New Program Gives Some Detroiters $25K For Down Payment To Buy A Home

DETROIT — A new program introduced by city officials Thursday can help low-income Detroit residents become homeowners.

The Detroit Downpayment Assistance Program will give some Detroiters up to $25,000 to make a down payment. The program is funded by $6 million from the American Rescue Plan Act, officials said.

Officials encourage all lower-income earners who may be able to afford a monthly mortgage payment but don’t have enough savings for a down payment to apply for the program.

In order to qualify for the program, residents must have lived in Detroit for the past 12 months, must not have owned a home in the last three years and make under a certain income threshold. For a single person to qualify, for example, they would have to earn less than $41,000 per year.

Funding can also can be used for other home purchase-related expenses, including prepaids (such as escrow deposits for property taxes), interest rate buy-downs, closing costs and reduction in principle.

Officials believe the program is expected to help between 240 and 400 lower-income and middle-class homebuyers in the next two years, depending on the amount each family needs in down payment assistance.

"It is vitally important that as property values continue to climb, people of varying incomes are able to buy a home," Councilmember Johnson said. "Having to move because your landlord has increased your rent means not only having to find a new place to live, but also uprooting your child from their school, leaving friends and relationships you have developed, and possibly leaving the community you love and call home."

Detroit Mayor Mike Duggan called the program a game changer for Detroiters looking to buy a home.

"You pick out your house, you go to your lender, your lender is gonna work really hard to get you to be one of the first 400 in the door," Duggan said. "I would say you couldn’t have a better time to try to convert and I have no doubt if we get 400 homeowners for $6 million, there’s gonna be a lot of support from us to find more money and do it again."

You can learn more about the program here or by visiting detroitdpa.org.