Duggan to announce new home-mortgage plan
A new mortgage program is set to be unveiled that will lend potential Detroit homeowners up to $75,000 to fix up a home or cover the gap between the appraised value and sales price.
Getting a home mortgage in Detroit remains one of the city’s biggest challenges. The new program called the “Detroit Home Mortgage” will be announced Thursday by Mayor Mike Duggan along with the head of the influential Clinton Foundation and several bank presidents.
Most sales of homes in Detroit are paid in cash, while the number of buyers able to get mortgages have been fewer than 600 a year from at least 2012 to 2014, according to various data.
Many who want to buy homes in Detroit run into federal lending guidelines that don’t allow banks to loan borrowers enough money to cover necessary repairs of a home.
With the new Detroit Home Mortgage program, qualifying borrowers will get two mortgages — one for the appraised value of their house and a second for up to $75,000 to fill the gap between the appraised value and the sale price and/or the cost of renovations.
Details of how much funding will be available were not released Wednesday.
In the past two years, Duggan’s administration has launched several programs aimed at offering new ways to increase Detroit mortgages and the ability to include money to fix up homes.
Duggan will be joined Thursday by Clinton Foundation President Donna Shalala, Kresge Foundation President Rip Rapson and the presidents of First Merit Michigan, Flagstar, Huntington and Talmer banks.