Introducing Bank of America

Bank of America is a national bank that offers mortgages with branches in 38 states and Washington, D.C. Mortgage borrowers can apply in person, by phone or online. The online experience lets you keep track of your loan’s status and sign documents electronically.

With no minimum loan amounts and high jumbo loan limits, Bank of America serves financially diverse borrowers. However, this may not be the lender to choose if you’re on a tight deadline because it doesn’t promise fast preapprovals or quick closings.

What Bank of America Offers

Bank of America offers the standard mortgage loans that most lenders offer: conventional, FHA, VA and jumbo loans. The lender offers purchase loans, rate-and-term refinance loans, cash-out refinancing and home equity lines of credit. With some loan types, you can choose an adjustable rate instead of the standard fixed rate.

As for specialty products, BofA offers doctor loans for high-earning medical professionals. For borrowers with more modest means, there’s the Affordable Loan Solution program. It lets applicants who qualify for home buyer assistance borrow up to their area’s conforming loan limit with just 3% down while still getting a competitive interest rate. These loans require private mortgage insurance (PMI), but the cost will be lower than usual. Income limits apply.

Because of its competitive rates, convenient application process and low down payment loan products, Bank of America has earned a spot on several of our best mortgage lender lists:

If you want a USDA loan, though, you’ll need to look elsewhere. Also, BofA doesn’t offer non-qualified mortgages that can help borrowers who have outside-the-box financial situations.

Loan Types

Bank of America offers these mortgage types:

  • Fixed-rate mortgage
  • Adjustable-rate mortgage (ARM)
  • Affordable Loan Solution
  • FHA
  • VA
  • Refinance
  • Home equity line of credit (HELOC)
  • Cash-out refinance
  • Jumbo
  • Doctor loan

If you want a USDA loan, you’ll need to look elsewhere. Also, BofA doesn’t offer non-qualified mortgages for smaller loans, which can help borrowers who have outside-the-box financial situations.

Loan Minimum

Bank of America doesn’t have a loan minimum for a first mortgage, according to a company spokesperson. Being able to get a small mortgage loan isn’t a given, but it’s important for people who want to purchase, renovate or refinance less-expensive properties.

Loan Maximum

Bank of America’s maximum mortgage size is $5 million with a jumbo mortgage. You can apply for a larger, custom program mortgage if you’re a Bank of America wealth management client, according to a company spokesperson.

Try Forbes Advisor’s mortgage calculator to estimate how much you can afford.

Loan Terms

Bank of America offers 15- and 30-year fixed loan terms and 5/6 adjustable-rate loans on conventional and jumbo mortgages. For some loans, 10/6 and 7/6s ARMs are also available.

The bank’s website and customer service reps lack sufficient information about loan types and terms. Prospective borrowers are required to make an appointment with a loan officer for more details.

Loan Servicing

If you get a mortgage from Bank of America, the bank might also be your mortgage servicer—the company you make your monthly payments to and get customer service from when you need help with your loan.

However, BofA may sell your mortgage servicing rights to another company, which means you’ll make your payments to the new company. Consumers have no control over if or when their lender will sell their mortgage servicing rights. It’s best to choose a lender based on how good of a deal they offer and your customer service experience as a loan applicant. Don’t assume you will be working with the company long term.

Bank of America Mortgage Offers and Discounts

Bank of America offers closing cost grants up to $7,500 and down payment assistance up to 3% of the home’s purchase price or $10,000 (whichever is less) for lower-income borrowers in certain locations.

The company also offers a $200 origination fee discount for its existing banking customers with at least $20,000 in deposits.

Repayment Assistance

Bank of America offers several repayment assistance options for homeowners struggling to make monthly mortgage payments. These include forbearance (deferred payments), loan modification (revised loan terms), government assistance, short sale or deed in lieu of foreclosure.

Borrowers can call Bank of America at 1-800-669-6650, Monday through Friday, from 8 a.m. to 8 p.m. ET. They can also contact the U.S. Department of Housing and Urban Development online or at 1-800-569-4287 for free or low-cost foreclosure prevention counseling.

Minimum Borrower Requirements

All lenders and mortgage types have minimum borrower requirements. Here’s what to expect with Bank of America.

Minimum Credit Score

Bank of America doesn’t disclose its minimum credit score requirements. Here are the minimum credit scores that lenders typically require for certain loans:

  • Conventional. 620
  • FHA. 580
  • VA. 580
  • Jumbo. 680

Debt-to-Income Ratio

Bank of America doesn’t disclose the maximum debt-to-income (DTI) ratio it allows. Typically, you’ll need a DTI below 50% to get approved for a mortgage. However, you’ll have a better chance of qualifying with a DTI below 36%. A higher ratio may be okay if you’re financially strong in other areas, such as your credit score, down payment or, in the case of a doctor loan, your income potential.

Minimum Down Payment

With any lender, the minimum down payment varies by loan type and amount. Here’s what we know about BofA’s minimums.

LOAN TYPE MINIMUM DOWN PAYMENT
Fixed rate
5%
ARM
5%
Affordable Loan Solution
3%
FHA
Not disclosed (typically 3.5%)
VA
0%
Jumbo
5%
Doctor
3% on mortgages up to $850,000 5% on mortgages up to $1 million 10% on mortgages up to $1.5 million 15% on mortgages to $2 million

What Fees Will You Pay?

All mortgage lenders charge fees, but some charge higher fees than others. Here’s what you can expect to pay when getting a mortgage with Bank of America.

Closing Costs

You can estimate your mortgage closing costs in detail with Bank of America’s closing cost calculator. Few lenders that we’ve reviewed offer this level of transparency on their websites.

We don’t know how the calculator’s results stack up against what you’d see on an official loan estimate. But its breakdown of points, the lender’s origination fee and estimated third-party fees seem plausible, based on our experience. The calculator will also tell you if you’re eligible for closing cost assistance based on the information you enter.

Sample Closing Cost Breakdown

Here’s what you might pay in closing costs for a 30-year, fixed-rate mortgage to buy a $400,000 home with 5% down in a suburb of St. Louis without closing cost assistance.

CATEGORY FEE ESTIMATED COST
Lender Fees
0.915 points
$3,477
Origination
$1,130
Third-Party Fees
Appraisal
$660
Credit report
$36
Tax service
$91
Flood certification
$4
Life of loan flood monitoring
$8
Closing/escrow
$535
Lender’s title insurance
$300
Mortgage recording
$180
Owner’s title insurance (optional)
$74
Prepaid Items
Interest (15 days)
$1,093
Homeowners insurance
$1,600
Escrow Account
Homeowner's insurance (estimated 2 months)
$267
Mortgage insurance (estimated 2 months)
$0
Property taxes (estimated 2 months)
$1,052
Total
$10,507 (2.765% of $380,000 loan)

How To Apply for a Bank of America Mortgage

You can apply for a Bank of America mortgage online, by phone or in person by following these steps:

 1. Get prequalified (maybe). Prequalification can take as little as one hour but only gives you a general idea of what you can borrow. It may be helpful when you’re just starting to think about buying a home.

2. Get preapproval. Preapproval involves a detailed review of your finances, so be prepared to submit information about your income, employment, debts and assets. A preapproval letter is typically good for 90 days but isn’t a commitment to lend. Preapproval with Bank of America takes up to 10 business days, considerably slower than many competitors.

3. Find a home, make an offer and go under contract. No preapproval is guaranteed to become a loan until the lender approves the property you want to buy.

4. Lock in your rate. Bank of America won’t allow you to lock your rate until you have a home under contract. You must lock your rate at least 10 days before closing. A typical rate lock with BofA is good for 45 days for a purchase loan and 60 days for a refinance.

What To Do If You Get Turned Down

If you don’t get approved for a mortgage with Bank of America, don’t give up. Many people get rejected for a mortgage several times before they get approved. Here’s what to do if you get denied:

1. Apply with multiple lenders. Even if one lender denies your mortgage application, another may approve it.

2. Work with a mortgage broker. At no cost to you, a broker submits applications to multiple lenders on your behalf. An excellent broker will also know which lenders are most likely to approve an applicant like you.

3. Find out why you were denied. A lender who denies your application has to tell you why. This information can reveal exactly what you need to work on to become a stronger applicant.

4. Work on your credit score. A few months of paying down high-interest debt and making on-time payments could boost your credit score and decrease your DTI ratio.

5. Team up. Applying with a co-signer or co-borrower could help you get approved. But choose your co-signer wisely. Dealing with the fallout if your financial circumstances worsen or your relationship sours could make both parties regret this decision.

Bank of America Customer Reviews

Mortgage customers filed 1,960 complaints about Bank of America with the Consumer Financial Protection Bureau (CFPB) from July 30, 2021 through July 30, 2024. Most complaints are about trouble with the payment process, struggling to pay the mortgage or applying for a home loan.

On Zillow, Bank of America had 4.8 out of 5 stars in July 2024, with more than 13,000 consumer reviews. Several recent comments praised the company’s competitive mortgage rates and how helpful their loan officer was throughout the process.

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Alternatives to Bank of America Mortgage

When you’re shopping for a mortgage, getting multiple loan estimates is the best way to find the lowest rates and fees and check out the lender’s customer service. Here are three other lenders you might consider and how they compare to Bank of America.

Rocket Mortgage vs. Bank of America

Rocket Mortgage and Bank of America are both large companies that offer the most popular mortgage types, though Rocket Mortgage specializes in home loans while BofA offers a full suite of banking and lending services. Both also offer closing cost and down payment assistance in similar amounts to qualifying borrowers.

Both companies allow you to apply online or by phone, but only Bank of America can offer in-person assistance through its branches in 38 states and Washington, D.C. Only Bank of America offers physician home loans.

Wells Fargo vs. Bank of America Mortgage

Wells Fargo and Bank of America are both major banks that offer conventional, FHA, VA and jumbo home loans. Only BofA offers home equity lines of credit, and only Wells Fargo offers construction loans and cash-out refinance mortgages. Both lenders’ interest rates are comparable to national averages.

Chase vs. Bank of America Mortgage

Chase and BofA are two of the nation’s largest full-service banks. Both offer mortgage discounts to their banking customers who meet minimum balance requirements and allow all borrowers to apply for a mortgage online, by phone or at a branch.

Both also offer conventional, FHA, VA and jumbo loans, but only BofA offers HELOCs and doctor loans. Chase’s home buyer grants aren’t as generous as BofA’s. Both companies’ mortgage rates are similar to national averages.

Methodology

We graded Bank of America based on features that have a meaningful impact on the cost of a mortgage and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.

We award bonus points if a lender offers a specialty rate discount or mortgage product, a home equity product or maintains a fully online mortgage application process.

Our scoring method is broken down as follows:

  • Interest rate.20%
  • Loan options. 20%
  • Time to close.20%
  • Accessibility. 20%
  • Customer service experience.20%
  • Bonus points.Up to 25 points

We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.