Bank of America has unveiled a $5 billion affordable homeownership program for low- to moderate-income and multicultural homebuyers and communities across the country.

The Bank of America Neighborhood Solutions program will help more than 20,000 borrowers and is planned for five years.

It encompasses a new down payment and closing-cost assistance option, innovative low- down-payment mortgages, grants that can be applied to non-recurring closing costs, and a national network of dedicated lending professionals. In addition, it features easy-to-understand financial education tools, strategic partnerships with real-estate professionals. Last, a national network of affordable housing nonprofit partners who provide in-depth homebuyer education and counseling.

“Today, our commitment to affordable and responsible homeownership is greater than ever, with half of our loans going to low- to moderate-income or multicultural families and communities,” said Steve Boland, head of consumer lending at Bank of America. “We know many of our clients want the power to own their first home, which can sometimes be challenging. One of the ways we’re helping is through our suite of affordable homeownership solutions and professional resources, which aid them in overcoming barriers and put sustainable homeownership within reach.”

Bank of America offers several solutions that are designed to bring this initiative to fruition:

• A new down payment and closing-cost program, launching in the second quarter of 2019, which will help customers overcome the biggest barriers to homeownership. Eligible borrowers will receive up to $10,000 to be used toward their down payment or closing costs when they get a Home Possible mortgage.
• America’s Home Grant program was expanded and now offers a lender credit of up to $7,500 that can be used toward non-recurring closing costs, like title insurance and recording fees, or to permanently buy down the interest rate. The funds, which do not require repayment, are available in 39 markets today and will soon be nationwide.
• Affordable Loan Solution mortgage is a fixed-rate loan for low- and moderate-income borrowers that offers a competitive rate with a down payment as low as 3 percent and no mortgage insurance. Today, 90 percent of these loans are made to first-time homebuyers.
• Freddie Mac Home Possible mortgage—this is a fixed-rate loan with a down payment as low as 3 percent and lower-cost mortgage insurance.