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Coming up with the money for a down payment is one of the steps in buying a home. Bank of America offers help through its Down Payment Grant program, aimed at buyers who meet the stated requirements.
According to the bank’s official information, the grant can cover up to 3% of the purchase price, with a maximum of $10,000. The money does not have to be repaid, but it is available only in certain markets and for certain mortgage products.
How much the program offers for the down payment
The aid can cover up to 3% of the home’s purchase price, without exceeding $10,000. The amount awarded will be subject to the program’s requirements.
The funds must be used exclusively for the home down payment.
Who can qualify for the aid
Bank of America requires buyers to be first-time homebuyers under the program’s definition, which includes people who have not owned a home in the past three years.
In addition, the rules require that the buyer occupy the property, that it be in an eligible area and that income and loan amount limits be met.
The mortgage financing must be arranged through Bank of America, and homebuyer education is required. The aid can be applied only once to an eligible mortgage or property, regardless of how many people are listed as applicants.
What it means that the grant does not have to be repaid
Funds received through Down Payment Grant do not have to be repaid. This applies to the grant. The mortgage loan must be repaid under the terms agreed with the bank.
The program’s terms also warn that the aid may be considered taxable income and that a 1099-MISC form will be issued. For that reason, the bank recommends checking its tax treatment with a tax adviser.
How to check the program’s availability and requirements
Bank of America recommends contacting a loan specialist to confirm whether the buyer, the home and the financing meet the requirements.
The official page also provides access to the Down Payment Center, a tool to search for homebuying assistance options.
The inquiry should take into account the property’s location and the loan selected, because Down Payment Grant is available in certain markets and cannot be used with all mortgage products.