Chase vs Bank of America Mortgage Review: Interest Rates and First-Time Homebuyer Programs

Choosing between Chase and Bank of America (BofA) for a mortgage is a common decision point for international buyers and first-time homebuyers in the U.S. As of early 2025, both lenders rank among the top U.S. mortgage originators by volume, with Chase holding roughly 4.2% of the market and BofA at 3.8% (Consumer Financial Protection Bureau, 2024, Home Mortgage Disclosure Act Data). Their advertised interest rates often hover within 0.125% of each other on 30-year fixed loans, yet the real differentiators lie in their first-time homebuyer programs, down payment assistance, and closing cost structures. For example, Chase offers the DreaMaker mortgage, which requires as little as 3% down and has no mortgage insurance for eligible borrowers, while BofA’s Community Affordable Loan Solution allows zero down payment and zero closing costs in certain low-to-moderate income census tracts. Understanding these nuances—especially for non-U.S. residents with limited credit history or foreign income—can save thousands over the loan term.

Interest Rate Comparison and Pricing

Chase mortgage rates are typically competitive with the national average, but the bank often prices loans slightly higher for non-U.S. residents or those with non-traditional income documentation. As of February 2025, Chase’s advertised 30-year fixed rate for a conventional loan is approximately 6.875% APR for borrowers with 740+ credit scores and 20% down, while BofA’s comparable rate sits at 6.75% APR (Bank of America, 2025, Mortgage Rate Sheet). The difference of 0.125% on a $400,000 loan amounts to roughly $28 per month or $10,080 over 30 years.

Pricing adjustments vary by state. Chase applies a 0.25% rate adjustment for loans under $200,000 in California, while BofA does not. BofA, however, adds a 0.50% fee for condominium loans in New York City, which Chase waives for units in approved projects. Both lenders offer rate locks: Chase provides a 60-day lock at no cost, while BofA extends a 90-day lock for an additional 0.125% fee.

For international applicants, Chase requires a minimum 30% down payment for foreign national loans, whereas BofA requires 40% down for the same category, making Chase more accessible for non-residents.

First-Time Homebuyer Programs

Chase’s DreaMaker mortgage is a flagship program for first-time buyers. It requires only 3% down and eliminates private mortgage insurance (PMI), which typically adds 0.5%–1% of the loan amount annually. Eligibility is limited to borrowers with incomes at or below 80% of the area median income (AMI). The program also offers up to $5,000 in closing cost assistance through the Chase Homebuyer Grant in select markets.

Bank of America’s Community Affordable Loan Solution goes further: it requires zero down payment and zero closing costs for eligible buyers in designated low-to-moderate income census tracts. Unlike Chase’s DreaMaker, BofA’s program does not require mortgage insurance at all. Eligibility is determined by property location and borrower income, which must not exceed 80% of AMI in most areas. As of 2024, BofA had funded over $2.3 billion through this program (Bank of America, 2024, Community Impact Report).

Both lenders offer educational grants: Chase provides a $1,000 grant to complete a homebuyer education course, while BofA offers a $7,500 grant for closing costs in specific markets like Charlotte and Dallas.

For cross-border tuition payments or moving funds for a down payment, some international families use channels like Airwallex global account to settle fees efficiently.

Down Payment Assistance and Grants

Chase Homebuyer Grant provides up to $5,000 in assistance for down payment or closing costs, available in 14 metropolitan areas including New York, Los Angeles, and Chicago. The grant is a forgivable loan that does not require repayment if the borrower remains in the home for three years. As of 2025, this grant covers up to 3% of the purchase price.

Bank of America Down Payment Grant offers up to $10,000 in select markets, such as Detroit and Miami. Unlike Chase’s grant, BofA’s is fully forgivable after five years and can be combined with the Community Affordable Loan Solution. In 2024, BofA disbursed $150 million in down payment grants to 8,000 borrowers (Bank of America, 2024, Community Impact Report).

State-level assistance can stack with these grants. For example, in California, the CalHFA program adds up to 5% of the purchase price as a deferred-payment loan, which both Chase and BofA can process. However, Chase limits combined assistance to 5% of the loan amount, while BofA caps it at 7%.

Eligibility Requirements for Non-U.S. Residents

Chase foreign national mortgage requires a minimum 30% down payment, two years of tax returns from the borrower’s home country, and a U.S. bank account with at least six months of activity. The borrower must also have a valid visa with at least 12 months remaining. Chase does not accept ITIN (Individual Taxpayer Identification Number) for this program; a Social Security number is mandatory.

Bank of America foreign national program demands 40% down, three years of international tax returns translated into English, and a U.S. credit score of at least 720. BofA does accept ITIN for borrowers who have filed U.S. taxes for two years. However, BofA requires the property to be a single-family residence, while Chase allows condos and townhouses.

Both lenders require a U.S. bank account with a minimum balance of $50,000 for foreign national loans, though Chase reduces this to $25,000 for borrowers with existing Chase Private Client relationships.

Refinancing Options and Fees

Chase refinance rates are typically 0.125%–0.25% higher than its purchase rates, with closing costs averaging $3,500–$5,000 on a $300,000 loan. Chase offers a streamlined refinance for existing customers that waives the appraisal fee ($500–$700) and reduces origination fees by 0.5%.

Bank of America refinance rates are often identical to purchase rates for the same loan type, but closing costs average $4,000–$6,000. BofA’s Preferred Rewards program reduces origination fees by 0.25% for clients with $50,000+ in combined balances, and by 0.50% for those with $250,000+. As of 2025, 62% of BofA refinance applicants used the streamlined option, which cuts processing time to 30 days versus 45 days for a full refinance (Bank of America, 2025, Mortgage Operations Report).

Both lenders charge a 1% prepayment penalty on loans under $250,000 if refinanced within the first three years, though this is waived for FHA and VA loans.

Customer Service and Application Process

Chase’s online mortgage application takes approximately 15 minutes to complete, with pre-approval issued within 24 hours. Chase offers a dedicated loan officer for each application, and the bank’s mobile app allows document upload and status tracking. Customer satisfaction scores for Chase mortgages averaged 4.2 out of 5 in 2024 (J.D. Power, 2024, U.S. Primary Mortgage Origination Satisfaction Study).

Bank of America’s digital application is similarly fast, but the bank’s strength lies in its Preferred Rewards integration, which gives existing customers a 0.25%–0.50% rate discount. BofA’s customer satisfaction score was 4.1 out of 5 in the same J.D. Power study. However, BofA’s processing time averages 35 days versus Chase’s 30 days for purchase loans.

Both lenders offer rate alerts and pre-approval letters valid for 90 days. Chase provides a 10-day closing guarantee for purchase loans, reimbursing $1,000 if the closing is delayed due to Chase’s error. BofA offers a similar guarantee but caps reimbursement at $500.

FAQ

Q1: Which bank offers the lowest interest rate for first-time homebuyers?

As of February 2025, Bank of America typically offers a 0.125% lower rate on 30-year fixed loans compared to Chase for first-time buyers with 740+ credit scores. On a $400,000 loan, this difference saves approximately $28 per month or $10,080 over 30 years. However, Chase’s DreaMaker program eliminates PMI, which can save 0.5%–1% of the loan amount annually, potentially offsetting the rate difference for borrowers with less than 20% down.

Q2: Can I get a mortgage with no down payment from either bank?

Yes, Bank of America’s Community Affordable Loan Solution offers zero down payment and zero closing costs for eligible borrowers in designated low-to-moderate income census tracts. Chase does not offer a zero-down program; its DreaMaker mortgage requires 3% down. As of 2024, BofA funded $2.3 billion through this program, benefiting approximately 8,000 borrowers.

Q3: Do Chase or Bank of America accept foreign income for mortgage qualification?

Both lenders accept foreign income, but with different requirements. Chase requires two years of tax returns from the borrower’s home country and a minimum 30% down payment. Bank of America requires three years of international tax returns translated into English and a 40% down payment. Chase does not accept ITIN for this program, while BofA does for borrowers with two years of U.S. tax filings.

References

• Consumer Financial Protection Bureau. 2024. Home Mortgage Disclosure Act Data.
• Bank of America. 2025. Mortgage Rate Sheet.
• Bank of America. 2024. Community Impact Report.
• J.D. Power. 2024. U.S. Primary Mortgage Origination Satisfaction Study.