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Program Aims To Make Home Financing More Accessible In Detroit

DETROIT (WWJ/AP) - "Groundbreaking." "A game changer."

Those are just a couple of the phrases being used to describe a new home-buyer program announced Thursday in Detroit.

The newly created program is expected to help revive Detroit neighborhoods by making mortgages easier to get for people looking to buy homes in the city.

Mayor Mike Duggan announced the Detroit Neighborhood Initiative and tells WWJ's Stephanie Davis that this is significant for people buying homes through the Land Bank because buyers will have access to loans up to 150 percent of a home to value ratio.

"These neighhorhoods are coming back quickly and we're dealing with all the abandoned houses at once and now for the first time we are going to be able to solve the appraisal process."

Created by the Neighborhood Assistance Corporation of America and Bank of America, the program combines a zero down, low-interest fixed rate mortgage. It's available on new, existing, and single to four-family homes and condominiums.

Renovation funds are included in the mortgages.

"What we want you to do, if you want to buy a house on the Land Bank and you want to use an NACA loan - go in - get prequalified so you know ahead of time how much you are qualified to bid on ... and now we are finally going to open up mortgages to a much larger pool of homeowners in Detroit," said Duggan.

The effort to restore home-ownership to more Detroiters has not always been a smooth process.

City Says 12 Detroit Homes Demolished On Accident

In 2013, Kristine Diven and Micho McAdow planned to fix up the empty two-story home and move in by the spring. But when they drove by one evening in December, their new house was gone.

After it was discovered that Diven and McAdow's home had been wrecked, Henderson gave Diven a list of empty, city-owned properties with an offer that she could take one, and Weiss said the Wayne County treasurer's office refunded the $500 paid for the house.

Occupied Detroit Land Bank Homes Pose Challenge

Homes bought through the city's Land Bank Authority will have a loan-to-value ratio of up to 150 percent.

Neighborhood Assistance Corporation of America Chief Executive and founder Bruce Marks says the program "shows a path forward for how hard hit communities can truly be revitalized."

Find program details [HERE].

 

TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

 

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