Detroit Mayor Mike Duggan says only 10-percent of home purchases in the city last year used mortgages. The rest were made in cash. He says because of the discrepancy, the city is partnering with the National Assistance Corporation of America and Bank of America to make mortgages and interest rates more accessible. National Assistance Corporation of America CEO Bruce Marks says the terms of the offer are simple: no down payment, no closing costs and below market rates.
“Today’s rate on a 30-year mortgage: 3.5%. Today’s rate on a 15-year mortgage is 2.75%, and you can buy it down to virtually zero-percent.”
Marks says all residents are eligible for the program as long as they do not own another property at time of sale. He says in order to begin the qualification process participants must attend a homebuyer’s workshop.