Purchasing a home from the DLBA is not a guarantee that financial assistance will be awarded through any of the lenders listed below. The list of lenders is intended to assist buyers with possible financing resources and buyers are not mandated to apply for financial assistance with any of the lenders. Each lender has its own lending criteria, and decisions on funding are solely within its discretion. We encourage you to research any other financing options available.
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!
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.
As of 12/1/2020 the Detroit Home Mortgage program no longer offers renovation loans.
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 :
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 :
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
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:
Down Payment Assistance – No Income requirements:
Loan to Values:
Communities:
Bagley
Boston Edison
North End
Jefferson Chalmers
Southwest Detroit
Grandmont Rosedale
University District
Marygrove
Morningside
East English Village
Cornerstone
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:
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%.
Interested home buyers MUST attend a Homebuyer’s Workshop and then undergo homebuyer counseling. More information can be found at: www.naca.com
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.
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
