Bank of America on Monday will launch a 3% down payment home loan in partnership with Freddie Mac, but the bank will not retain any risk if the loans default.

The Charlotte, N.C., bank will sell the loans and mortgage servicing rights to Self-Help Federal Credit Union, a Durham, N.C., nonprofit community development lender. The "Affordable Loan Solution" program is available only to borrowers with incomes of less than 100% of an area's median income.

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