Bank of America announced a mortgage program exclusively for police officers, firefighters, teachers and medical workers with an insurance feature that will repay all or a portion of their outstanding mortgage balance, up to $300,000, in the event of accidental death, permanent paralysis or dismemberment.
The Neighborhood Champions® Protected Mortgage™ is available to an estimated 16 million professionals, according to U.S. Census figures. Additionally, the insurance coverage applies to the first two listed co-borrowers on the loan.
The significance of these loans extends well beyond protection coverage to basic housing affordability issues, according to Floyd Robinson, president of Consumer Real Estate for Bank of America.
“Too many Americans in these occupations of honor simply cannot find and afford quality housing, especially in metropolitan areas,” said Robinson, “Neighborhood Champions Protected Mortgage not only helps these heroes realize the dream of homeownership, but also provides security and peace of mind should tragedy strike.”
Neighborhood Champions Protected Mortgage loans offer, among the other advantages, the availability of 100 percent financing, competitive loan rates, little or no down payment options and flexibility on credit scores and credit histories.
The inspiration for Neighborhood Champions Protected Mortgage came from Bank of America mortgage customer Adam Pierce, a 26-year-old Orange County, Florida sheriff’s deputy who was shot while on duty in 2005 and left paralyzed.
“My fellow officers, along with professional firefighters, face the constant danger that we could be wounded or killed in an instant,” Deputy Pierce said. “While we understand and accept the dangers in our mission, programs like Bank of America’s Neighborhood Champions Protected Mortgage give us some peace of mind that our families would be financially protected, if something were to happen to us.”
Bank of America has grandfathered the more than 8,000 existing Neighborhood Champions borrowers into the program.
The insurance benefit, available in all states and Washington, D.C., provides an Accidental Death and Dismemberment insurance policy for the first two co-borrowers on the loan. All Neighborhood Champions protected mortgage loans, regardless of size, are eligible for insurance. The loan payoff will be based on the loan balance or $300,000, whichever is less, up to the policy maximum of $300,000. Moreover, borrowers do not have to qualify, and receive coverage regardless of health status.
The availability of the Accidental Death and Dismemberment coverage is a significant enhancement to the program, and is tied directly to concerns among workers in dangerous jobs, such as firefighters and law enforcement personnel, that injury or death on the job could jeopardize the financial ability of their family to stay in the home. With low-to-no-down payment and credit guidelines combined, the program also makes it easier for these workers to realize the dream of homeownership.
Additionally, teachers, police officers, firefighters, medical workers and related occupations are eligible to receive a new rate discount on a Bank of America home equity line of credit or home equity loan. This special discount is only available by calling 1.888.870.9459.
Highlights – Neighborhood Champions Protected Mortgage program:
- The new feature of accidental death, dismemberment and paralysis insurance will cover the first two listed co-borrowers.
- All Neighborhood Champions Protected Mortgage loans, regardless of size, are eligible for the insurance.
- Insurance benefits are provided for covered accidental loss of life, limb, sight or hearing and include full or partial payoff of the loan, depending on the type of loss and the loan balance.
- The loan payoff will be based on the loan balance or $300,000, whichever is less, up to the policy maximum of $300,000.
- Insurance coverage also includes COBRA extension of up to $2,500 and adaptive home and vehicle coverage of up to $3,000.
- Insurance is provided by Minnesota Life Insurance Company. In New York, insurance is provided by Securian Life Insurance Company, an affiliate of Minnesota Life Insurance Company.
- Insurance premiums paid by Bank of America may be taxable; customers should contact their tax advisor.
- Eligible borrowers include full time educational staff in primary, secondary schools, colleges and universities, and part time teachers; full time sworn officers and law enforcement employees; full time firefighters and fire department employees; full-time medical staff including nurses, nursing-pharmacy-dental assistants, medical technicians and employees of a hospital, nursing facility or doctor’s office.
- Little or no down payment is needed from the borrowers own pocket. Gifts or other sources count toward the down payment. Bottom line: this is ideal for workers with limited savings or assets.
- Flexible credit guidelines – even for those without traditional credit histories. We consider a wide range of credit scores. A favorable 12 month payment history (rent, three monthly bills) may be sufficient.
- Homebuyers in the designated occupations may apply for mortgage financing through the Neighborhood Champions Protected Mortgage Program, receive guidance about the process of financing a home or learn more about this exclusive program by:
» Contacting a national Bank of America mortgage loan officer at 1.866.823.5446 or locate a local mortgage loan officer by calling 1.800.344.9403
» Visiting our Web page, www.bankofamerica.com/loansandhomes
» Contacting a mortgage broker and ask for the Neighborhood Champions Protected Mortgage Program provided only by Bank of America
Bank of America is committed to help all borrowers achieve the dream of homeownership. In 2005, more than one in three home loans originated by Bank of America were for minority borrowers. More than one in five loans originated by Bank of America were for low- to moderate- income borrowers. The bank has earned Freddie Mac’s Tier One Hall of Fame status, awarded for maintaining Freddie Mac’s highest servicing performance rating for five consecutive years. Included in this rating is recognition of Bank of America’s ability to prevent foreclosure for our customers experiencing financial difficulty.
About Bank of America
Bank of America is one of the world’s largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 55 million consumer and small business relationships with more than 5,700 retail banking offices, through more than 17,000 ATMs and award-winning online banking with more than 21 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 80 percent of the Global Fortune 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
