In order to help more Detroit homebuyers in purchasing homes, Comerica Bank announced last week its plan to invest up to $5 million in a local home mortgage program.
Detroit Home Mortgage – a collaboration program between local banks and non-profits aimed at helping the city’s appraisal gap problem – will be the recipient of the bank’s investment.
Established last year and managed by Community Reinvestment Fund, USA, the program lets borrowers apply for a mortgage with one of its partner banks. Once approved, the loan will be split into two mortgages with low rates – one for 96.5% of the appraised value, the other with up to $75,000 more than a home’s current appraised value.
2006 to 2010 were devastating to Detroit’s housing market, as the housing and credit crisis reduced home values and home sales in the city. Homes across Detroit still need to recover from the housing slump. Detroit Home Mortgage allows qualified buyers to borrow based on a home’s true value instead of its current appraised value.
"It's been inspiring to watch the transformation of downtown Detroit over the past several years," said Michael T. Ritchie, president of Comerica Bank-Michigan. "Detroit Home Mortgage is helping to push that revitalization out into the neighborhoods, and we're proud to support that effort through our investment in Detroit Home Mortgage."
Huntington National Bank, Chemical Bank, Flagstar Bank, Independent Bank and Liberty Bank are the program’s partner banks.
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