Mayor Mike Duggan has announced a new mortgage program that will make loans, including renovation funds, available to City of Detroit employees.
The program will be through Flagstar Bank, and city employees must purchase a home in Detroit through the Detroit Land Bank auction. The good news is that homes should be more affordable than ever.
In March, Duggan announced a 50 percent discount on Land Bank homes for city workers, retirees, and their immediate family members. The incentive seems to be working.
44 homes, about 22 percent of the total, have been sold to qualifying bidders as part of the employee discount program.
What is the Detroit Land Bank? It is a public authority dedicated to returning Detroit’s vacant, abandoned, and foreclosed property to use. Basically, get formerly unused property in the hands of people who will make it better. Beyond the auction, they have a side lot program, do community partnerships and also demolition.
Last month, the Land Bank started auctioning three houses per day at BuildingDetroit.org. Check it out and get registered to become a bidder. Maybe you’ll find your perfect home there.
According to Mayor Duggan, the new Flagstar mortgage program shows that another major lending institution is demonstrating its confidence in the Detroit housing market.
“Every day, we are seeing increasing interested among people who want to live in Detroit, especially city employees,” Duggan said. “This great new program from Flagstar, along with our 50% Land Bank discount for city workers and improving city services, is helping Detroit to bring back home many of its workers.”
Here are some of the details around Flagstar’s mortgage program for city employees:
- Loans will be written for up to 300 percent of a home’s loan to value ratio
- Renovation funding is included in the mortgage
- City employees are eligible for a 50 percent discount on final bid on Detroit Land Bank Auctions
- The mortgage is 15 year fixed rate
The program has already encourage hundreds of city employees to register to become bidders on the auction website BuildingDetroit.org. It’s a great opportunity to find a good home in a city that’s doing something new every day, and maybe it’ll make a dent in the exodus of employees who work for the city of Detroit but no longer reside there.
“Whether they are staying in the city, coming back to Detroit, or moving in for the first time, employees are interested in making Detroit their home,” said Mayor Duggan. “We can’t force employees to live here. We shouldn’t want to. What we can do, and are doing, is making Detroit the place that they want to live. We are always looking for new ways to make that easier.”