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%.
When: Registration begins April 16, 2015. The first homebuyer workshop will be he held on April 25, 2015 at Pure Word Missionary Baptist Church 20011 Grand River Avenue, Detroit, MI 48219 from 9:30-1:00pm
How: Interested home buyers must attend a Homebuyer's Workshop and then undergo homebuyer counseling. More information can be found at: www.naca.com or https://buildingdetroit.org/financing/.
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 |