Top perks
Low down payment offerings
Bank of America Mortgage offers multiple loan options for borrowers with qualifying incomes who are low on cash, including:
- The Affordable Loan Solution® program requires a 3% down payment on loans of up to $766,550. In certain high-cost markets, loan amounts of up to $1,149,825 are available with a 5% down payment. This loan requires mortgage insurance and cash reserves.
- The Freddie Mac Home Possible® mortgage has the same low down payment requirement. However, this mortgage program requires mortgage insurance and more cash reserves.
- Qualified applicants can choose a VA loan (a loan guaranteed by the Department of Veterans Affairs). VA loans have no minimum down payment requirement.
- FHA loans have more flexible requirements than some other mortgage programs. The down payment requirement is 3.5%. Mortgage insurance is required.
The first loan type has income limits and other conditions. There is no income limitation on VA loans, but other eligibility requirements apply. Anyone can apply for an FHA loan, but it's usually more appropriate for borrowers who don't qualify for a conventional loan (for example, because they plan to make a down payment of less than 5%).
Digital mortgage application
Many buyers want to handle financial matters from the comfort of home. Bank of America Mortgage delivers with a fully online application process.
With the Bank of America Home Loan Navigator® (part of its online banking mobile app), you can:
- Prequalify
- Apply
- Electronically sign documents
- Track your loan
- Refinance your existing mortgage
There is a home search feature within the app as well.
High industry rankings
Bank of America Mortgage ranks consistently high on independent review sites:
- A- rating with the Better Business Bureau
- 4.82 out of 5 stars on Zillow
Customer discounts
Some Bank of America customers qualify for a discount on the mortgage origination fee. To be eligible, you must sign up for the Preferred Rewards program. This program requires a three-month combined average daily balance of $20,000 or more in qualifying Bank of America banking accounts and/or Merrill investment accounts. The Preferred Rewards program is free to join, and the origination fee discounts are as follows:
- $200 discount for Gold tier members (combined balance of at least $20,000)
- $400 discount for Platinum tier members (combined balance of at least $50,000)
- $600 discount for Platinum Honors tier members (combined balance of at least $100,000)
Preferred Rewards members can also get a mortgage interest rate discount of up to 0.750% on a home equity line of credit (HELOC).
Cash grants
Bank of America Mortgage offers closing credits up to $7,500 and down payment grants of up to $10,000 to qualified applicants. The programs can be combined for a total possible benefit of $17,500, and this money does not have to be repaid. Eligibility requirements include income caps, geographical restrictions, occupancy restrictions (primary residence only), and loan limits.
The Bank of America Down Payment Center is a comprehensive online resource. It helps borrowers identify other down payment and closing cost assistance programs that may be specific to the borrower's county or city. Bank of America Mortgage places no restriction on the combination of assistance programs it allows. It's worth noting that most home buyer assistance programs are either for first-time home buyers, low- to moderate-income borrowers, or borrowers in designated areas. Many require home buyer education.
Affordable HELOC
Borrowers considering a cash-out refinance loan can also consider the Bank of America Mortgage home equity line of credit. This loan product comes with no application fee, no closing costs, no annual fee, and no fee to access cash. Bank of America makes HELOCs even more affordable with interest rate discounts. Those are available to customers who set up automatic payments and customers who make an initial withdrawal of at least $10,000. There is also no fee to convert a variable-rate HELOC to a fixed-rate loan.
Doctor loans
A doctor loan, or physician loan program, is for doctors, dentists, and other qualified medical professionals who have a high income but insufficient cash available to make a 20% down payment. Qualified borrowers can get a mortgage for up to $850,000 with a 3% down payment, up to $1 million with a 5% down payment, up to $1.5 million with 10% down, and up to $2 million with 15% down. Medical residents and fellows with an employment contract can get a mortgage 90 days before they start their new job.
Transparency
Bank of America publishes its mortgage rates on its website. That's convenient for borrowers who are doing initial research online.