Bank of America Housing Help Opens Door for Ann Arbor Home Buyers

A Private-Bank Answer to Ann Arbor's Affordability Squeeze

Ann Arbor buyers facing one of Michigan's priciest housing markets have access to a nationwide private-sector assistance program that can meaningfully close the gap between savings and a closing table. Bank of America's Community Homeownership Commitment bundles non-repayable grants, low-down-payment mortgages, and homebuyer education to help modest-income borrowers step into ownership.

On February 3, 2021, Bank of America announced it was tripling the program to $15 billion through 2025, with a goal of helping more than 60,000 individuals and families become homeowners. Michigan is among the states where the bank's grant programs operate, and Ann Arbor buyers can check real-time eligibility through Bank of America's Down Payment Center, which maps the programs to specific addresses and census tracts.

What the Grants Actually Cover

Two stackable grants sit at the heart of the offering. The Down Payment Grant provides up to 3 percent of the home's purchase price, capped at $10,000, applied directly toward the down payment. America's Home Grant offers a separate lender credit of up to $7,500 for non-recurring closing costs such as title insurance and recording fees, or to permanently buy down the interest rate.

Used together, qualified buyers can access as much as $17,500 in assistance that does not need to be repaid, a meaningful cushion against Ann Arbor's above-state-average prices.

Who Qualifies

Eligibility for the Down Payment Grant turns on two main tests. The borrower generally must be a first-time homebuyer, defined as someone who has not owned a primary residence in the past three years. Income limits also apply: for properties outside a low- to moderate-income census tract, the maximum qualifying household income is 80 percent of the FFIEC Area Median Income. For properties inside a low- to moderate-income census tract, the income caps are waived entirely.

That census-tract rule matters in Washtenaw County, where pockets of Ann Arbor, Ypsilanti, and surrounding neighborhoods may qualify as low- to moderate-income tracts even when the broader metro feels expensive. A property-level lookup through the Down Payment Center is the only reliable way to confirm which rules apply.

How It Fits With Michigan's Programs

Bank of America's grants are designed to layer with, not replace, state and local assistance. The Michigan State Housing Development Authority (MSHDA) offers its MI Home Loan with a zero-interest down payment assistance loan of up to $7,500 for first-time buyers who complete approved homebuyer education. Pairing MSHDA assistance with the Bank of America grants, subject to each program's stacking rules, can reduce cash-to-close substantially.

The bank also launched the Community Affordable Loan Solution in August 2022, a zero-down, zero-closing-cost mortgage in designated neighborhoods within Charlotte, Dallas, Detroit, Los Angeles, and Miami. Ann Arbor is not on that initial list, but Detroit's inclusion signals Michigan is a priority market for the bank's broader affordable-lending strategy.

How Ann Arbor Buyers Can Start

Prospective buyers should take three steps. First, visit Bank of America's Down Payment Center and enter the target property address to confirm grant availability. Second, complete a HUD-approved homebuyer education course, which is required for both the bank's grants and MSHDA assistance. Third, work with a Bank of America mortgage loan officer to confirm which loan product best matches the buyer's income, credit profile, and target price range, such as the Affordable Loan Solution mortgage with a 3 percent down requirement and no mortgage insurance.

Grants are awarded market by market and can change, so buyers close to ready should confirm terms in writing before signing a purchase agreement. For Ann Arbor residents priced out by rising values but otherwise mortgage-ready, the Community Homeownership Commitment is one of the few private-sector programs that combines meaningful grant dollars with flexible, census-tract-based eligibility rules.