Apply Now for Detroit Down Payment Assistance

The City of Detroit has committed over $9 million in Community Development Block Grant (CDBG) and Community Development Block Grant Disaster Recovery (CDBG-DR) to increase homeownership in the City of Detroit. The Detroit Down Payment Assistance Program provides qualifying families grants up to $25,000 for downpayment, prepaids including interest rate buy down, closing costs, and principal reduction. The total amount of assistance cannot exceed 50% of the purchase price, downpayment, prepaids Including interest rate, buy down, and closing costs. The awards are available to homebuyers who have not held marketable interest in property for the last 3 years. All grant recipients must have household incomes at or below 80% of AMI (Area Median Income) published annually by HUD (Housing and Urban Development) for the City of Detroit. THE PURCHASED HOME MUST BE THE PRINCIPAL RESIDENCE FOR THREE (3) YEARS AFTER GRANT AWARD OR THE GRANT MUST BE REPAID ON A PRORATED BASIS BASED OFF OF THE ORIGINAL OCCUPANCY DATE.

• You must be a homebuyer who has not held marketable interest in a property in the last 3 years.
• You must prove that you resided in the city of Detroit for the last 12 months OR you must prove that you lost a home due to property tax foreclosure within the City of Detroit between the period of 2010-2016.
• Your total household income may not exceed 80% area median income for your adjustable household size issued annually by the Housing and Urban Development Department. See the table below for income limits.

• You must complete the required HUD-approved education course.
• You must purchase a 1-2 unit property in the City of Detroit as your primary residence and plan for it to remain as your primary residence for the next 3 years.
• You must contribute a minimum of $1,000 towards the purchase of the property.
• The housing expense ratio must not exceed 30%.
• The program offers up to $25,000 to be used for down payment, prepaids including interest rate buy down, closing costs, and principal reduction in conjunction with a purchase mortgage or a renovation mortgage. The total amount of assistance cannot exceed 50% of the purchase price, down payment, prepaids including interest rate buy down, closing costs.
• There will be prioritization for residents who can provide evidence that they were impacted by the August 2023 flooding.
• All household income must be declared and will be counted toward the income limit for your family size.
• NO FILE(S) WILL BE SUBMITTED TO CITY OF DETROIT FOR PAYMENT UNTIL ALL DOCUMENTATION HAS BEEN RECEIVED AND VERIFIED FOR ACCURACY, COMPLETION AND ELIGIBILITY.
• AN OFFICIAL LETTER OF APPROVAL RESERVING THE ASSISTANCE FUNDS IS ISSUED BY THE CITY OF DETROIT ONCE THE FILE IS DETERMINED SATISFACTORY FOR ALL ELIGIBILITY TERMS AND GUIDELINES BY THE CITY OF DETROIT.

• If you are unsure how to complete the online application, please call or visit the National Faith Homebuyers (NFH) office so a NFH representative can help you complete your application.

  5460 W Fort Street

  Detroit, MI 48209

  Office: (313) 255-9500 | Fax: (313) 255-9555

DOWN PAYMENT ASSISTANCE APPLICANT CHECKLIST

In order for National Faith Homebuyers to process your application, the following documents will be required when you complete the Neighborly application.

CUSTOMER

To be in line for Down Payment Assistance you must submit items 1, 2 & 3 below:

1. Lender Pre-Approval Letter* (Required)
2. Accepted Purchase Agreement* (Required)
3. Completion of HUD or MSDHA-approved homebuyer education* (Required)
4. Most recent 30 Days income for ALL household members over the age of 18
5. Two years of tax returns & W-2’s for ALL household members over the age of 18
6. Most recent 3 months of asset verifications (bank statements)
7. Application for homebuyer assistance (Note: Anyone 18+ must sign page 2)
8. Copy of driver’s license or state-issued identification: front and back for anyone 18+
9. One of the following requirements must be met:
   • Copy of social security card for all household members
   • Permanent residents must provide included evidence of lawful permanent residence for all household members
   • Non-permanent residents must provide a valid SSN, except for those employed by the World Bank, a foreign embassy, or equivalent employer
   • Employment Authorization Document (USCIS Form I-766) showing that work authorization status is current
   • A USCIS Form I-94 evidencing H-1B status, and evidence of employment by the authorized H-1B employer for a minimum of one year
   • Evidence of being granted refugee or asylee status by the USCIS
   • Evidence of citizenship of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau
10. Birth certificates for household members under the age of 18
11. Signed freedom to choose form
12. Proof that you have not held an interest in property in the last 3 years
13. Proof that you are a city of Detroit resident AND that you resided in the city of Detroit for the last 12 months OR that you lost a home due to property tax foreclosure within the city of Detroit during the period of 2010-2016
14. Signed Detroit Residency Attestation form
15. Signed Household No-Income Persons Attestation form
16. Signed Homebuyer Interest Certification form
17. Signed City of Detroit Employee Disclosure form (if applicable)

LENDER

1. Flood Determination
2. Appraisal (1004)
3. First Mortgage Application (1003)
4. Title Insurance
5. Loan Estimate

REALTOR

1. Signed Purchase Agreement
2. Copy of Earnest Money Deposit (EMD)

When all documents have been received by National Faith Homebuyers; confirmed for completion, accuracy, and eligibility; the materials will be submitted to the City of Detroit for final approval and reservation of funds. The City of Detroit requires 5 business days prior to the scheduled closing in order to issue DPA approval in a timely fashion. These documents may be shared electronically with previous authorization from National Faith Homebuyers.

If you should have any questions or concerns, please do not hesitate to contact National Faith Homebuyers at (313) 255-9500 or www.nationalfaith.org.

Thank You,

National Faith Homebuyers