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Bank Of America: Zero Down Payment Loans For First-Time Homebuyers In Black, Hispanic Communities

Bank of America introduced a zero down payment, zero closing cost mortgage for black and Hispanic communities in select cities across the United States. An immediate observation would be that this plan is discriminatory. BOA may be able to skirt around allegations of discrimination due to the specific wording found within the press release. This new mortgage, called the “Community Affordable Loan Solution”, will be available to people from select neighborhoods with high black and Hispanic populations… but not specifically to black and Hispanic people.

This program seeks to close the “mortgage gap” between whites, blacks, and Hispanics. For white households, the homeownership rate was 72.1%. That compares with 51.1% for Hispanic households and 43.4% for black households. The black homeownership rate actually decreased in 2020 from what it was back in 2010. The new mortgage is also a way for BOA to shore up any public relations pitfalls due to their own errors in the past as it relates to race and lending.

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Critics of the new mortgage from Bank of America obviously have an issue with the racial component. Even if the objective is good, some say that the ends do not justify the means. Then there is the practicality of the loan. If a person cannot afford to put any money down, or closing costs, or the mortgage insurance that typically comes when a person places less than 20% down on a home, then how can they afford the house over a period of time?

Mortgage is just one piece of the homeownership pie. Regular maintenance must also be accounted for. Major repairs like roofing and HVAC require thousands, if not TENS of thousands of dollars in cash at once. Some see this as yet another 2008 mortgage crisis when people were saddled with debt that the banks knew they would not be able to pay back.


Bank of America: Zero-down-payment mortgage for first-time buyers

Bank of America Introduces Community Affordable Loan Solution™ to Expand Homeownership Opportunities in Black/African American and Hispanic-Latino Communities

Bank of America draws mixed reviews for zero-down payment mortgages aimed at boosting Black and Hispanic home ownership – MarketWatch

Bank of America piloting no-money-down mortgages in 5 cities to help Black, Latino buyers

Bank of America Tests No-Down-Payment Mortgages in Black and Hispanic Neighborhoods – The New York Times

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  1. Your last sentence nailed it. The bank is making a classic cash grab and using race to disguise the real scheme behind it. No different than buying a car from a used car lot. Or using check cashing pawn shops. The list of these types of scams goes on and on.

    When you buy a house through a bank with a mortgage you don’t actually own it. And even if you pay all cash in full, you still owe the government taxes and various other location dependent fees associated with home/property ownership. You will continue to pay for as long as you live and “own” it. If you fail to pay, you lose the right to occupy that home and property and it will be resold without your consent.

    But sure, if you have a job and have earned a steady above poverty level income paycheck for a solid ten years or so, you might be able to make this work to your benefit. But I doubt it. The additional fees and interest are gonna hit hard down the road. If you should ever want to sell, good luck with any equity coming your way. None of that really matters though because they had to go and make it about anti-white racism.

    This is the type of stuff they should be teaching in our schools rather than the anti-white racist/black emboldening CRT, gender identity sex changes and political whatnot. Basic life skills? Even just basic thinking and decision making skills? Hows about simple “this good, that bad”?

    And I think your % outline of racial homeownership directly reflects the education and job market. Some people choose not to study in school, but rather drop out. Not to go for higher education or even learning a simple trade. Many of these people choose crime and the streets instead. Many of the same people bitching about unfair mortgage practices are the ones living on the tax payers dime through government assistance programs cover literally every facet of life (housing, food, transportation, medical etc.,).. and they wonder why life is so good for others and so unfair to them.


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