The city of Detroit is slowly recovering from the devastating affects of the economic collapse of a few years ago. Efforts to rebuild the city and make the neighborhoods safer, involve a few banks tha have teamed together to help make home ownership easier when purchasing within Detroit city limits. The program will fast track community vitalization in various ways.
Loans given through the Detroit Home Mortgage program have a set interest rate which is lower than national and local rates for home loans. The banks have amended the traditional home buying process affected by the appraised value of the home. In this instance the banks will lend money to a qualified buyer to purchase a home which has not appraised for the asking price of the seller. The home itself must be recently updated and in no need of any repairs. The program is also offering combination loans which allow home buyers to purchase and rehab/remodel the house of their choice and make it the home of their dreams. In any case you must have a minimum credit score of 600 and must meet the income requirements for the loan amount.
Land values in Detroit are still amongst the lowest in the nation. Due to these values it has become common for outside investors to invest in Detroit real-estate and make substantial profits. Downtown Detroit have seen land values soar only to benefit many of those outside investors. Demographically Detroit's Black citizens make up about 84% of the population. This program offers its black citizens a chance to avoid the gentrification process and reestablish pride in a city that was once a model for black neighborhoods.
If you live in Detroit and are renting, this is a great opportunity and first step to gain financial independence. With the increase in home ownership the communities will begin to rebuild. With fewer vacant homes and the pride of home ownership crime rates will fall drastically and home values will rise significantly. The surrounding businesses that were just holding on will be given a breath of life with the influx of new home owners. Overall it will be a positive affect on home owners, properties, businesses, and the city itself.
For more information about the program and participating banks click here