Detroit Neighborhood Initiative

Who: Prospective Detroit Home Buyers that complete the NACA pre-purchase home buyer program

What: Can qualify for a new mortgage program that includes

  • No down payment
  • No closing costs
  • No fees
  • Below market fixed rates (3.5% - 30 year / 2.875%  - 15 year)
  • Renovation funding included in mortgage
  • Credit Score never considered in mortgage process

All buyers in Detroit will have access to loans worth up to 110% of the home’s loan-to-value ratio. For homes bought through the Detroit Land Bank's site, www.buildingdetroit.org, that loan-to-value ratio increases up to 150%.

How: Interested home buyers must attend a Homebuyer's Workshop and then undergo homebuyer counseling. More information can be at Building Detroit.

 

Loan Example for the Detroit Neighborhood Initiative:

 

Estimated Variables

30 year mortgage

15 year mortgage

Purchase Price through Building Detroit

$5,000

$5,000

Rehab Costs

$55,000

$55,000

Down Payment

$0

$0

Closing Costs

$0

$0

Total Mortgage

$60,000

$60,000

Assessed Value

$40,000

$40,000

Fixed Interest Rate

3.5%

2.75%

Principal and Interest Payment

$218

$414

Taxes

$112

$112

Insurance

$67

$67

ESTIMATED MORTGAGE PAYMENT

$397

$593
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