Bank of America Now Offers 3% Down Mortgages Without Mortgage Insurance

Partners with Freddie Mac, Self-Help Ventures Fund

Housing Wire |  February 22, 2016    Bank of America unveiled a new affordable mortgage program that offers consumers the option of putting as little as 3% down and requires no mortgage insurance. The program does not involve the Federal Housing Administration, whose program has recently undergone a lot of scrutiny from big banks. 

Bank of America announced a partnership on Monday with Self-Help Ventures Fund and Freddie Mac for its new "Affordable Loan Solution" mortgage, a conforming loan that provides low- and moderate-income homebuyers access to a responsible lending product with counseling at affordable entry prices.

To make the program function, the three companies will work together to help ensure the loan is properly originated and backed in case the loan goes delinquent, the companies said Monday.

For starters, Bank of America said the mortgage will be available through all of its mortgage sales channels. Read more here.