Apr 3, 2023 - Real Estate

Detroit's new down payment program offers up to $25K to some renters

Illustration of a hand fitting a house in a gap.

Illustration: Aïda Amer/Axios

Detroit's new down payment assistance program will use $6 million in pandemic relief funds to give hundreds of current renters up to $25,000 to purchase a home.

Why it matters: Homeownership is one of the greatest tools to create generational wealth, and past discriminatory policies, like redlining, have kept Black people from homeownership, Council President Mary Sheffield said at a news conference last week.

Driving the news: The program, announced last Thursday, will use American Rescue Plan funds to give grants to up to 400 lower-income residents, as well as those whose home was foreclosed due to property tax overassessment between 2010 and 2016.

  • It's part of a $203 million affordable housing plan unveiled last July.

Details: To be eligible, applicants' household income can't exceed certain thresholds, such as $43,740 for a one-person household, $59,160 for two and $74,580 for three.

  • Applications are reviewed on a first come first serve basis. You can apply online or by calling (313) 244-0274.

What they're saying: "There are a lot of Detroiters who are paying more in rent each month than the cost of a mortgage payment, but need some help with upfront costs associated with purchasing a home," Mayor Mike Duggan said.


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