DETROIT – Detroit lender Rocket Mortgage has announced that a new city-specific home loan will ease the closing costs of buying a new home.
A new program from the mortgage giant will free up $ 2,500 in credit that can be used by anyone buying a primary residence in Detroit.
Dubbed the Detroit Home Loan +, the CEO of the company said he was doubling down on his promise to make home buying more accessible for those struggling to find stable housing.
“By increasing access to banking services, credit opportunities, and ultimately real estate finance, more Detroit residents will be able to build equity through homeownership, which increases the stability of the neighborhood and the opportunities for future generations, ”Jay Farner said in a statement.
Closing costs can run into the thousands of dollars and are not part of the interest rate on a mortgage. Items such as origination of loans, third party fees, title deeds, appraisals, can add up to a cost of $ 5,000 after the mortgage is terminated.
The $ 2,500 credit would be used to cover these costs.
Rocket Mortgage says it will also help Detroit residents who don’t have a bank account or need help boosting their credit score by connecting them to MoCaFi, a black-owned bank. If necessary, people will also be connected to the city’s housing network which offers advice and resources for housing services.
The loans would be applied to all eligible mortgages, including FHA and VA loans.
The new program is part of a larger initiative by company founder Dan Gilbert, who, along with his wife, has plans to invest $ 500 million in communities in Detroit by wiping out residents’ property tax debt. It will be spread over 10 years.