Bank of America Launches New Support Measures for Homebuyers Amid Ann Arbor’s Skyrocketing Housing Market
As the housing market in Ann Arbor, Michigan escalates, leaving many potential homeowners unable to afford the climbing prices, a beacon of hope is emerging. Bank of America has recently announced its new initiative aiming to provide assistance to moderate-income homebuyers, creating a more accessible path towards homeownership.
Expanding its down-payment aid program to encompass Washtenaw County, Bank of America now provides an opportunity for eligible homebuyers to receive as much as $17,500 in assistance. This sum is intended to ease the financial burden of down payments and closing costs and does not require repayment, as confirmed by Paul Keifer, the bank’s neighborhood lending performance manager.
The down-payment grant program was first launched in 2019 and has already made homeownership possible for tens of thousands of people across various markets. Washtenaw County is the latest addition to the areas serviced by the program. This expansion was driven by the recognition of the increasing housing market prices in the county, which saw a 4% increase over the past year, and the need to prevent low-to-moderate income families from being shut out of the housing market due to area inventory.
The grant program applies to buyers with annual household incomes of up to $94,240, which amounts to 80% of the median income for a family of four in Washtenaw County. The income cap increases to 150% of the area median income, or $176,700, for properties located in low- or moderate-income census tracts.
The grants offered can cover up to $10,000 or 3% of a home’s purchase price for down payments and up to $7,500 in other costs for closing. However, if the closing costs do not reach the maximum grant amount, the remaining funds can be used to lower the interest rate. These grants are typically combined with 30-year, fixed-rate mortgages without deed restrictions.
In addition, the bank also offers an affordable loan solution, which is a 3% down mortgage. This arrangement often enables buyers to cover their entire down payment with the grant and most, if not all, of their closing costs with America’s Home Grant, thereby turning the dream of homeownership into reality.
Bank of America initially focused the program rollout on areas of utmost need, testing its effectiveness and value to clients before expanding. Positive feedback from the areas where the program was first implemented encouraged the bank to seek other communities that could benefit from the program, leading them to Ann Arbor and Washtenaw County.
Ann Arbor’s unique housing market, where over half of all home sales are cash-only transactions, indicates a high level of investor activity. The bank’s down-payment aid program aims to provide a competitive advantage to prospective homeowners, particularly those in the middle-income bracket who may not qualify for traditional affordable housing programs yet struggle to afford market-rate homes.
The program’s goal is to promote community stability by enabling integral members, such as teachers and healthcare workers, to achieve homeownership, which is often seen as a major driver of generational wealth.
Those interested in learning more about the grant program or discussing their personal circumstances are encouraged to contact Bank of America’s lending professionals or visit the bank’s website. While homeownership may not be the best path for everyone, Bank of America is committed to providing guidance to those considering this important step. Click here to read more.