The last time banks tried this; it darn near destroyed the world economy. So what the heck, why not do it again, right Bank of America? 

They are rolling out a new lending program that, on paper, does not seem to make much sense, but they are motivated to prove that they don’t favor white borrowers, so here’s what they have come up with.

No down payment. No closing costs. And what the heck, let’s throw in no minimum credit score either. With mortgage rates rising through the roof, this sounds too good to be true, but it is not. 

The underwriters are looking for a history of on-time rent payments and monthly bills. 

For those applying, they are required to take a homebuyer certification course where they learn about home ownership responsibilities. 

 The program is available in Dallas, Detroit, Charlotte, and Los Angeles. 

Not everybody thinks this is an excellent idea for BofA, for many reasons, including the fact that they did the same thing 16 years ago, and the economy nearly imploded. 

Here’s a quote from AJ Barkley, who runs Bank of America’s neighborhood community and lending department. 

“Homeownership strengthens our communities and can help individuals and families to build wealth over time.”

The bank is well aware that there will be a percentage of borrowers who get loans in this program that would be considered “subprime” under normal circumstances. According to Experian, they call borrowers’ credit scores between 580 and 669 as being subprime. 

File this one under the headline“let’s see how this works out.”

Add comment