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 |