Real Estate Report:
Homebuyers may be eligible to receive up to $5000.00 in closing cost assistance through Bank of America’s Home Grant program. These funds can be used to help with nonrecurring closing costs such as
title insurance and recording fees. Qualifications to receive this grant funding depend on income and the location of the home. This program is offered by Bank of America to help make home buying more affordable for modest-income buyers.
Qualified borrowers must meet eligibility requirements including, but not limited to, being owner-occupants, meeting certain qualifying income limitations and purchasing a home within a certain
geographical area. The America’s Home Grant Program is a lender credit and not eligible to be used for down payment, escrowed taxes or homeowner’s insurance. Other details on this grant program include: the home loan must fund with Bank of America; borrowers may not receive cash back; grant is only available with conventional, FHA and VA first mortgage loan products.
Bank of America’s Home Grant Program is available for properties in most Maryland counties. The maximum borrower/co-borrower annual qualifying income limit is $72,880 for properties that are not located in a low-to-moderate income census tract (LMICT). (Qualifying income of $72,880 is 80% of Federal Financial Institutions Examination Council (FFIEC) Area Median Income and is subject to change). For properties located in eligible counties and located within a LMICT, the maximum borrower/co-borrower annual qualifying income limit is much higher at $200,000.
Only fixed-rate purchase loans with terms of 25 or 30 years apply and the grant is only available on primary residence purchases only. Certain property types are ineligible and the borrower(s) must not have an individual or joint ownership interest in any other residential property at time of closing. Maximum purchase loan-to-value is 97% and maximum combined purchase loan-to-value is 103%.
A few other grant program details include:
- Homebuyer education may also be required.
- Restrictions apply regarding co-borrowers.
- Maximum income and loan amount limits apply.
- Minimum credit scores may apply.
- Sales price restrictions and income requirements may apply. Homebuyer education may be required.
- Owner-occupied properties only.
Lauren Bunting is a licensed Associate Broker with Bunting Realty, Inc. in Berlin, MD.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
