Though Tucson’s residential real estate market is faring better than many expected at the onset of the pandemic, the majority of prospective homeowners say they need assistance with the down payment on their home. In response, Bank of America is expanding their Community Homeownership Commitment, which is a loan and grant program that helps individuals and families purchase a home. The Commitment was first introduced in 2019, but Bank of America recently announced they are tripling the initiative’s funding from $5 billion to $15 billion to help 60,000 people buy homes through 2025. So far, the initiative has helped more than 21,000 individuals and families, and provided $180 million in grants for down payments and closing costs.
The program also includes two grant programs to help prospective buyers with the upfront costs of homeownership: The Down Payment Grant program allows prospective homebuyers in more than 260 cities and counties across the country to receive 3% of their home’s purchase price up to $10,000 to be used toward their down payment. No repayment is required.
The America’s Home Grant program offers a lender credit of up to $7,500 that can be used towards non-recurring closing costs, like title insurance and recording fees, or to permanently buy down the interest rate. The funds do not require repayment and can be combined with Down Payment Grant funds to lower the cost of homeownership.
According to Bank of America, homebuyers receive on average about $14,000 to help with their home purchases when the grant programs are used together.
“It can be challenging to save enough to buy a home, so it’s no surprise that we’ve seen an overwhelmingly positive response to our programs,” said president of retail at Bank of America D. Steve Boland in a press release. “We are excited about our goal of helping an even greater number of homebuyers to prepare for homeownership now and in the future.”
For more information, visit promotions.bankofamerica.com/homeloans/homeowner