If you’re planning to buy a home in the U.S., Bank of America’s home mortgage options are some of the most flexible and comprehensive on the market. The bank offers a wide range of loan types, competitive terms, and exclusive incentives for both existing customers and first-time buyers. From traditional mortgages to specialized programs for doctors, veterans, and moderate-income households, Bank of America provides financing solutions for almost every profile. Let’s take a closer look at the loan types available, the rates and terms you can expect, and the unique benefits the bank offers.
Types of Bank of America Home Mortgages
Bank of America offers several home loan options to meet different needs. The Conventional loan is one of the most common, available with fixed rates for 10, 15, 20, or 30 years, as well as adjustable-rate options. The FHA loan, backed by the federal government, requires a down payment of 3.5% for borrowers with a credit score above 580, and 10% for those with scores between 500 and 579. VA loans, designed for veterans, offer 100% financing with no down payment required, and typically require a credit score between 600 and 620.
For higher-priced properties that exceed the standard loan limits set by the FHFA, Jumbo Loans are available — up to $5 million for primary homes and $3 million for vacation properties. Physician Loans cater to medical professionals, starting with just 3% down for homes up to $850,000 and gradually increasing to 15% for properties worth up to $2 million. Notably, student loan debt can sometimes be excluded from debt-to-income calculations with this loan type.
Other options include HELOCs (Home Equity Lines of Credit) and Cash-Out Refinancing, which allow homeowners to access funds based on their home’s built-up equity.
Loan Limits, Terms, and Rates
There’s no set minimum loan amount for Bank of America mortgages, which makes them accessible to a wide range of borrowers. The maximum for conventional loans follows FHFA limits. In this case, is up to $766,500 in most areas, and up to $1,149,825 in high-cost regions. Jumbo loans extend up to $5 million, depending on the property type.
Loan terms range from 10 to 30 years for fixed-rate mortgages, and adjustable-rate options (ARMs) come with initial fixed periods of 5, 7, or 10 years. Some newer products offer hybrid structures like 10/6 or 7/6 ARMs, which adjust semi-annually after the fixed term.
Interest rates vary based on the loan type. A typical 30-year fixed mortgage carries rates between 3.5% and 4.0%, while 15-year loans may have similar or slightly lower rates. Refinancing options can reach around 4.75%, and ARMs generally start between 2.75% and 3.25%.
Who’s Eligible to Apply?
To qualify, most conventional loans require a minimum credit score of 620. FHA loans typically ask for a 580 score with a 3.5% down payment, or at least 600, depending on the source. For VA and physician loans, a credit score between 600 and 620 is often ideal.
Down payment requirements vary: 0% for VA loans, 3% for affordable and physician programs, 3.5% for FHA, and over 5% for many conventional mortgages. Loan-to-value ratios (LTV) can go up to 100% for VA loans, 96.5% for FHA, and 80% for conventional loans without PMI.
Debt-to-income (DTI) ratios generally must stay under 28% for housing expenses and 36% overall, although some programs allow for higher thresholds. Additionally, Bank of America offers down payment grants and assistance with closing costs to eligible buyers.
Why Consider Bank of America for Your Home Mortgages?
One standout advantage of Bank of America is the range of support and incentives it offers to homebuyers. These include closing cost grants of up to $7,500 and down payment assistance up to 3% or $10,000, depending on your location.
If you’re part of the bank’s Preferred Rewards program, you can save up to $200 on the mortgage origination fee and qualify for discounted interest rates.
Additional perks include financial hardship assistance (like forbearance or loan modifications). Also, long-term rate locks up to 360 days for homes under construction — perfect for buyers needing more time to close.
Is Bank of America the Right Choice for You?
If you qualify for one of the bank’s special programs — or are already a Bank of America customer — this lender could be a great fit. With options like Affordable Loan Solution, VA Loans, and Physician Loans, and a strong support system in place, Bank of America offers robust solutions for many borrowers.
While the approval process may take longer in some cases, the potential benefits — such as grants, competitive rates, and personalized programs — often make it worth the effort.
Before applying, review your credit profile, evaluate your down payment capabilities, and compare fixed versus adjustable-rate options based on your financial goals. And if you’re already a Bank of America client, don’t forget to check out the discounts offered through Preferred Rewards.
All information in this and other BOISLA articles is subject to change over time. Please check for updates directly with the institutions and companies mentioned. Approval is subject to the institution’s review.
REFERENCES:
https://www.bankofamerica.com/
Read more about loans in https://boisla.com/category/loans/
