A Guide for Detroiters: Up to $45k to Buy a Home & Which Lenders Close Those Loans

The City of Detroit’s down payment assistance (DPA) program makes available up to $25,000 to support Detroiters seeking to purchase a home in the city. This short guide details how Detroit residents can access the city’s DPA funds, and details options to “stack” DPA from other sources to yield up to $45,000 to purchase a home. The city has highlighted 13 mortgage lenders as participating in the program. Analyzing Home Mortgage Disclosure Act data, lender performance and volume of originations is discussed so that buyers can be better informed of lender performance before applying for a mortgage. The paper also details information helpful to finding a home when properties with condition challenges, and limited availability in buyer-desired locations, constrain the supply of home options available for purchase.

This paper is published in collaboration with the University of Michigan Center for Equitable Family and Community Well-Being. Thanks to Co-Author Patrick Meehan, PhD, for the use of Home Mortgage Disclosure Act data his team maintains for analysis.