Historic Lending Announcement in Detroit

 

*****MEDIA ADVISORY*****
FOR IMMEDIATE RELEASE
Press Release – April 16, 2015

CONTACT:

Tim Trumble, Media Coordinator – Cell: 704-617-947-2632; ttrumble@naca.com

 

NEW MORTGAGE PROGRAM DESIGNED TO STABILIZE DETROIT NEIGHBORHOODS – FIRST SUCH PROGRAM IN THE HISTORY OF MORTGAGE LENDING

 

NACA and Bank of America have partnered with the City of Detroit to create unprecedented mortgage program.

 

Today April 16th at 2:15 p.m. in Detroit Mayor Mike Duggan’s City Hall office, he will announce a new mortgage program that will directly address many of the problems facing those trying to be homeowners in the city of Detroit.   The Neighborhood Assistance Corporation of America (NACA), along with Bank of America, have created the “Detroit Neighborhood Initiative,” a program for homebuyers in Detroit that combines a zero down, low interest fixed rate mortgage, and other very favorable terms with rehabilitation dollars necessary to rebuild Detroit’s classic houses and neighborhoods.

 

The Detroit Neighborhood Initiative is a cooperative effort of NACA and Bank of America.  Buyers that complete the NACA pre-purchase home buyer program can qualify for a remarkable mortgage, which includes:

  • No down payment
  • No closing costs
  • No fees
  • Below market fixed rates (3.5% – 30 year / 2.875%  – 15 year)
  • Interest Rate Buy-down:
    • 30 year – One percent of mortgage permanently reduces rate by .25% to virtually zero
    • 15 year – One percent of mortgage permanently reduces rate by .50% to virtually zero
  • Available on all property types: new, existing, single to four family, condo
  • RENOVATION FUNDING INCLUDED IN MORTGAGE
  • Credit Score never considered in mortgage process
  • Homebuyers individual payment history utilized
  • Underwriting done by NACA

 

Most importantly, 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 the loan-to-value ratio increases up to 150%.  

 

The NACA program is already established as the best mortgage in America, and is available in 40 other markets.  But NACA CEO and founder Bruce Marks says the Detroit program, and it’s up to 150% loan-to-value ratio is unprecedented.   “This is a game changer, which has never been done in the history of mortgage lending,” say’s Bruce Marks.  “The mayor of Detroit, Bank of America, and NACA are not only redefining neighborhood stabilization for Detroit, but are providing a national model of a true partnership that will significantly stabilize both neighborhoods and homeowners.  It shows a path forward for how hard hit communities can truly be revitalized.”

 

People interested in finding out more about the Detroit Neighborhood Initiative should go to www.NACA.com or contact NACA at 425-602-6222.  In addition, all interested homebuyers should attend the Homebuyer’s Workshop which is the first step in becoming a homeowner on these incredible terms.  The next one is as follows:

 

When: Saturday April 25

Where: Pure Word Missionary Baptist Church

              20011 Grand River Avenue, Detroit, MI 48219

Time: 9:30 AM – 1:00 PM

To register: Go to www.naca.com /register 

For more information: Contact NACA at (425) 602-6222

 

Loan Example for the Detroit Stabilization Program:

The below example of a likely loan through this program demonstrates the incredible terms and impact.  A homebuyer would have a renovated home with a fixed 30 year mortgage payment of $397 or for a 15 year payment of $593.  It is significantly less than what the homeowner would be paying in rent.  This would not be possible with any other mortgage since such terms are not available and because the depressed values in Detroit would likely value this property at $40,000 thus requiring 150% LTV to qualify.

 

                                                                                         30 Year            15 Year

Purchase Price (through Detroit Land Bank)             $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

Interest Rate (fixed)                                                        3.5%                      2.75%

Principal & Interest Payment:                                      $218                      $414

Taxes:                                                                                 $112                      $112

Insurance:                                                                         $67                        $67

Mortgage Payment:                                                $397                   $593

 

About NACA (www.naca.com):
NACA, Neighborhood Assistance Corporation of America, founded in 1988, is a non-profit, community advocacy and homeownership organization.  NACA is the largest HUD certified counseling agency with more than two million members and is recognized as the most effective organization in modifying mortgages and in providing the best mortgage in America. NACA has been highlighted in the national news and its CEO Bruce Marks was named Bostonian of the Year for 2007 because of NACA’s work in getting the major lenders and servicers to modify home loans often the same day through NACA’s American Dream Events (over 150 events nationwide). See Bostonian of the Year. He has also testified in congress on numerous occasions including on September 12, 2000, being one of the only people to sound the alarm of the pending mortgage crisis. Mr. Marks has remained the country’s foremost advocate for affordable home ownership, and was recently profiled in The New York Times as “The Homebuyer’s Champion

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