|
New
Mortgage
Program
to Give
More
Detroiters
Access
to Loans
•
NACA ,
Bank of
America
and
Opportunity
Resource
Fund
team up
with the
City of
Detroit
to
create
unprecedented
mortgage
program
to
strengthen
city
neighborhoods.
By
Forrest
Johnson
DETROIT,
MI -
Detroit
Mayor
Mike
Duggan,
along
with
representatives
of Bank
of
America
and
National
Assistance
Corporation
of
America
(NACA)
today
announced
a ground
breaking
mortgage
program
that
will
directly
address
one of
the key
limiting
factors
to
homeownership
in the
city of
Detroit:
the
inability
to
obtain a
mortgage.
People
interested
in
finding
out more
about
the
Detroit
Neighborhood
Initiative
and how
to
qualify
should
go to
www.NACA.com
or
contact
NACA at
(425)
602-6222.
In
addition,
all
interested
homebuyers
should
attend
the
Homebuyer’s
Workshop,
the
first
step in
becoming
a
homeowner.
The
next one
is as
follows:
When:
Saturday
April 25
Where:
Pure
Word
Missionary
Baptist
Church
20011
Grand
River
Avenue,
Detroit,
MI 48219
Time:
9:30 AM
- 1:00
PM
To
register:
Go to
www.naca.com/register
For more
information,
contact
NACA at
(425)
602-6222
Last
year,
only 10
percent
of the
approximately
4,000
completed
home
sales
were
financed.
The rest
were all
cash
purchases.
That’s
because
the
bank-recognized
value of
most
homes is
less
than 80%
of the
actual
sales
price.
This
means
that a
lot of
Detroiters
who rent
and have
the
ability
to pay a
mortgage,
as well
as
people
wanting
to
purchase
a home
and move
into the
city,
are
unable
to get
approved
for a
traditional
mortgage.
Duggan
said the
issue
came to
light
soon
after
launching
the
BuildingDetroit.org
auction
website.
Winning
bidders,
he
discovered,
often
were
unable
to
obtain
financing
due to
traditional
banking
industry
loan-to-value
guidelines.
After
months
of
research
and
planning,
the city
has
teamed
up with
The
Neighborhood
Assistance
Corporation
of
America
(NACA)
and Bank
of
America
to
create
the
“Detroit
Neighborhood
Initiative,”
a
program
for
qualified
homebuyers
in
Detroit.
The
program
combines
a zero
down,
low
interest
fixed
mortgage
with
rehabilitation
dollars
necessary
to
rebuild
Detroit’s
classic
houses
and
neighborhoods.
Most
importantly,
all
buyers
in
Detroit
will
have
access
to loans
worth up
to 110%
of the
home’s
loan-to-value
(LTV)
ratio.
For
homes
bought
through
the
Detroit
Land
Bank’s
site,
www.buildingdetroit.org,
that
loan-to-value
ratio
increases
up to
150%.
Bank of
America
will
provide
the
mortgages
up to
150% LTV
through
NACA and
Opportunity
Resource
Fund for
borrowers
who
complete
the NACA
pre-purchase
counseling.
This
will
allow
buyers
to
qualify
for
mortgages
in a
market
that has
been
hard hit
by the
decline
in
property
values
in the
wake of
the
recession.
“We know
the
desire
to
renovate
these
houses
and
rebuild
our
neighborhoods
are
there”
said
Mayor
Duggan.
“What we
haven’t
had is
enough
lenders
willing
to take
a chance
on our
city to
show
what’s
possible.
This
program
will
make
homeownership
in
Detroit
accessible
to many
more
people.”
The
Detroit
Neighborhood
Initiative
is a
collaborative
effort
of NACA,
Bank of
America
and
Opportunity
Resource
Fund.
Borrowers
that
complete
the NACA
pre-purchase
home
buyer
program
can
qualify
for a
mortgage,
which
includes:
• No
down
payment
• No
closing
costs
• Below
market
fixed
rates
•
Renovation
funding
included
in
mortgage
NACA CEO
and
founder
Bruce
Marks
says the
Detroit
program,
including
the up
to 150%
loan-to-value
ratio is
unprecedented.
“With
this
program,
we’re
recognizing
an
opportunity
to help
stabilize
neighborhoods
in
Detroit
by
offering
borrowers
a path
toward
homeownership.”
“While
this may
sound
too good
to be
true, it
is a
game
changer,
which
has
never
been
done in
the
history
of
mortgage
lending.
The
mayor of
Detroit,
Bank of
America,
and NACA
are
supporting
neighborhood
stabilization
in
Detroit,
to help
homeowners.
It shows
a path
forward
for how
hard hit
communities
can
truly be
revitalized.”
“Our
ties
with the
people
and
businesses
of this
community
are deep
and
longstanding,”
said
Matt
Elliott,
Michigan
Market
President,
Bank of
America.
“The
addition
of this
homeowner
program
gives us
another
tool to
help
play our
part in
Detroit’s
resurgence.”
That
sentiment
was
echoed
by
Christi
Coady
Narayanan,
CEO,
Opportunity
Resource
Fund.
“We’re
pleased
to work
with the
City,
NACA and
Bank of
America
to make
homeownership
a
reality
for even
more
Detroit
residents.
We’ve
always
believed
that
investing
in
Detroit
– for
the long
term –
is good
for the
community,
its
residents
and
businesses.”
About
Bank of
America
in
Michigan
Bank of
America
is
connected
to local
neighborhoods
and
communities
and we
are
invested
in
Michigan’s
economy.
From
philanthropic
and
sponsorship
support
to
volunteerism
and
investing,
last
year,
Bank of
America
directed
more
than
$3.5
million
to help
local
nonprofits
and
community
organizations
address
some of
Detroit’s
most
pressing
issues
and
greatest
opportunities.
Recently,
and in
partnership
with the
City,
Bank of
America
committed
$5
million
to the
0%
Interest
Home
Repair
Program
to
provide
Detroit
home
owners
with
zero
percent
interest
home
repair
loans.
This
solution
is one
way to
support
Detroiters
who have
been
here,
maintaining
property
and
sustain
neighborhoods.
By
supporting
investments
in
Detroit’s
neighborhoods,
this
tool
will
help
home
owners
to
increase
their
property
values –
ultimately,
re-building
community
and
pride in
homeownership.
Since
2008,
Bank of
America
has
provided
home
loan
modifications
to more
than
43,000
homeowners
in
Michigan
and
since
2011,
more
than 940
homes
were
donated
to area
nonprofits
with 100
homes
going
directly
to
Michigan
military
families.
Also in
2011,
Bank of
America
partnered
with the
city to
offer
its
first
responders
a
call-home,
and make
Detroit
their
residence
once
again.
With the
acquisition,
rehabilitation
and
donation
of 10
properties,
officers,
and
their
families
were
reunited
with
their
city as
residents
in great
neighborhoods.
Visit
the Bank
of
America
newsroom
for more
Bank of
America
news.
www.bankofamerica.com
ABOUT
NACA (www.naca.com)
The
Neighborhood
Assistance
Corporation
of
America
("NACA")
is a
non-profit,
community
advocacy
and
homeownership
organization.
NACA is
the
largest
non-profit
HUD
certified
counseling
agency.
NACA was
established
in
Boston
almost
30 years
ago and
now has
more
than two
million
members
nationwide.
NACA is
the
largest
and most
effective
organization
in
modifying
mortgages
and
provides
America’s
best
mortgage.
NACA has
set the
standard
of
providing
affordable
homeownership
making
homeownership
a
reality
for many
thousands
of
working
people,
enabling
even
those
with
credit
issues
to
purchase
a home
or
modify
their
predatory
loan on
far
better
terms
than
those
provided
even in
the
prime
market.
NACA has
been
highlighted
in the
national
news and
its CEO
Bruce
Marks
was
named
Bostonian
of the
Year for
2007
because
of
NACA’s
work in
getting
the
major
lenders
and
servicers
to
modify
home
loans
often
the same
day
through
the
extraordinary
NACA
American
Dream
Events
(over
150
events
nationwide).
See
Bostonian
of the
Year. He
has also
testified
in
congress
on
numerous
occasions
including
on
September
12,
2000,
being
one of
the only
people
to sound
the
alarm of
the
pending
mortgage
crisis.
ABOUT
OPPORTUNITY
RESOURCE
FUND
Opportunity
Resource
Fund is
a
nonprofit
501(c)(3)
CDFI
with
celebrating
30 years
of
working
for
social
and
economic
justice.
Supporting
Michigan’s
communities
via the
creation
of
decent
and
affordable
housing,
jobs and
great
commercial
spaces,
OppFund
is proud
to be a
catalyst
for
positive
change.
www.oppfund.org
Media
seeking
more
information
should
please
contact
John
Roach of
Detroit
Mayor
Mike
Duggan’s
office
at (313)
244-7857,
or Bruce
Marks,
CEO of
NACA at
(617)
835-4477
or
bmarks@NACA.com
Online:
Program
details:
http://www.naca.com |