NACA founder and CEO Bruce Marks received recognition on behalf of NACA from the Promontory Financial Group after being nominated for their 2015 Empowerment Award for creating the unprecedented Detroit Neighborhood Initiative.
In their statement, PFG noted, “NACA’s Detroit Neighborhood Initiative expands residential mortgage lending in Detroit and assists homeowners with extensive rehabilitation work required on their properties.”
The Detroit Neighborhood Initiative is a unique mortgage lending program conducted in cooperation of the City of Detroit, the Detroit Land Bank and Bank of America. Designed to help rehabilitate and repopulate residential areas blighted as a result of the city’s economic hardships, the Detroit Neighborhood Initiative allows potential homeowners the opportunity to buy and rehabilitate homes throughout the city which have previously sat empty as a result of foreclosure, abandonment or other issues.
“If you’re determined to become a homeowner, we will make sure that happens. This product is that good, this partnership with Bank of America is that good, and this relationship with the City of Detroit is that good”, according to Mr. Marks.
The Detroit Neighborhood Initiative has created a homeownership package that is unprecedented in American history. NACA’s groundbreaking program includes:
- No down payment, No closing costs, No fees
- Below market fixed rates (3.5% – 30 year / 2.875% – 15 year as of 4/23/15)
- Everyone receives the same terms
- An aggressive Interest Rate Buy-down Program that can reduce the interest rate 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, instead the Homebuyers individual payment history is utilized
- Underwriting done by NACA
- Homes purchased through the Land Bank using this program are eligible for loan to value ratios of up to 150%.
Detroit Mayor Mike Duggan hailed the Detroit Neighborhood Initiative by saying “Now, we’re finally going to open up mortgages to a much larger pool of Homeowners in the city.”
The Detroit Free Press in an extraordinary editorial titled “Mortgage Program is Key to Detroit’s Future” stated the significance of this program. The editorial states “Duggan has been working for months to come up with a solution, and the program with Bank of America and NACA is the product of a good deal of ingenuity and creativity. The mayor had no choice, though. Nearly everything he hopes to do in Detroit hinges on the ability of average people being able to buy and finance houses in neighborhoods all over the city according to traditional lending terms.” That is reinforced with the fact that there were only 400 mortgages all of 2014 in Detroit. More than 20,000 people have signed up to take advantage of the Detroit Neighborhood Initiative so far.
In receiving the recognition, Mr. Marks said, “This has never been done in the history of mortgage lending” and expressed his gratitude not just for the award but for the opportunity to help rebuild one of America’s great cities.