Bank of America generally requires a minimum credit score of 620 to qualify for a conventional mortgage. This lender offers a mortgage option with a low down payment of 3%, but down payment amounts will vary depending on the loan type.
MoneyGeek’s Take
Bank of America Mortgage Review
Updated: November 6, 2024
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At a Glance: Bank of America Mortgages
- Bank of America
- Conventional: 3% minimum VA: None FHA:0-10% depending on credit score Jumbo: 20% Doctors: as low as 5% Minimum Down Payment
- Conventional, FHA, VA, USDA Guaranteed, Jumbo, Doctor LoansLoan Products Offered
- Operates in all 50 StatesStates of Operation
- Yes Online Application
Founded in 1904, the Bank of America offers a range of financial services, including checking and savings accounts, mortgages, cash and wealth management, insurance and more. The finance company has an A+ rating from the Better Business Bureau. It operates in 50 states and is headquartered in Charlotte, North Carolina.
Pros
- Offers assistance programs for down payments and closing costs
- Online application is available
- Rate locking with the Digital Mortgage Experience®
- Offers loan refinancing option
- Origination fee discount for Preferred Rewards members
Cons
- Down payment required except for VA loans
- Mortgage insurance required
- No renovation mortgage loans
- No mortgage loans for condominiums or apartments
- Customers have complained about poor customer service
Founded in 1904, the Bank of America offers a range of financial services, including checking and savings accounts, mortgages, cash and wealth management, insurance and more. The finance company has an A+ rating from the Better Business Bureau. It operates in 50 states and is headquartered in Charlotte, North Carolina.
Bank of America Mortgage Loan Types, Details and Requirements
MoneyGeek’s Bank of America mortgage loan review highlights available loan products, requirements and fees borrowers may encounter.
Mortgage Types Offered
Bank of America offers the following mortgage loans:
- Conventional Loans
- VA Loans
- FHA Loans
- Jumbo Loans
- Doctor Loans
Bank of America also offers refinancing options that allow borrowers to lower mortgage payments, speed up their payoff, or get cash out of their home equity.
Mortgage Rates
Bank of America offers fixed mortgage rates for 30-, 20-, and 15-year mortgages and variable rates for mortgages ranging from five to 10 years. The bank’s website provides the most up-to-date rate information.
Additional Fees
While Bank of America does not mention fees on its official website, borrowers can ask for an estimate based on their mortgage needs. The bank offers origination fee discounts from $200–$600 to Prefered Rewards customers, based on their eligible tier at the time of mortgage application.
Minimum Borrowing Requirements
Conventional Loan
Borrowers must have a credit score of 620, a 3% minimum down payment and a maximum debt-to-income ratio of 43% for conventional mortgage loans.
VA Loan
The borrower must have a 660 credit score with no down payment required.
FHA Loan
The borrower must have a 600 credit score and a zero to 10% minimum down payment, depending on the credit score.
Jumbo Loan
The borrower must have a credit score of 720 with 20% minimum down payment required.
Doctor Loan
Customers must call 800-497-6076 and speak with a practice specialist to get this information.
Bank of America Mortgage Application Requirements
For borrowers and co-borrowers, the following six things are required to apply for a Bank of America mortgage loan:
- 1
W-2s for the last two years
- 2
Pay stubs for the past 30 days
- 3
Complete bank statements for all financial accounts and investments for the past two months
- 4
Signed personal and business tax returns (all pages and relevant schedules)
- 5
If self-employed, a copy of the most recent quarterly or year-to-date profit/loss statement
- 6
Copy of the signed Purchase and Sales Agreement
Is Bank of America Right for You?
Mortgage lenders offer different options for home buyers at different stages. This MoneyGeek mortgage loan review can help you determine whether Bank of America is the right mortgage lender for your needs.
Who Bank of America Is Perfect For
Bank of America offers homebuyers information needed to make informed decisions, making it a good choice for first-time homebuyers. It offers an education series on its website and useful tools, such as tips and calculators. Bank of America also has geographically-targeted competitive loan offers to assist aspiring homeowners in lower-income brackets.
Bank of America offers an award-winning online platform that guides borrowers through the mortgage process and customizes terms according to their needs. This platform also enables users to apply for a new mortgage and refinance their existing home. It also has features such as rate lock to help users avoid rate increases during the application process.
The bank, however, does not include detailed information on its website, so interested customers will need to speak with a lending specialist to get the finer details about available loans.
Who Should Not Choose Bank of America
Bank of America mortgage loans are ideal for first-time homebuyers. However, some may still fare better looking for mortgage lenders without down payment minimums or credit score requirements. Even though this lender offers assistance, it may not be enough for more modest homebuyers. Other banks offer more approachable mortgage loans at lower rates.
How to Apply for a Bank of America Mortgage Loan
Applying for a Bank of America mortgage loan is a multi-step process that includes the following:
- 2
Fill Out Application Form
Create your profile by sharing basic information, including your name, citizenship and social security number.
- 3
Wait for Approval
You’ll receive a prequalification letter and can check your application status on the website.
- 4
Review Loan Agreement
Read the agreement and contact a lending specialist online or face-to-face, if needed.
- 5
Sign Loan Agreement
You can sign documents electronically or face-to-face.
- 6
Make Payments
Schedule an appointment or pay online using PayPlan, a savings account of your choice or an eligible Bank of America account.
What to Do if You Are Rejected by Bank of America
The first step to coping with a mortgage loan rejection is to ask your lending specialist why you were denied. Remember that you have a right to ask for a specific answer within 60 days. Knowing why you were rejected will help you determine which measures you can take to increase your chances of approval in the future.
Frequently Asked Questions About Mortgages From Bank of America
MoneyGeek has answers to the most commonly asked questions about Bank of America mortgages.
What types of properties are eligible for Bank of America mortgage loans?
Bank of America offers a wide array of mortgage loan products to home buyers — from those looking for a starter home to buyers looking to refinance or purchase investment properties.
Who can apply for a Bank of America mortgage?
The minimum borrower requirements vary between loan products. In general, applicants need a credit score of at least 620 and should be able to afford a down payment of at least 3%.
What types of mortgage loans does Bank of America offer?
Bank of America offers a wide variety of mortgage products, including conventional fixed- and adjustable-rate mortgages, jumbo loans, FHA and VA loans, home equity loans and refinancing loans. It also provides qualified borrowers with low down payment loans and doctor loans.
Is there a borrowing limit for Bank of America mortgages?
Every home loan situation is different, and the prequalification process will help you learn how much you can borrow. A Bank of America lending specialist will work closely with you to develop a plan that fits your needs.
What is the minimum down payment Bank of America will accept?
Depending on the purchase price of your home and the loan program you choose, you may be required to make a down payment that ranges from 3% to 20%. Only VA loans are exempt from minimum down payment requirements.
Does Bank of America require private mortgage insurance (PMI)?
If you put down less than 20% of the home’s purchase price, you’ll most likely need PMI.
Does Bank of America require a property appraisal?
Yes. Bank of America will schedule an appraisal as part of reviewing your home loan application, and you'll receive a copy at closing.
About Christopher Boston
Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.
Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.
sources
- Bank of America. "Home Loans Frequently Asked Questions." Accessed November 6, 2024.
- Bank of America. "How Credit Scores Affect Your Mortgage Rate." Accessed November 6, 2024.
- Bank of America. "How to Apply for a Mortgage." Accessed November 6, 2024.
- Bank of America. "Mortgage Rates." Accessed November 6, 2024.
- Bank of America. "Record 81% of Bank of America Mortgage Applications Initiated Through Digital Mortgage Experience." Accessed November 6, 2024.
- Better Business Bureau. "Bank of America Profile." Accessed November 6, 2024.
- Federal Reserve System. "Large Commercial Banks." Accessed November 6, 2024.