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Detroit Home Mortgage

For years, buying a home in Detroit has had one major roadblock—getting a mortgage large enough to fix up the home. Often the buyer qualified for a loan, but based on its appraisal value the home itself didn’t. Now, with Detroit Home Mortgage, participating banks can loan the full value of your home, including the cost of any renovations.

What is Detroit Home Mortgage?
Detroit Home Mortgage (DHM) is the only mortgage that lends you the amount needed to buy and fix up a home that needs renovation or to buy an already renovated home.

Who can apply for a Detroit Home Mortgage?
Applicants must be in good financial standing with a minimum FICO credit score of 640 (or 600 in some cases), and have adequate income and the down payment required to meet program underwriting. The home can be anywhere in the city of Detroit and must be the borrower’s primary residence.

Is Detroit Home Mortgage a government program?
No. Detroit Home Mortgage is a first-of-its-kind collaboration of local banks, foundations, MSHDA, and nonprofits seeking to address Detroit’s appraisal gap and ultimately rebuild Detroit’s neighborhoods.

How can I apply for a Detroit Home Mortgage?
A Detroit Home Mortgage can be secured from any program partner bank. All program partners will offer the same Detroit Home Mortgage rates. Learn more about DHM partner banks and how to apply at DetroitHomeMortgage.org

Further details are available at Detroit Home Mortgage partner banks (FirstMerit Bank, Flagstar Bank, Huntington, Liberty Bank and Chemical Bank and Trust).

All program partners will offer the same Detroit Home Mortgage rates. Learn more about DHM partner banks online and apply today!


Chemical Bank

Detroit!  Whether you’re planning to purchase a new home or freshen up your existing home, Chemical Bank and Trust offers personalized loan programs which may help you achieve your dream. 

Please call us today at 800.456.1500. Together we can explore the possibilities and find a solution that meets your home loan needs.

DETROIT HOME MORTGAGE HIGHLIGHTS*: 
This mortgage product is designed for the Detroit residential market. It features flexible credit and underwriting guidelines, allowing borrowers to purchase and or rehabilitate Detroit homes. 

First Lien Mortgages:

  • Financing up to 96.5%
  • Up to $271,050 loan amount for 1-unit

Up to $347,000 loan amount for 2-units 

Second Lien Mortgages:

1-2 Unit loans up to $75,000

FHA 203K (STREAMLINED OR FULL) HIGHLIGHTS*:
Purchase a home and turn it into a dream with the Streamline 203(k) loan.  This product offers the ability to buy a home, finance minor repairs and upgrades with a single mortgage loan.  

First Lien Mortgages :

  • Financing up to 96.5%
  • Up to $417,000 loan amount for 1-4 units
  • Renovation Costs up to $35,000 above the purchase price

Note: Value is based on the lesser of 110% of the appraised value after rehabilitation OR the appraised value of the home plus construction costs.

CONSTRUCTION LOAN HIGHLIGHTS*:
Chemical Bank’s Construction Loan products offers more flexibility for those bigger renovation projects, or improvements. Our team of knowledgeable professionals make the construction loan process as easy as possible for you. 

First Lien Mortgages :

  • Financing up to 90% of the after-rehabilitation value
  • Up to $417,000 loan amount for 1-4 units
  • Interest-Only payments during the construction period

Note: Value is based on the lesser of 110% of the appraised value after rehabilitation OR the appraised value of the home plus construction costs.

*All loans are subject to credit approval and program guidelines.  Member FDIC

View Program Summary


Liberty Bank and Trust Home Restoration and Acquisition Program

Overview
The Liberty Bank Home Restoration and Acquisition Program (HRAP) is a new, nontraditional mortgage loan that will allow a homebuyer to finance the acquisition and any required repairs or renovations to their home being purchased in the City of Detroit. This includes purchasers of homes from the Detroit Land Bank’s online auction. HRAP provides a 6-month interest-only construction line of credit during renovation or 9 months for properties located in a designated historic neighborhood.  Upon completion of the renovation, the construction line will transition to a permanent mortgage.  The mortgage loan is available to qualified borrowers purchasing in Hardest Hit Priority Neighborhoods. To qualify, borrowers must:

  • Have the income necessary to repay the loan
  • Successfully complete a housing counseling program
  • Occupy the home as their primary residence

Down Payment Assistance – No Income requirements:

  • Qualified borrowers may also be eligible up to $15,000
  • Detroit Public School employees may qualify for up to $20,000

Loan to Values:

  • Up to $110%

Communities:

Bagley
Boston Edison
North End
Jefferson Chalmers
Southwest Detroit
Grandmont Rosedale
University District
Marygrove
Morningside
East English Village
Cornerstone

Liberty Bank and Trust FAQs


First Merit Bank

 

 

 

 


NACA

Neighborhood Assistance Corporation of America: Detroit Neighborhood Initiative

 

The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and homeownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA helps those with credit issues, limited resources or discrimination concerns to purchase a home or modify their predatory loan to more affordable terms. To date, NACA has made the dream of home ownership a reality for hundreds of thousands of working people.

Prospective Detroit Home Buyers MUST complete the NACA pre-purchase home buyer program to qualify for the 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%.

See here for registration signup.

Interested home buyers MUST attend a Homebuyer’s Workshop and then undergo homebuyer counseling. More information can be found at: www.naca.com


Flagstar Bank

New Mortgage Program Aims to Boost Employee Residency in Detroit! New Mortgage Program at Flagstar Bank that will make loans - including renovation funds - available to city employees and anyone else eligible for the city employee 50% discount program with the Detroit Land Bank Auction.  

Flagstar Bank will offer those in the program mortgages of up to 95% the value of the house to fund renovations.

  • Detroit city employees, and others eligible for the 50% discount on DLBA auction properties will be eligible for 15-, 20-, or 30-year fixed-rate mortgages
  • Loans will be written for up to 95% of a home’s loan-to-value ratio
  • Renovation funding included in mortgage
  • 15-, 20-, or 30-year fixed-rate mortgages
  • Maximum loans of $417,000
  • Available for 1- and 2-unit properties

Learn More


Citizens Bank

Citizens Bank offers two unsecured home improvement loans up $10,000 each: The EZ Home Improvement Loan and the Energy Efficiency Loan.

Property appraisal is not required. Property for which the home improvement loans are intended must serve as the applicant homeowner’s primary residence.

Applicant homeowner must live in a low or moderate income census tract or have income that is less than 80% of the area median income in the specific geography.

Each loan offers a low monthly payment, no fees or closing costs, flexible income requirements and a 90-day payment deferral option.

Up to 50% of an approved loan can be used for debt consolidation.

To apply, visit any local Citizens Bank branch or, call 1-800-340-5626. Branches near the Detroit Land Bank Authority are located at 7401 Woodward Ave Detroit, MI 48202 (Tel: 313-871-7211) and 777 Woodard Ave Detroit, MI 48226 (Tel: 313-965-5808).

All loans are subject to credit approval. Member FDIC

Learn More about the Energy Efficiency Loan

Learn More about the EZ Home Improvement Loan

Detroit Land Bank Authority
500 Griswold Street, Suite 1200, Detroit, MI 48226

313-974-6869
communityrelations@detroitlandbank.org
EQUAL HOUSING OPPORTUNITY
The Detroit Land Bank is an Equal Housing Opportunity Provider and does not discriminate in the sale, rental, and financing of housing, or in other housing-related transactions, based on race, color, national origin, religion, sex, familial status, age, height, weight, or disability.
Copyright © 2014 Detroit Land Bank Authority