Detroiters have another chance to become homeowners through a popular program that’s taking applications again.
The city of Detroit is re-opening its Down Payment Assistance program − providing up to $25,000 for eligible residents looking to purchase a home − for a third time, and will prioritize those affected by the floods of August 2023.
The program, which originally started in 2023 with federal pandemic dollars and even piqued the interest of former Vice President Kamala Harris while she was running for president, has assisted 794 households to buy homes through its first couple rounds. This time, another 450 applicants have the chance to become homeowners through the $9 million federally funded initiative Mayor Mary Sheffield said she knew she had to continue when she was elected.
“Homeownership remains one of the most powerful ways to build generational wealth − wealth that can be passed down from parents to children, and help create stability for our families,” Sheffield said at a news conference on Wednesday, March 11, at the Crowell Recreation Center. “Yet for many Detroiters, the biggest barrier to purchasing a home is not necessarily a monthly mortgage − because oftentimes, that’s just as much as our rents − but it really is … the need for down payment assistance.”
Here’s what prospective homebuyers should know:
What is the Down Payment Assistance program?
The Down Payment Assistance program can provide up to $25,000 in down payment assistance to households that qualify. It is funded with money from the U.S. Department of Housing and Urban Development − $1.7 million from HUD’s Community Development Block Grant and $8.77 million from HUD’s Community Development Block Grant-Disaster Recovery funds.
Previous rounds of the program were paid for with money from the pandemic-related American Rescue Plan Act (ARPA) dollars, and contributions from banks, philanthropic groups and Wayne County.
The program is administered by National Faith Homebuyers, a nonprofit helping people buy homes.
Who qualifies?
Applications will be reviewed on a first-come, first-served basis. Applicants must meet the following requirements for the third round:
Residents affected by flooding in 2023, and who meet the other requirements above, will be prioritized. Those applicants must submit a Detroit Water and Sewage Department (DWSD) or Federal Emergency Management Agency (FEMA) claim.
What can the money be used for?
Eligible households can use the grant of up to $25,000 for down payment assistance, buying down interest rates, closing costs and principal reduction, according to the city of Detroit’s website.
How to apply:
For more detailed information − including Frequently Asked Questions − and to apply, go to detroitmi.gov/DPA. Interested applicants can also call the Detroit Housing Resource HelpLine at 866-313-2520.
Reach reporter Nushrat Rahman at nrahman@freepress.com.
This article originally appeared on Detroit Free Press: Detroit’s $25K down payment assistance program re-opens: How to apply
Reporting by Nushrat Rahman, Detroit Free Press / Detroit Free Press
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