Lending Guidelines
Our maximum loan to value is 50% of the after repair value, which is determined through a full appraisal
providing the as-is value, the cost to repair and the expected value after repair. The loan amount can
cover the purchase price and the rehab costs but the borrower must pay 10% of the loan amount towards
closing costs.
Property must be located in Wayne, Oakland or Macomb County and non-owner occupied (investment) 1 to 4
family residence. Property must have a minimum of 3 bedrooms and should have a brick exterior with a
basement and garage. Also, the condition of the neighborhood is sometimes more important than the property
itself (we can lend to fix the house but we can't lend to fix the neighborhood).
Proof of Income is required, acceptable documentation includes bank statements, pay stubs, W-2's, 1099's
or tax returns.
Building From Strength
the Detroit Works Project is an ambitious initiative that would redirect city services — and residents — to more viable neighborhoods.
It is a process to create a collective vision for Detroit’s future at the neighborhood, city and metropolitan scale. This process is meant to serve as a roadmap toward a common goal of stronger neighborhoods, safer streets, access to job opportunities, and improved services and quality of life in Detroit.
The good news is that there’s plenty to work with. Detroit is the city that put the world on wheels. A city with rich cultural heritage, ethnic tradition and a legacy of innovation. The middle class was born here. We built the Arsenal of Democracy and the first expressway to help expand it. It’s a city where bold ideas have become very real and set the example for the world.
Here are some other things that we have going for us:
- 20% of the world’s fresh water
- The world’s busiest international border crossing
- Close proximity to major universities, colleges and community colleges
- An emerging Downtown, with entertainment options including three major sports teams, casinos and a riverwalk
- Rich culture and performance art, including the 2nd largest theatre district to New York
- Proximity to a large number of hospitals, including some of the country’s best in their specialty
- 50 million annual visitors and tourists to the city
Detroit offers Incentive for Police Officers to live in the City
It is named "Project 14" and is designed to encourage Public Safety Officers to live in the city by making homes in the Boston Edison and English Village neighborhoods available for purchase and, using Federal Neighborhood Stabilization Program funds, renovate them at no cost to the city of Detroit.
Officers interested in the program would pay $1,000 for a home and could to tap into $150,000 in federal monies for renovation. While most of the homes are in foreclosure, officials said they are in relatively good condition. The city is using $41 million from its Federal Neighborhood Stabilization Program funds to launch the Project 14 initiative.
The best part of the program is that it isn't limited to just police and firefighters. In fact, any qualifying individual may apply to become a homeowner through the Federal Neighborhood Stabilization Program. Qualified homebuyers must have an income of no more than 120% Area Median Income; maintain good credit; provide $1,000 cash down-payment; and must live in the home
Click here to check it out!
Opportunities Abound in Detroit Real Estate
Renters win living in a home fixed by an honest landlord
Even the sale of U.S. Housing and Urban Development homes has been impacted by the poor housing climate in Detroit. Through the first month of 2009, average sales were $6,035.
Not all of Detroit's real estate market has bottomed out.
A seven-bedroom, 11,580 square-foot Tudor in Detroit's historic Indian Village neighborhood lists for $849,900, and a $765,000 penthouse condo in the Albert Kahn Building is for sale.
Detroit's northwest side
Neighborhoods with Opportunities
The once-stable neighborhood of well-tended brick homes on Detroit's northwest side has some with brick paver driveways and front walks, trimmed bushes and new windows. But foreclosures are creating an investors' dream. These are not the infamous $1 homes, but well-built structures falling on hard times that are available for under $10,000.