Bank of America Mortgage 2021 Review

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Top perks

Low down payment offerings

Bank of America Mortgage offers multiple loan options for borrowers with qualifying incomes who are low on cash.

  • The Affordable Loan Solution® program requires a 3% down payment on loans of up to $548,250, and there is no mortgage insurance requirement.
  • 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, or a loan guaranteed by the Department of Veterans Affairs. VA loans have no minimum down payment requirement.

The first two loan types require a 5% down payment on loans of $548,250 to $822,375 in high-cost areas. For both programs, income limits and other conditions apply.

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.

Accepts non-traditional credit data

To help more borrowers qualify, Bank of America Mortgage considers alternative credit data. That can mean rent, utility, cell phone payments, or even your checking account history. (Whether to share such alternative credit data is up to you.)

High industry rankings

Bank of America Mortgage consistently ranks highly in independent studies:

  • Second in customer satisfaction in the J.D. Power 2020 U.S. Primary Mortgage Origination Satisfaction Study℠
  • Top 8 in customer satisfaction in the J.D. Power 2020 U.S. Primary Mortgage Servicer Satisfaction Study℠
  • A+ rating with the Better Business Bureau
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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 0.375% 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. 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 will allow. It’s worth noting that many home buyer assistance programs are for first-time home buyers only, and require home buyer education.

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Affordable HELOC

Borrowers considering a cash-out refinance loan can 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.

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