How Does the Bank of America First Time Home Buyer Program Work?

How much can I get from Bank of America’s first-time home buyer program?

The amount depends on which grant fits the expense. According to Bank of America’s program information, the Down Payment Grant provides up to 3% of the purchase price, with a $10,000 maximum, for a down payment in select markets. The lender says America’s Home Grant provides a credit of up to $7,500 for eligible nonrecurring closing costs or, in some cases, a permanent interest-rate buydown.

These are separate forms of help, not one pool of cash for any homebuying cost. The Down Payment Grant cannot be used for closing costs, while America’s Home Grant cannot be used for a down payment. Bank of America also says the Down Payment Grant is not available with every mortgage product.

The figures above are the amounts stated in Bank of America’s program information; the provided source does not specify a publication year. Neither maximum guarantees that a particular buyer will receive the full amount. The eligible expense, loan, property, and current program terms determine what applies.

Who qualifies for the Bank of America Down Payment Grant?

To qualify for the Down Payment Grant, a buyer must meet the program’s first-time-buyer definition and the location, loan, and other requirements Bank of America sets for the specific purchase. Bank of America defines a first-time buyer for this grant as someone who has not owned a home during the preceding three years.

That definition is specific to the grant. It does not by itself confirm eligibility for America’s Home Grant or any other mortgage assistance. The available Bank of America information does not give a universal income limit or list every eligible loan type, so those details need to be checked with a lending specialist.

Use this checklist when asking about eligibility:

• First-time-buyer status: Confirm whether you meet the three-year no-homeownership rule for the Down Payment Grant.
• Location: Ask whether the program is active in the property’s market and whether the exact address qualifies.
• Income: Ask the lender to assess your household income against current program rules; the provided Bank of America information does not state a general income threshold.
• Occupancy: Confirm how the program treats the way you plan to use the home; the available program details do not set out a complete occupancy rule.
• Loan type: Check that the proposed mortgage product works with the grant. Bank of America says the Down Payment Grant is not available with every mortgage product.
• Education: Ask whether the grant or mortgage requires homebuyer education. The provided Bank of America information does not specify a course requirement.

These questions separate what the public program description confirms from terms that require a lender’s review. A “first-time buyer” label alone does not establish that the address, mortgage, or household meets the remaining conditions.

Can Bank of America’s grant be used for closing costs or only the down payment?

It depends on the grant: the Down Payment Grant is for the down payment, while America’s Home Grant is for eligible closing costs or, in some cases, a permanent rate buydown. Bank of America lists title insurance and recording fees as examples of nonrecurring closing costs eligible for America’s Home Grant.

This distinction matters when estimating funds due at closing. A credit assigned to eligible closing costs does not fill a down-payment gap, and down-payment assistance does not automatically cover settlement charges. Ask the lender to show where the grant would appear in the transaction and which costs it can offset.

Bank of America describes both programs as not requiring repayment. Its information also warns that the Down Payment Grant may be taxable and says a 1099-MISC will be issued. The IRS says down-payment assistance from a program sponsored by a tax-exempt organization generally is not included in a homebuyer’s federal gross income; for seller-funded assistance, it generally reduces the home’s cost basis. The IRS guidance covers those categories and does not determine the treatment of every Bank of America grant. Confirm the specific grant’s tax treatment with a tax professional.

Is the Down Payment Grant available where I’m buying a home?

The Down Payment Grant is available only in select markets, so the property’s location must be checked directly with Bank of America. The bank directs buyers to its Down Payment Center and a lending specialist to review program options.

Start with the target address rather than relying on a general list or an assumption that a nearby property qualifies. Ask the specialist to check the exact property and proposed loan together. Then confirm the amount, permitted use, eligibility conditions, and whether the program remains available for that transaction before making an offer.

1. Enter the property location in Bank of America’s Down Payment Center or ask a lending specialist to check it.
2. Share the expected mortgage product and ask whether it is compatible with the grant.
3. Confirm the household’s eligibility, eligible expenses, grant amount, and any conditions in writing with the lender.
4. Compare official Loan Estimates before choosing a mortgage. The Consumer Financial Protection Bureau recommends checking program eligibility and comparing Loan Estimates; it also notes that many state and local programs offer down-payment assistance usable with regular FHA or conventional loans.

That comparison can help put a bank grant alongside other options without assuming the programs can be combined. The CFPB says state, local, and nonprofit programs often focus on low- and moderate-income first-time buyers, while some also serve repeat buyers or target particular occupations or neighborhoods. Its guidance does not establish whether any specific outside program can be combined with Bank of America’s grants. Ask both program administrators.