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Frequently Asked Questions
Purchasers buying partially rehabbed properties through the Rehabbed & Ready program may not have delinquent property taxes in Wayne County, may not have lost any property other than their primary residence due to unpaid property taxes in Wanye County in the past three years, may not have any outstanding blight or code violations with the City of Detroit, may not be currently in bankruptcy proceedings, and must be compliant in any ongoing Nuisance Abatement proceedings.
After obtaining pre-approval of a lender, a potential purchaser will hire a buyer’s agent to work on their behalf. The buyer’s agent will submit an offer through the Multiple Listing Service (MLS). The Rehabbed & Ready team will respond to the buyer’s agent in acknowledgement of receipt within 1-2 business days. If the offer meets the standards of the Rehabbed & Ready program, the team will set an offer deadline.
When the offer deadline expires, all buyer’s agents who submitted offers will receive notification of whether their offer was accepted. If selected, the Rehabbed & Ready team will either accept the submitted offer or send a counteroffer to the buyer’s agent. Once both parties have agreed upon the terms of the Purchase Agreement, the Purchase Agreement will be executed by the Detroit Land Bank Authority. This process takes approximately 45 days.
Once the purchase agreement is executed, the buyer’s agent may schedule a buyer’s inspection with the Rehabbed & Ready team and submit an inspection addendum. If an inspection addendum is submitted by the agent, the Rehabbed & Ready team will review and work with the buyer’s agent to develop mutually agreeable terms.
Typically, once the inspection addendum is agreed upon, the lender will order its appraisal. The appraiser will schedule an appointment with the Rehabbed & Ready team. The lender will provide consistent updates to the Detroit Land Bank Authority throughout the process. Once the lender gives a “clear to close,” all parties will mutually agree on a closing date and time.
No! Rehabbed & Ready purchasers are welcome to use whatever financing works best for them. Rehabbed & Ready accepts VA, FHA, conventional and cash offers, and encourages buyers to take advantage of down payment assistance and grant programs, such as MSHDA’s Down Payment Assistance Program.
While every family is different, homeownership is attainable for many. A mortgage payment can be less than monthly rent expenses in many Detroit neighborhoods. Speaking to a loan officer at a bank or a financial counselor at the Financial Empowerment Center can help you determine if homeownership is affordable for you. When purchasing a RRR property, be sure that you are budgeting for the cost of all additionally required repairs.
The journey to homeownership can seem daunting, but it doesn’t have to be. Start by talking to a homebuyer’s counselor (for a list of counselors, explore the resources on the Journey to Homeownership page) or a mortgage lender at a bank to get pre-qualified for a loan. Not quite ready for pre-qualification? Call the Financial Empowerment Center for free, one-on-one credit repair, budgeting help, and financial planning.
Any scoped work completed by a Rehabbed & Ready General Contractor is subject to a one-year warranty, from the date construction is completed. At the closing table, Rehabbed & Ready purchasers will receive a list of warrantied items from the General Contractor. For more information on the warranty, click here.