Dallas, along with four other cities, has been chosen by Bank of America for the launch of its Community Affordable Loan Solution.
The program’s credit guidelines are based on factors such as timely payment of rent, utility, phone and auto insurance bills, and it does not require mortgage insurance or a minimum credit score, according to the Dallas Morning News.
The nationwide program will offer home loans with no down payment or closing cost for first-time homebuyers in Black and Hispanic communities — as defined by the census — in Dallas, Charlotte, Detroit, Los Angeles and Miami.
Eligibility isn’t just based on income or home location, however. Before applying, prospective buyers are required to complete a homebuyer certification course provided by Bank of America and HUD-approved housing counseling partners.
“Homeownership strengthens our communities and can help individuals and families to build wealth over time,” AJ Barkley, head of neighborhood and community lending for Bank of America, said in a statement touting the initiative. “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.”
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The program is in addition to the bank’s existing $15 billion commitment to help 60,000 individuals and families buy homes by 2025 through affordable mortgages, grants and educational opportunities. The bank says it has already helped more than 36,000 homebuyers, providing $9.5 billion in low-down-payment loans and more than $350 million in down payment and closing cost grants.
Earlier this year, the National Association of Realtors reported that the homeownership rate for white Americans has held consistently around 70 percent since 2017, while during the same period, only 41 percent of Blacks and 47 percent of Hispanics owned homes.
In Dallas, only 28.5 percent of Black residents are homeowners compared to 53.2 percent of White residents.
Black and Hispanic families have long been at a disadvantage in the housing market, from historical redlining preventing them from buying homes in certain neighborhoods, to the more recent phenomena of racial bias in appraisals devaluing homes owned by people of color, and the “digital redlining” that can then result.
— Maddy Sperling