Detroit homeowners who want to make repairs, such as fixing a roof or getting new windows, may be able to qualify in select neighborhoods for a 0% loan under $1.5 million in new funding announced Thursday by the Bank of America.
In addition, Bank of America will provide a $1 million operating grant to Invest Detroit to support its expansion of the Strategic Neighborhood Fund and Affordable Housing Leverage Fund.
The 0% program is citywide but some higher-income areas will not qualify, as the program is targeting those with the greatest need. As a result, Detroit homeowners will need to look at a very detailed list of requirements to see if a 0% loan may be an option.
To qualify, requirements include:
- You must own and have lived in your home for at least six months.
- Vacant, unoccupied units are not eligible.
- Single-family and multifamily units are eligible as long as the person applying for the loan is also the owner listed on the title.
- Low to moderate income Detroit homeowners may qualify no matter where they live in the city. Check to see if you qualify based on income.
- Based on income limits, the loans would be restricted to a one-person household making $42,750 as of April 2019 or up to $80,600 for a household of eight people or more.
- If you don’t qualify based on income, check the map online to see if you live in an eligible HUD-designated target area where there are no income restrictions.
- See www.detroithomeloans.org for information and details on the 0% program where “you pay back only what you borrow.”
- Repairs that might qualify include kitchen and bathroom remodeling; electrical repairs; furnace replacement; roof replacement; repairs to existing attached or unattached garages and existing driveways; plumbing, and repairs involving porches and structural support.
- The minimum FICO credit score for this program is 560, which is below the average credit score of most U.S. consumers.
The 0% Interest Home Repair Program is administered by Local Initiatives Support Corporation and has helped more than 500 families since its launch in 2015.
The program offers 10-year, interest-free loans from $5,000 to $25,000 to help Detroit homeowners invest in their homes. Homeowners pay back only what they borrow beginning 75 days after closing the loan.
Bank of America also has a Down Payment Grant Program, which is being offered in select areas to eligible buyers. The grant provides 3% of the home purchase price — up to $10,000 — to be used as a down payment with no repayment necessary. See bankofamerica.com/firsthome.
Bank of America noted that the new commitment of $2.5 million is in addition to the bank’s investment of $3 million earlier this year in an effort to help homeowners and small business entrepreneurs.
“Our neighborhood strategy is providing support that spurs economic mobility for individuals and families,” said Matt Elliott, Michigan market president at the Bank of America in a statement.
The announcement was made at Detroit Sip, a community coffee shop and a Motor City Match recipient in the city’s Livernois-McNichols neighborhood, an area that has been supported by Invest Detroit.