The Community Affordable Loan Solution is a mortgage program offered by Bank of America that requires just 3% down and is designed to expand homeownership in predominantly Black/African American and Hispanic-Latino communities. To apply, you work directly with a Bank of America lending specialist, either online, by phone, or at a local financial center. Here’s what you need to know about the program’s features, who qualifies, and how to start the process.
What the Program Offers
The Community Affordable Loan Solution is a fixed-rate conventional mortgage with a 3% down payment. The maximum loan-to-value ratio is 97%, meaning the loan can cover up to 97% of the home’s purchase price. If you combine the mortgage with a secondary financing program, the combined loan-to-value can reach 105%, though any secondary financing on loans above 95% LTV must come from an approved Community Second Program.
Mortgage insurance is required on these loans, which is standard for conventional mortgages with less than 20% down. The monthly cost of mortgage insurance varies based on your loan amount, credit profile, and down payment size, but it can typically be removed once you reach 20% equity in the home.
Bank of America also offers separate grant programs that can help with your down payment or closing costs. The America’s Home Grant and Down Payment Grant programs are available in select markets and can be layered on top of the Community Affordable Loan Solution. State and local agencies, nonprofits, and employers may offer additional assistance in your area. Keep in mind that some assistance programs require repayment if you sell, refinance, or transfer the home.
Who Can Qualify
This program is available for properties located in designated census tracts with majority Black/African American or Hispanic-Latino populations. Bank of America initially launched the program in Charlotte, Dallas, Detroit, Los Angeles, and Miami, though availability may have expanded since then. The property you’re purchasing, not where you currently live, determines eligibility.
Bank of America does not publicly list a specific minimum credit score or income cap for this program on its website. Eligibility is based on a combination of factors including the property location, your income, your credit history, and standard mortgage qualification criteria. The best way to find out if you qualify is to speak with a Bank of America lending specialist who can review your specific situation and confirm whether the property you’re interested in falls within an eligible area.
Documents You’ll Need
Like any mortgage application, you should expect to provide documentation that verifies your identity, income, employment, and financial standing. Gather these before you start:
- Proof of income: Recent pay stubs (typically covering 30 days), W-2 forms from the past two years, and federal tax returns. If you’re self-employed, you’ll likely need two years of tax returns along with profit-and-loss statements.
- Employment verification: Your lender will confirm your current employment directly with your employer.
- Bank and asset statements: Two to three months of statements for checking, savings, and investment accounts showing you have funds for the down payment and closing costs.
- Identification: A government-issued photo ID and your Social Security number.
- Debt information: Details on any existing loans, credit cards, or other monthly obligations. Your lender will also pull your credit report.
How to Start the Application
You apply for the Community Affordable Loan Solution directly through Bank of America. There are three ways to begin. You can start an application online through Bank of America’s mortgage website, call their mortgage team by phone, or visit a local Bank of America financial center in person. If you’re buying in one of the eligible areas, a lending specialist can confirm the property qualifies and walk you through pricing.
Before applying, it helps to get prequalified. Prequalification gives you a preliminary estimate of how much you can borrow based on your income and debts, without a hard credit pull. Once you’re ready to move forward with a specific property, you’ll submit a full application, which triggers a hard credit inquiry and kicks off the underwriting process. From application to closing, a typical mortgage takes 30 to 45 days, though timelines vary based on how quickly documents are submitted and whether any issues come up during underwriting.
Check Bank of America’s Down Payment Center before you apply. It searches for grant programs and assistance you may be eligible for based on your location and income, which could reduce or eliminate your out-of-pocket costs beyond the 3% minimum down payment.
Other Low Down Payment Options
If you don’t qualify for the Community Affordable Loan Solution or the property you want isn’t in an eligible area, several other programs offer similarly low barriers to entry.
Rocket Mortgage offers a ONE+ loan where you put down 1% and the lender adds another 2% as a non-repayable grant, effectively giving you a 3% down payment without paying all of it yourself. Guild Mortgage has a Zero Down product that pairs a 3.5% FHA loan with a forgivable second mortgage, bringing your upfront cost to nothing. Guild also offers an Arrive Home loan for borrowers earning up to 160% of the area median income. Flagstar Bank’s Destination Home Mortgage allows 0% down for qualified buyers, and its Power Up program provides up to $8,000 in grant funds for first-time buyers in designated census tracts.
FHA loans remain widely available from most lenders with down payments as low as 3.5% and credit score requirements starting around 580. VA loans require no down payment at all for eligible veterans and active-duty service members. USDA loans also offer 0% down for homes in eligible rural areas. Each of these programs has its own trade-offs in terms of mortgage insurance costs, property restrictions, and income limits, so comparing across programs is worth the effort before you commit.