Neighborhood Champions Mortgage Program Makes Home Ownership Reachable For Community's Heroes
July 13, 2004 - Schoolteachers, police officers, fire fighters and medical workers - typically among the least likely to qualify for and own a home in the communities they serve and protect every day - now can find the dream of home ownership within reach using a special mortgage program introduced by Bank of America.
The Neighborhood Champions program is designed to provide flexible mortgage financing for full-time educators or employees at the primary, secondary or college/university education levels; part-time teachers; full-time sworn members or employees of a police or other law enforcement department or related profession; full-time firefighters of employees of a fire department or related profession; and full-time medical professionals including, but not limited to nurses, nursing assistants, medical technicians or employees of a hospital, nursing facility or doctor's office employees. Available nationally, Neighborhood Champions features greater flexibility with credit scores and credit histories, no income restrictions and requires little to no down payment.
"We want to make sure the professionals who make the neighborhood a better place can live there, too," said Kevin Shannon, Bank of America Consumer Real Estate president. "Teachers, police officers, fire fighters and medical workers often do not have the income or assets to meet the requirements of most traditional loans. Making it easier for them to own a home of their own is an investment in our communities."
On average, people in these occupations working in central cities have less than a one-in-three chance of finding a home they can afford, and just a three-in-ten chance in the surrounding suburbs, according to a June 2003 study, "Homeownership for Heroes," conducted by the National Association of Home Builders for the Homeownership Alliance. Further, the median incomes earned by these occupations - including elementary school teachers, police officers and licensed practical nurses -- is below the minimum needed to qualify for the median price home in the United States, $156,000, according to a recent study by the National Housing Conference (NHC).
Neighborhood Champions is made up of three specialized mortgage programs: Police and Firefighter Flex*, Medical Worker Flex* and Teacher Flex*, which has been enhanced since Bank of America first launched that product in May of 2000. "Even prior to these program enhancements, we are proud that nearly 12,000 teachers have purchased homes using our Teacher programs to date," said Shannon. "Extending the benefits of our Neighborhood Champions products to Americans in these other essential occupations will contribute to their quality of life, start them down a path of building wealth and enable our communities to attract and retain the best and brightest to these professions."
Both 30-year fixed-rate mortgage loans and 7/1 adjustable rate mortgages are available through the Neighborhood Champions program, and are available for both purchase and refinance transactions. Little or no down payment is required. Borrowers may need as little as the lesser of 1 percent of the purchase price or $500 from their own funds for a one-unit, or 3 percent for a two-unit from the borrower's funds. Remaining closing costs and/or down payment may come from a gift, grant or other flexible source.
The Neighborhood Champions program has no income restrictions, allows undocumented income to be considered and features flexible credit guidelines. Borrowers without an established credit history may need only a favorable 12-month payment history that includes rent and at least three other monthly bills.
In addition to the Neighborhood Champions mortgage product features, Bank of America offers teachers, police officers, firefighters and medical workers a free home buying estimate to determine how much home they can afford. Other free and discounted banking services are available to those who secure their mortgage through Bank of America. Teachers, police officers, firefighters and medical workers can receive guidance about the process of financing a home, learn more about this exclusive program or apply for Neighborhood Champions mortgage financing by contacting a Bank of America mortgage specialist at 1-800-900-9000.