One of the largest banks in the U.S. Bank of America is also one of the biggest mortgage lenders, with a reputation for stellar customer service and low rates.
We love that, besides a well-developed digital presence, Bank of America has 3,700 locations nationwide, giving borrowers the choice of an online or in-person lending experience.
We also like that it offers various low-down-payment mortgage options and down payment assistance programs. Depending on where you live, you could qualify for up to $17,500 in down payment or closing cost grants.
- Affordable Loan Solution® mortgage only requires 3% down
- Up to $10,000 in down payment assistance for eligible borrowers
- Up to $7,500 in closing cost grants in select markets
- No annual fees or closing costs for HELOCs
- Existing BoA customers eligible for discounted rates or fees
- Lender fees not disclosed
- No USDA loans, home equity loans or reverse mortgages
Bank of America mortgage review
- Pros and cons of a Bank of America mortgage
- Bank of America types of mortgages
- How do I qualify for a Bank of America mortgage?
- Benefits and discounts
- Refinancing
- Customer service
- How Bank of America compares to other lenders
- How do I apply for a mortgage with Bank of America?
- Is Bank of America right for me?
- Bank of America FAQs
- Our methodology
Pros and cons of a Bank of America mortgage
- Low average rates and fees
- Several down payment assistance programs
- 3,700 branches nationwide
- HELOCs available
- No USDA loans
- No home equity loans
- Does not disclose minimum credit score or income requirements
Bank of America types of mortgages
Bank of America offers conventional and government-backed loans in all 50 states.
- Fixed-rate: Borrowers keep the same rate for the life of their loan. Bank of America offers fixed-rate terms of 10, 15, 20 and 30 years.
- Adjustable-rate: Bank of America offers adjustable-rate mortgages with a fixed rate for the first five, seven or ten years, fluctuating every six months thereafter.
- FHA loans: Backed by the Federal Housing Administration (FHA), FHA loans only require 3.5% down for borrowers with a 580 FICO score or 10% for borrowers with a 500.
- VA loans: Veterans and active-duty service members can apply for this lower-rate loan without a down payment or private mortgage insurance. Lenders typically require a 620 for a VA loan.
- Jumbo loans: A jumbo loan exceeds the conforming limits set by the Federal Housing Finance Agency. BoA approves jumbo loans of up to $5 million.
- Physician loans: Medical professionals can qualify for a low down payment mortgage, with student loan debt excluded from eligibility considerations. Residents and fellows can close 90 days before the start of their residency programs.
How do I qualify for a Bank of America mortgage?
- Credit score: Undisclosed. Lenders typically require a 620 for conventional loans, although Bank of America does accept nontraditional forms of credit for conventional, FHA and VA loans.
- Down payment: 3% for Affordable Loan Solution mortgages, 5% for conventional loans, 10.01% for jumbo loans
- Debt-to-income ratio: Undisclosed. Typically, lenders prefer borrowers to have a DTI ratio under 50%, and preferably 43% or less.
Benefits and discounts
Bank of America offers a variety of assistance for both first-time and repeat homebuyers. It does not generally release income requirements, however.
Preferred Rewards Program
Bank of America customers who meet balance requirements can get up to $600 off their origination fee or qualify for a rate reduction on a home loan or home equity line of credit.
Down Payment Grant
Borrowers in select areas can get up to 3% of their overall home cost as a grant, up to $10,000. The minimum loan-to-value must be at least 80% and income requirements apply, although BoA does not disclose them publicly.
America's Home Grant
Qualified borrowers can get up to $7,500 in grants toward non-recurring closing costs or to buy down their mortgage rate, although a down payment of at least 20% is required. Eligible markets are listed on the Bank of America website.
The Affordable Loan Solution
First-time homebuyers who don't exceed 100% of the area median income in certain minority-majority markets can be approved for a home loan with as little as 3% down with the Affordable Loan Solution. There is no minimum credit score requirement and the loan can be combined with down payment assistance.
Refinancing
Bank of America offers cash-out and rate-and-term refinancing as well as HELOCs.
- Credit score: Undisclosed. Lenders typically prefer a FICO score of at least 620.
- Debt-to-income ratio: Undisclosed. Lenders typically require a DTI ratio under 50% and prefer 43% or lower.
- Home equity: 5% for conventional refinancing, 10.01% for jumbo
Customer service
Bank of America has one of the largest networks of branches nationwide, making it easy to work with a loan officer in your area.
It also benefits from a well-tailored website that lists sample mortgage rates and offers both a closing cost calculator and an affordability calculator.
The customer service line for mortgage clients has comparatively expansive hours: You can call 800-669-6607, Monday through Friday, from 8 a.m. to 10 p.m. ET and Saturday from 8 a.m. to 6:30 p.m. ET.
BoA ranks highly for customer satisfaction on both J.D. Power's 2024 mortgage origination and mortgage servicer surveys. It received an A from the Better Business Bureau, which did cite government actions against the business.
In November 2023, Bank of America was required to pay $12 million in fines for falsifying lending information required under the Home Mortgage Disclosure Act. According to the Consumer Financial Protection Bureau, loan officers failed to ask applicants specific demographic questions and then reported that applicants had declined to respond.
How does Bank of America compare to other mortgage lenders?
Here's how Bank of America stacks up to two leading mortgage providers.
| Bank of America | Chase Bank | PNC Bank | |
|---|---|---|---|
| Loan types | Conventional, jumbo, VA, FHA, physician loans | Conventional, jumbo, VA, FHA, DreaMaker, Standard Agency loan | Conventional, VA, FHA, USDA, jumbo, physician loan, HomeReady, Home Possible, construction, renovation, PNC Community Loan |
| Credit score | Undisclosed | Conventional: 620 Jumbo: 680 | 620 |
| Terms | Fixed-rate: 10, 15, 20 and 30 years; ARM: 5/6, 7/6, 10/6 | Fixed-rate: 15-year, 30-year Adjustable rate: ⅚, 7/6, 10/6 | Fixed rate: 10, 15-, 20-, and 30-year; ARM: 7/6 and 10/6 |
| Perk | Some existing customers can get a $600 discount on origination fee or a rate discount on mortgage | 21 days to close with guarantee of $5,000 | Community loan allows certain homebuyers to put 3% down with no PMI |
| Best for | Down payment assistance | In-person service | Uncommon loan types |
Bank of America vs. Chase Bank
These two banking juggernauts are both highly rated for customer service, with thousands of branches nationwide, rate discounts for existing customers and above-average rankings on J.D. Power's mortgage origination surveys.
- Existing Chase customers can get a rate reduction
- Above-average customer satisfaction scores, meaning you're likely to get stellar service and customer service pros who are ready to answer your questions and guide you through the process
- Closing timeline guarantee so you won't have to worry about whether or not you'll close on time.
- Homebuyer grants of up to $7,500, a huge cash infusion that homebuyers can put towards closing costs and down payments.
- The Chase DreaMaker℠ loan only requires 3% down payment for qualifying homebuyers, lower than the typical 5% minimum required for a conventional mortgage, making it a great option for those who haven't saved much for a down payment.
- No USDA loans or HELOCs
- No closing guarantee for refinancing
- Chase homebuyer grant only available in select areas.
Chase's clear credit score and DTI ratio requirements simplify the borrowing process, however, while Bank of America doesn't make its limits readily available. BoA does accept alternative forms of credit and, overall, has lower average rates and fees.
Read more: Chase Bank mortgage review
If time is of the essence, BoA states that its mortgages take 30 to 60 days to close, while Chase guarantees closure within 21 days or eligible borrowers can receive up to $5,000.
Bank of America vs. PNC Bank
In another big bank matchup, Bank of America and PNC both have branches nationwide and well-developed digital platforms with sample rates.
- With its lower-than-average mortgage rates, PNC is a great option for people prioritizing affordability
- Offers USDA loans (not all lenders do)
- PNC Community Loan requires only 3% down and no PMI, a great option for people that can't afford a large down payment but don't want to add the additional monthly cost of PMI
- $7,500 grant for down payment or closing cost, which can help those low on cash own a home.
- No home renovation or home equity loans
- High credit score requirement for FHA mortgage
- Ranked below average for customer satisfaction by J.D. Power
Bank of America was one of the top-rated lenders on both J.D. Power's 2024 mortgage origination and mortgage servicing surveys, while PNC ranked several places lower for mortgage origination and below average for mortgage servicing — which involves post-closing duties like sending statements, collecting payments and managing escrow accounts.
Read: PNC Bank mortgage review
When it comes to loan variety, PNC offers USDA, HomeReady, renovation loans and others that Bank of America does not.
Both banks have robust down payment assistance programs, but PNC's largest is $10,000 for borrowers with a qualifying income in select areas, while BoA offers up to $17,500 in combined assistance for those who qualify.
How do I apply for a mortgage with Bank of America?
You can apply for a mortgage on the Bank of America website or with a loan officer at one of its 3,700 branches nationwide. You can also begin the process on the phone by calling 866-466-0979.
To prequalify, you'll need proof of ID, income and employment, as well as bank statements and details on your assets and debts. You'll also need to provide your Social Security number and allow the bank to run a credit check.
When you find the home you want, you'll let Bank of America know that you plan to proceed. The bank will start the underwriting process, which will include an appraisal on the home and a title search.
Is Bank of America right for me?
Bank of America's low rates, well-established reputation and widespread availability make it an attractive lender, especially for borrowers looking for help with a down payment or other assistance.
Existing customers will also like being eligible for rate reductions or money off their origination fees.
But while it has a variety of loan options, Bank of America doesn't offer USDA loans, reverse mortgages or home equity loans.
In addition, its lack of transparency about credit scores and other requirements may frustrate some potential borrowers.
Bank of America mortgage FAQs
How long does it take to close on a Bank of America mortgage?
It can take 30 to 60 days to close on a Bank of America mortgage, with an average of 45 days — which is in line with the industry average. Your specific closing timeline will depend on several factors, though, including the type of loan, your credit history, when the appraisal and inspection can be scheduled and if the title search turns up any irregularities.
Does Bank of America offer reverse mortgages?
No, Bank of America stopped offering reverse mortgages in 2011, in the wake of the Great Recession. At the time, it said it was exiting "due to competing demands and priorities that require investments and resources be focused on other key areas."
Is Bank of America good for mortgages?
Bank of America is a great option for many mortgage customers, one that offers competitive rates, superior customer service, helpful down payment assistance and the resources of one of the largest financial institutions in the nation.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, availability, fees, down payment options, online experience and customer satisfaction.
In addition, we incorporate findings from independent sources, including J.D. Power's mortgage origination and servicer studies and the Better Business Bureau.
