Buy In Detroit For Next To Nothing

By mousa

The affordable homes that have been popping up in the Detroit auctions are nothing new to our followers with Own It Detroit, but new legislation passed by Mayor Mike Duggan has created even more potential for many of the abandoned homes across the city.

Many of those who were purchasing homes in Detroit paid with cash. Very few were eligible for a mortgage, and this hurt production and turnover in some areas across the city. Additionally, many of these homes required so much attention and care that the cost to fix them outweighed the overall value.

Duggan explained that he knows people are ready to get back into Detroit and help the city rebuild from the ground up. However, the problem lies with lenders not willing to give Detroit a second chance to bounce back. This is where the Detroit Neighborhood Initiative and Bank of America come into play.

Along with additional support from non-profits, these two companies found a way to provide real loans to potential homeowners, in order to bring forward more mortgages. These new mortgages will write up to 150% of the Detroit home’s value. To reach this amount of value, Detroit has also partnered up with the Opportunity Resource Fund, to give potential homeowners more value than even Bank of America can provide.

Mortgages in Detroit through the Detroit Neighborhood Initiative also include the following perks:

  • No money down
  • No closing costs
  • No extra or hidden fees
  • No income limits
  • No credit score consideration
  • Interest rates close to 0%
  • Can receive up to $200,000 in loans

Being compared to the process of VA loans, Duggan and the Detroit Neighborhood Initiative believe that this process will allow more people to purchase the homes being placed up for auction, and throughout the neighborhoods.

Duggan also explained that rather than renting in Detroit, where numbers can be very high, he is encouraging people to purchase, renovate, and live inside already existing Detroit homes, for a fraction of the cost. Duggan doesn’t believe that going forward with these loans provides any risk for Detroit, but rather has put faith into these new mortgages lending loans, due to their basis of affordability.

To find out more information on the Detroit Neighborhood Initiative, or see if you can qualify for one of these new mortgage based loans, visit the NACA website.

Next Post

    Latest Posts

    Young couple dreaming of their new home grinning as they hold up a builders ruler shaped as the frame of a house

    How To Keep Your Homes Filled With Tenants

    Read Full Post
    Businessman handing someone a key with city overlay

    What Does Turnkey Property Management Do?

    Read Full Post
    A man conducting research on a laptop and holding documents

    Detroit Property Manager Tips: The Power of Location

    Read Full Post
    Businessman hand holding real estate value scheme. Property value

    The Beginners Guide To Investing in Rental Properties

    Read Full Post

    Subscribe To
    Receive The Latest News

    Similar Posts

    By mousa  |  Oct 31 2014

    DIA Artwork Under Attack By Judge Rhodes

    Just when the Detroit Institute of Arts and Detroit’s Emergency Manager, Kevin Orr, thought their is...

    By mousa  |  May 27 2015

    What Properties Should Be In Your Real Estate Portfolio?

    When it comes to adding and acquiring properties to your collection of real estate in Detroit, how d...

    By mousa  |  Jul 3 2019

    What Are the Responsibilities of a Property Manager?

    When hiring a property management company, what are some of your expectations? To make sure that the...