The City of Detroit is teaming up with the Neighborhood Assistance Corporation of America (NACA) and Bank of America to create the Detroit Neighborhood Initiative.
Through the program, potential homebuyers can apply for mortgages with rates between 2.75 and 3.5 percent, including funding for renovations.
Bruce Marks, founder and CEO of NACA, said the Detroit-exclusive program is “historic.” “Where else can you have a fully renovated house, paying less than $400 [per month]? It doesn’t happen.” Marks said. “Except it’s GOING to happen for many, many Detroit homeowners.”
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%.
To pre-qualify you can attend a workshop next Saturday, April 25 at Pure Word Missionary Baptist Church from 9:30 a.m. to 1 p.m. To register, go to the NACA website.