment 0% if moving forward with a USDA loan


  • Offers a wide variety of loans to suit an array of customer needs

  • Available in all 50 states

  • Online and in-person service available

  • Pre-approval in as little as 30 minutes


  • Doesn’t offer home renovation loans


Thuany Lauria International Realtor | South Florida Real Estates Agent
Thuany Lauria Realtor

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