BofA Offers New Affordable Home Loans

Bank of America announced a new program to offer affordable home loans that it said would reduce the out-of-pocket expenses and income necessary for low- and moderate-income households to qualify for a loan. Under the new program, San Francisco-based Bank of America will permit borrowers to buy a home with a down payment of only 3%, with 1% allowed in a gift or grant. The bank anticipates making $400 million worth of loans in coming months to an estimated 6,000 families. The loans are available in California and 21 other states.