Bank of America, in conjunction with Freddie Mac and Self-Help Ventures Fund, began offering mortgages that only required consumers to put down 3% and didn’t require them to obtain mortgage insurance either.
Now, it seems the program, “Affordable Loan Solutions,” is so successful that Bank of America says it’s doubling its annual commitment to the program – from $500 million to $1 billion, reports HousingWire staffer Ben Lane.
Bank of America said that more than 90% of the program’s participants are first-time buyers, receiving home-ownership financing for the first time.
“Since our introduction in February, the Affordable Loan Solution program has been meeting the needs of LMI borrowers who desire a responsible mortgage product at an affordable entry point,” said D. Steve Boland, consumer lending executive at Bank of America. “We’re especially proud of how the Affordable Loan Solution program has become a popular choice for creditworthy first-time home buyers, many of whom live in under-served communities.”