Bank of America offers credits, fee waivers to expand mortgages to more borrowers

 Bank of America has made several recent moves to reduce borrowing costs for would-be homebuyers who face affordability constraints. The bank's latest offer: mortgages with no origination fees for buyers with little savings for a downpayment.

The promotion is available through Oct. 31, 2019. It applies only to loans backed by the Federal Housing Administration (FHA), Department of Veteran Affairs (VA), Freddie Mac's Home Possible program and Bank of America's own Affordable Loan Solution program.

"When you're a borrower, it's much easier to compare loan offers when lenders don't charge fees because it's a true apples-to-apples comparison," Holden Lewis, a housing expert at personal finance website NerdWallet, told MarketWatch. "Lots of eyes are on the few lenders who don't charge origination fees, and if they thrive by doing so, you'll see more lenders follow their lead. A shift towards zero origination fee loans would be great for consumers because it would be easier for both homebuyers and refinancers to comparison-shop and avoid unnecessary confusion."

Bank of America isn't the only one waiving origination fees. Nearly one in 10 borrowers say they weren't charged fees, according to a study from LendingTree.

That said, 60% of borrowers paid between $1,000 to $5,000 in origination fees. Origination fees are usually charged as a percentage of the home's price. As such, in high-priced housing markets, homebuyers may face steeper costs.

Bank of America building

Bank of America is upping the ante on its efforts to extend mortgages to more cash-strapped homebuyers and that includes $0 lender origination fees and credits that don’t have to be repaid to borrowers with certain no- or low-down payment mortgages.

The goal is to help homebuyers who may not have a lot of up-front cash to pay the initial homebuying costs get into a mortgage they’re perfectly capable of repaying.

The new $0 lender origination fee program is available to borrowers who apply for a mortgage through Bank of America by Oct. 31, 2019. The offer applies to four loan programs: government-insured VA and FHA loans, Bank of America’s Affordable Loan Solution mortgage and the Freddie Mac HomePossible mortgage.

Borrowers can combine the limited-time offer (or use it individually) with one of the following loan programs:

  • America’s Home Grant program — Newly expanded, this Bank of America program now offers a lender credit of up to $7,500 that doesn’t have to be repaid. The credit can be used to permanently buy down the interest rate or towards non-recurring closing costs, such as title insurance and recording fees, or to permanently buy down the interest rate. The grants are available in 39 markets and will be expanded nationwide.
  • Affordable Loan Solution mortgage — This fixed-rate mortgage is Bank of America’s own 3 percent down payment mortgage for low- and moderate-income borrowers. It offers a competitive rate and doesn’t require mortgage insurance.
  • Freddie Mac HomePossible mortgage — Backed by one of the nation’s two mortgage powerhouses, this fixed-rate loan features a down payment as low as 3 percent and lower-cost mortgage insurance.
  • Down payment and closing cost assistance programs offered by state and local agencies, nonprofits and employers.

Call me today, (909) 435-7588, and you will be directed to speak with one of my lenders. Interest rates are low, so this is a perfect time to buy. Don't Wait! Call and Own Now!

First Time Buyer Information

First Time Buyer



Pre- Qualification: Meet with a mortgage broker and find out how much you can afford to invest for your new home.

Pre- Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You also will avoid being disappointed when going after the homes you are interested in that may be out of your price range. With Pre- Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you're interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for their home. Costs for pre-approvals are generally nominal and lenders will usually permit you to pay them when you close your loan.

List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the desired bedrooms, bathrooms, square footage,etc.). The second list is your wishes, things you would like to have (Backyard, Pool, additional upgrades,etc.) but that aren't absolutely necessary. Realistically for first-time buyers, you probably won't get everything on your wish list, but it will keep you on track for what you're looking for.

Representation by a Professional: Consider hiring your own real estate agent, one who is working for you and specializes in your needs.

Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:

One or more detailed maps with your areas of interests highlighted.
A file of the homes that your agent has shown to you, along with setup sheets and photos.
Paper and pen, for taking notes as you search.
Take pictures to help refresh your memory on individual homes.
Location: Look at potential homes as if you are the seller. Would a prospective buyer find it attractive based on curb appeal, school districts, crime rate, proximity to positives (shopping, parks, freeway access) and negatives (abandoned properties, garbage dump, source of noise) features of the area.

Be Objective: When searching for your new home ask yourself the following questions. Does this home really meet your needs? Does it financially make sense? Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don't forget such essentials as:

- Include inspection & mortgage contingencies in your written offer.
- Have the property inspected by a professional inspector.
- Check to see that no changes have been made that weren't agreed on (i.e., closing cost, repairs, etc.). All the above may seem rather overwhelming. That's why having a professional represent you and keep track of all the details for you is highly recommended. Please email us or call us directly to discuss any of these matters in further detail.


Enclosed information is deemed reliable but is not guaranteed.