Detroit Neighborhood Initiative


Neighborhood Assistance Corporation of America and Bank of America have partnered with the City of Detroit to create unprecedented mortgage program for homes purchased and renovated in the city of Detroit.

Detroit Mayor Mike Duggan announced a new mortgage program that will directly address many of the problems facing those trying to be homeowners in the city of Detroit. The Neighborhood Assistance Corporation of America (NACA), along with Bank of America, have created the “Detroit Neighborhood Initiative,” a program for homebuyers in Detroit that combines a zero down, low interest fixed rate mortgage, and other very favorable terms with rehabilitation dollars necessary to rebuild Detroit’s classic houses and neighborhoods. “We know the desire to renovate these houses and rebuild our neighborhoods is there” said Mayor Duggan. “What we haven’t had is enough lenders willing to take a chance on our city to show what’s possible. That changes now in a big way.”

The Detroit Neighborhood Initiative is a cooperative effort of NACA, Bank of America, and the Opportunity Resource Fund. Buyers that complete the NACA pre-purchase home buyer program can qualify for a remarkable mortgage, which includes:


  • No down payment
  • No closing costs
  • No fees
  • Below market fixed rates (3.5% – 30 year / 2.875% – 15 year)
  • 30 year – One percent of mortgage permanently reduces rate by .25% to virtually zero
  • 15 year – One percent of mortgage permanently reduces rate by .50% to virtually zero
  • Available on all property types: new, existing, single to four family, condo
  • Credit Score never considered in mortgage process
  • Homebuyers individual payment history utilized
  • Underwriting done by NACA

Most importantly, all buyers in Detroit will have access to loans worth up to 110% of the home’s loan- to-value ratio. For homes bought through the Detroit Land Bank’s site,, that loan-to-value ratio increases up to 150%.

The NACA program is already established as the best mortgage in America, and is available in 40 other markets. But NACA CEO and founder Bruce Marks says the Detroit program, and its up to 150% loan-to- value ratio is unprecedented. “This is a game changer, which has never been done in the history of mortgage lending. The mayor of Detroit, Bank of America, and NACA are not only redefining neighborhood stabilization for Detroit, but are providing a national model of a true partnership that will significantly stabilize both neighborhoods and homeowners. It shows a path forward for how hard hit communities can truly be revitalized.

Bank of America will be providing the mortgages up to 150% LTV through NACA and the Opportunity Resource Fund for borrowers who complete the NACA pre purchase program. This will allow buyers to qualify for mortgages in a market that has been hard hit by the decline in property values in the wake of the recession. “Detroit has unique challenges in its housing market” said Mayor Duggan. “I have been upfront about the need to try something new and different to help kick-start things, and rebuild property values in Detroit. Allowing those that want to invest and live in our city to access the money they need to make their dream home a reality is a crucial step. I am thrilled about the faith that Bank of America, NACA, and the Opportunity Resource Fund have shown in our city and its people.”

The partnership made sense, according to Bank of America. “Our ties with the people and businesses of this community are deep and longstanding,” said Matt Elliott, Michigan Market President for Bank of America. “The addition of this homeowner program gives us another tool to help play our part in Detroit’s resurgence.” That sentiment was echoed by Christi Coady Narayanan, CEO of the Opportunity Resource Fund. “We are pleased to work with the City, NACA and Bank of America to make home ownership a reality for even more Detroit residents. We have always believed that investing in Detroit – for the long term – is good for the community, its residents and businesses.”

People interested in finding out more about the Detroit Neighborhood Initiative should go to or contact NACA at 425-602-6222. In addition, all interested home buyers should attend the Home buyer’s Workshop which is the first step in becoming a homeowner on these incredible terms.

For more information: Contact NACA at (425) 602-6222

Loan Example for the Detroit Stabilization Program:

Estimated Variables 30 year mortgage 15 year mortgage
Purchase Price through $5,000 $5,000
Building Detroit
Rehab Costs $55,000 $55,000
Down Payment $0 $0
Closing Costs $0 $0
Total Mortgage $60,000 $60,000
Assessed Value $40,000 $40,000
Fixed Interest Rate 3.5% 2.75%
Principal and Interest $218 $414
Taxes $112 $112
Insurance $67 $67



Detroit Neighborhood Initiative FAQ

Who is eligible to participate?
Everybody. That includes first time home buyers, and those that are previous homeowners. The only limitation is at the time you purchase, you cannot own another property.

Can I refinance my own mortgage into this program?
No. However, if you have an unaffordable mortgage, NACA can help to modify your existing mortgage to as low as 2% and/or reduce your outstanding principal.

Do I have to be employed to participate in the program?
You must have a stable source of income.

Can l participate if I am on a fixed income?

Is there an age limit to the program?

How long does the entire process take?
It depends on how prepared you are. If you have documents for your income, assets, and other required documents, you can pre-approved in a very short period of time. Come to the home buyer workshop on the 25th of April to take the first step.

What is the process for qualifying?
NACA will verify your income, and will focus on your last 12 months of your payment history on payments you control (i.e. car payments, credit cards, etc.) Payments out of your control, like unaffordable medical bills are not considered.

Are their limits on the size of the loan?
Yes. For single family homes in the state of Michigan, the maximum mortgage amount is $200,000 . That number increases for multi-family units.

Are contractors pre-approved for the program or can I find my own contractors?
You can find your own contractor, which must be licensed and insured.

If I get rehab financing through NACA, will I pay the contractors directly?
No. The rehabilitation money will be escrowed until various portions of the work is done. Homeowners will authorize the payments after an inspector has verified that the work has been completed in a satisfactory manner.

How much do I need to make annually to qualify for the program?
As long as you have stable income, and you are able to afford the mortgage payment, there is no minimum or maximum income restriction. Your counselor will help you determine an amount that works for you.

Can I participate in the program if I have a recent bankruptcy or foreclosure?
Yes, but the process may take a bit longer.

Can I apply for multiple loans at the same time?
No. This program is designed for people that plan to buy and live in the home.

Does the house have to be in the name of the applicant?

Do buyers have to occupy the house?

If yes, for how long?
They must live in the house until it is sold, or refinanced. There is no limit on the amount it can be sold for, or when it can be sold.

Do I have to live in Detroit to participate in the program?

Is there a minimum loan amount?

If I am unable to make payments, will you take my house?
NACA has a very extensive post-purchase program where it provides both counseling and financial assistance if you are unable to make your mortgage payment. NACA has one of the lowest foreclosure rates in the country.