Detroit to reveal finance plan for potential homeowners
Detroit — The city is scheduled Thursday to unveil a financing program aimed at helping residents become homeowners.
The announcement is expected to include Mayor Mike Duggan, District 1 City Council member James Tate, officials with the city's Land Bank Authority, Bank of America and Neighborhood Assistance Corporation of America, among others.
The "Detroit Neighborhood Initiative," created through a partnership between NACA and Bank of America, is a program for home buyers in Detroit that combines a zero down, low-interest fixed-rate mortgage, and other favorable terms with rehabilitation dollars to rebuild Detroit's homes and neighborhoods, NACA said in a Thursday news release.
Buyers that complete the NACA pre-purchase home buyer program can qualify for a mortgage which includes no down payment, closing costs or fees and is below fixed market rates, including 3.5 percent for a 30-year note and 2.875 percent for a 15-year note, officials said.
In addition, buyers in Detroit will have access to loans worth up to 110 percent of the home's loan-to-value ratio. For homes bought through the Detroit Land Bank Authority, that loan-to-value ratio increases to 150 percent, NACA CEO and founder Bruce Marks said.
"This ... has never been done in the history of mortgage lending," Marks said in a statement. It's "providing a national model of a true partnership that will significantly stabilize both neighborhoods and homeowners. It shows a path forward for how hard hit communities can truly be revitalized."
Duggan has vowed to make new ownership programs for residents a priority as part of his goal to strengthen neighborhoods.
Securing financing has been challenging in Detroit as the market struggles to rebound from the national foreclosure crisis. The predicament led to snags for some buyers in Duggan's home auction program, which launched in May.
By the end of last year, of the 394 properties auctioned, buyers had closed on only 138.
To combat the problem, the mayor previously noted agreements had been negotiated with local financial partners. He's also approached Gov. Rick Snyder and federal officials.
For information about the Detroit Neighborhood Initiative, go to www.NACA.com or call (425) 602-6222.
9:30 a.m. to 1 p.m. April 25 at Pure Word Missionary Baptist Church, 20011 Grand River Ave., Detroit
To register: www.naca.com/register