Bank of America launched a three-year, $50 million affordable mortgage initiative Tuesday that will allow 500 low- to moderate-income families in Chicago to buy homes.

The $50 million commitment is the first installment of a 10-year, $350 billion investment in community development that Bank of America has pledged nationwide in the communities where it operates.

The banking company will work with Chicago's government, Freddie Mac, Neighborhood Housing Services of Chicago, Chicago Urban League, and Consumer Credit Counseling.

It also plans flexible underwriting requirements and lower down payments. Ten housing developments will eventually be built in connection with the initiative.

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