Bank of America Mortgage Ratings at a Glance
Bank of America offers digital tools, personal services, and products to buy a home, refinance your current mortgage, or tap into your home equity.
Learn more about its financial services in this Bank of America Mortgage Review.
Who is Bank of America for?
Many home buyers can benefit from working with Bank of America. It’s one of the best lenders for first-time home buyers because of its affordable mortgages and readily available personal service.
It’s also a good choice if you want a better mortgage rate or access to the equity in your home.
Bank of America does not offer USDA loans. It also only offers its Preferred Rewards discounts to borrowers who maintain an average balance of $20,000 or more.
Bank of America offers home purchase and refinance loans and home equity lines of credit. Take a look at our breakdown of its most popular mortgage products.
Loans for the purchase of a house
Bank of America Home Buyer Loans include:
- Conventional mortgages, which are not affiliated with a government program. These mortgages may have higher credit score requirements than other types of mortgages. Conventional mortgages can be conforming or non-conforming. Compliant mortgages meet the requirements of Fannie Mae and Freddie Mac, which are private corporations created by Congress to help stabilize the housing market. Non-conforming mortgages do not meet these requirements.
- FHA Loans are insured by the Federal Housing Administration. These mortgages come with a low down payment and low credit score requirements.
- AV loans are provided by the Department of Veterans Affairs. These loans are for veterans and current service members who meet service requirements. Qualifying borrowers may not need to make a down payment. These loans also have flexible credit requirements.
- Giant Loans are loans for borrowers who buy a home that costs more than the purchase price limits set by Freddie Mac and Fannie Mae. The set price limit is $510,400 in most areas, so loans beyond that are considered jumbo loans.
- Affordable loan solution and Freddie Mac Home Possible mortgages offer a 3% down payment. Both of these loans have income and loan amount limits. The affordable loan solution does not require you to purchase mortgage insurance, which is a significant savings.
Refinance loans replace your current mortgage with a new loan. Bank of America offers conventional, FHA, and VA refinance loans. If you qualify, you may be able to use a Bank of America refinance loan to:
- Improve your mortgage conditions. Many homeowners refinance to change the terms of their mortgage. You could refinance for a lower monthly payment or a lower interest rate. You can also refinance to pay off your home sooner or switch from a variable rate loan (rate the lender can change) to a fixed interest rate (the interest rate never changes).
- take liquid. You can also refinance more than you owe. Let’s say you owe $100,000 on your mortgage. You request a cash refinance of $125,000. Bank of America approves you and pays off your loan balance. You receive $25,000 in cash and now have a mortgage of $125,000.
Home equity line of credit
A home equity line of credit allows you to borrow against the equity in your home. The equity in your home is the difference between the value of your home and the value of your home. Let’s say you own a house worth $175,000. You owe $100,000 on your mortgage. This means you have $75,000 in equity.
Bank of America offers a home equity line of credit (HELOC). A HELOC works much like a credit card in that you are approved for a line of credit. You borrow as much as you need up to the maximum. You don’t have to borrow money immediately, and you can usually borrow multiple times as long as you don’t go over your credit limit.
HELOCs have 2 phases – a draw period and a redemption period. Your drawing period is when you borrow money and usually lasts 10 years. You start paying off your line of credit as soon as you borrow money. After 10 years, your repayment period begins. You can no longer borrow money and continue to repay what you have borrowed.
Bank of America takes an average of 45 days to complete a home loan. Why is it so long? The mortgage process involves several steps.
It starts when you submit your application. After that, you will usually order a home inspection. A home inspection is when a professional examines your home and advises you if any repairs are needed.
Bank of America will review the information in your request. You may need to answer questions or provide additional documents. You will also need to take out home insurance. Bank of America usually orders an appraisal to assess the value of your home.
Once all of your information has been collected, Bank of America will let you know if you have been approved. You will set a time to sign your loan documents and pay the funds due.
Your credit score is an essential part of the mortgage process. It summarizes your credit history for lenders and represents how you manage credit. Lenders have a minimum credit score for all borrowers. They also use your credit score to decide what interest rate to offer you.
Bank of America requires a credit score of 620 or higher. From there, it takes into account your credit score along with other factors to decide your mortgage rate.
When you apply for a Bank of America mortgage, you will need to provide several documents. You will need:
- 2 years of W-2
- Payslips of the last 30 days
- 2 months of bank and investment account statements
- 2 years of tax returns
- A copy of your purchase contract
If you are self-employed, you will also need to provide your business tax returns. You may be asked to provide additional documents depending on your situation.
You have several options for contacting customer service. You can visit a local branch or make an appointment with a loan officer using the Bank of America website. This option allows you to provide some details about what you want to discuss.
You can also call Bank of America at 866-466-0979. Its representatives are available from 8 a.m. to 10 p.m. ET Monday through Friday and 8 a.m. to 6:30 p.m. ET on Saturday.
Bank of America’s Home Loan Navigator allows you to track your home loan through its website or mobile app. You can sign and submit documents for the loan and see the next steps in the process.
Is a Bank of America mortgage right for you?
Bank of America might be right for you if you like being able to walk into a branch and talk to someone about your home loan. Its mobile app also makes it a great choice for borrowers on the go.
Bank of America is one of the best mortgage companies for current homeowners. It offers a range of refinance options as well as HELOCs so you can improve your terms or tap into your capital.
If you tend to keep $20,000 or more in your bank accounts, you might also want to consider Bank of America for its favorite rewards program. It offers up to $600 off origination fees and up to 0.375% off HELOC interest rates, along with other banking benefits.
With a variety of services for new and current homeowners, Bank of America can provide you with personalized, tailored service.
questions and answers
Is it good to get a mortgage with Bank of America?
Yes, it’s usually a good idea to get a mortgage from Bank of America because their mortgage rates tend to be low.
What credit rating is needed for a Bank of America mortgage?
You need a credit score of at least 620 to qualify for a mortgage from Bank of America.
What FICO score does Bank of America use?
Bank of America uses the FICO Score 8 which is based on TransUnion data.