DETROIT (WXYZ) — Today, the City of Detroit announced an effort to boost homeownership and build generational wealth.
The $6 million dollar program helps aspiring homeowners pay their downpayment, according to Mayor Mike Duggan.
Eligible candidates will receive up to $25,000 to put toward a downpayment.
“Apartments are terrible nowadays. Really bad," Detroiter Mya Williams said.
She said rising rents, among other factors, make homeownership that much more appealing. As a Michigan State University graduate and current student at Wayne State University finishing up her second bachelors, Williams said she’s hoping to move into a career that will pay well enough to achieve her dream of building equity.
“Saving is hard, just in general. The cost of living is just, like, everything costs money especially as a woman. Everything is just expensive," Williams said.
She’s pleased to learn about Detroit's efforts to help renters become homeowners. Mayor Duggan said the $6 million funds are from President Biden’s American Rescue Plan.
“If you're paying $800 or a thousand a month in rent, you absolutely can afford a mortgage. You might not be able to afford 10, 15, 20 thousand dollars on a downpayment," Duggan said.
He said 13 banks are partnering with the city, and residents will be able to go to those banks to get approved for a mortgage if they qualify.
The city cites the latest census data as showing Detroit has become a majority homeowner city.
City officials said the program "is part of a $203 million affordable housing plan" announced in summer 2022.
Detroit city councilwoman Latisha Johnson said, “This downpayment assistant plan will help individual eliminate the possible fluctuations in rental rates to provide more financial stability, and ensure they will have shelter as well as an opportunity to build generational wealth.”
The city says you have to prove you’ve lived in the City of Detroit for the past 12 months. Also, you cannot have owned a home in the past 3 years.
Total household income requirements are as follows:
- 1-person household - under $43,740
- 2-person household - under $59,160
- 3-person household - under $74,580
- 4-person household - under $90,000
- 5-person household - under $105,420
- 6-person household - under $120,840
- 7-person household - under $136,260
- 8-person household - under $151,680
As Williams’ future unfolds, she said she hopes the timing is right and the funds are still available if she qualifies.
“I graduate in December. So, this is something that I hope is still around when I look for a home in the next year or so," she said.
