Bank of America First-Time Home Buyer Programs: Eligibility, Down Payment Assistance, and Mortgage Costs
Bank of America first-time home buyer programs include down payment assistance, closing cost help, and low-down-payment mortgages—not one universal benefit. Eligibility depends on the program, your finances, and the property’s location, and mortgage approval remains separate from qualifying for assistance. Start with the bank’s Community Homeownership Commitment.
Reviewed October 26, 2026. Information is educational, not an individualized mortgage or tax recommendation.
Programs and assistance
Bank of America confirmed in May 2026 that its homeownership commitment would continue. Its main options serve different purposes:
| Program | What it provides | Important distinction |
|---|---|---|
| America’s Home Grant | Up to $7,500 toward eligible nonrecurring closing costs or a permanent interest-rate buydown | A lender credit, not down payment money; no repayment required. Program terms |
| Down Payment Grant | The lesser of 3% of the purchase price or $10,000 toward the down payment | No repayment required; first-time buyer, education, income, and location restrictions apply. Program terms |
| Affordable Loan Solution | A mortgage with as little as 3% down | A repayable loan, with mortgage insurance and income and loan limits. Mortgage details |
| HomeOne | A fixed-rate mortgage purchase option with as little as 3% down for eligible first-time buyers | Not a grant; property, education, and other underwriting restrictions apply. Bank product details |
The two assistance programs can provide up to $17,500 combined when both apply to the same eligible purchase. That is a maximum, not a standard award or cash payment to every buyer. The bank describes combining these programs in its home loan product overview.
America’s Home Grant cannot cover your down payment, prepaid items, property taxes, homeowners insurance, or real estate commissions. The Down Payment Grant is restricted to the down payment and may be taxable income; the bank says it will issue Form 1099-MISC, so discuss the implications with a tax adviser. See the grant disclosures.
Who may qualify
For the Down Payment Grant, first-time homebuyer means no homeownership in the past three years. The published America’s Home Grant requirements do not impose that same first-time-buyer condition, so a repeat buyer should not automatically rule it out. Both programs require owner occupancy, eligible geography, qualifying income, and an eligible mortgage funded by Bank of America. Eligibility disclosures.
Both grants also require a minimum combined loan-to-value ratio of 80%. This compares all loans secured by the property with its value. Maximum income and loan amounts apply, and the Down Payment Grant requires homebuyer education. Ask a lending specialist to check your proposed property and financing structure against the current terms.
Do not assume one national income ceiling or credit-score cutoff covers every option. Affordable Loan Solution limits vary by location, and credit and collateral remain subject to approval. Its current page explicitly says mortgage insurance is required—an important correction to older descriptions of the product. Current mortgage requirements.
Other mortgage options
Bank of America also offers FHA and VA loans among its first-time homebuyer mortgage options. FHA down payments can be as low as 3.5%, but upfront and monthly mortgage insurance premiums apply. Eligible VA borrowers may qualify for no down payment and no mortgage insurance, although a VA funding fee may apply unless exempt. Compare eligibility and total costs using the bank’s mortgage product information and government-loan overview.
These are different loan programs, not automatic add-ons to the grants. Ask which assistance programs are compatible with the particular mortgage offered; the bank warns that its grants are not available with every mortgage product. Compatibility restrictions.
Budget beyond the down payment
First-time homebuyer closing costs can include origination charges, appraisal and title services, recording fees, and discount points. Prepaid interest, insurance, and initial escrow deposits can also increase the money needed at settlement. Cash to close is not the same as closing costs: it accounts for the down payment, closing costs, deposits, credits, and transaction adjustments. The CFPB home loan toolkit explains these categories.
For the ongoing budget, include principal, interest, mortgage insurance if applicable, property taxes, homeowners insurance, and HOA dues, plus maintenance. A grant reduces an upfront hurdle; it does not eliminate these ownership expenses. Use the bank’s first-time buyer resources to explore its affordability and closing-cost calculators.
Compare the interest rate and APR, not just the advertised assistance. APR includes interest and certain additional borrowing charges, but should not be your only comparison. Request equivalent loan amounts, terms, and down payments, and compare mortgage insurance, points, credits, cash to close, and rate-lock terms. The CFPB explains APR versus interest rate and requesting comparable Loan Estimates.
How to get started
- Search by location. Use the Down Payment Center and ask a specialist to verify current availability; a search result is not approval.
- Confirm requirements before committing. Ask about eligible properties, income limits, education, grant compatibility, and any borrower contribution. Third-party assistance may require repayment when you sell or refinance; do not assume every program is a nonrepayable grant. Assistance disclosures.
- Prepare for preapproval. The bank lists recent pay stubs, bank statements, W-2s, and tax returns among potential documents. Preapproval involves verification and a credit check but is not a commitment to lend. Prequalification versus preapproval.
- Shop before choosing. Request Loan Estimates from multiple lenders and confirm how assistance appears in your costs. Receiving an estimate does not obligate you to use that lender. CFPB comparison guidance.
Sources and Further Reading
- Bank of America: Community Homeownership Commitment — assistance overview.
- Bank of America: Down Payment Center — detailed grant restrictions and third-party assistance disclosures.
- Bank of America: Affordable Loan Solution — current mortgage requirements.
- Bank of America: Home loan products — HomeOne, FHA, VA, and program footnotes.
- CFPB: Your home loan toolkit — ownership budgets and closing costs.
- CFPB: Request and review multiple Loan Estimates — comparing financing offers.
Last reviewed: October 25, 2026