**Title: Unlock Homeownership in Detroit with Up to $25,000 in Down Payment Assistance**
**Program Provides Qualified Detroiters With Up To $25,000 In Down Payment Assistance**
Homeownership is a cornerstone of the American dream and a key method for building and passing on wealth. However, the initial costs, particularly the down payment, can be a significant barrier for many aspiring homeowners.
A down payment assistance program for Detroit residents offers up to $25,000 to qualified individuals to help them purchase a home. The first round of this program enabled 434 Detroiters to become homeowners.
O1ne Mortgage Inc. is excited to participate in Round 2.1 of this program. Heres a detailed look at what the program entails, how to qualify, and how to apply.
### What Is The Detroit Down Payment Assistance Program?
The Detroit Down Payment Assistance Program provides up to $25,000 in down payment assistance for eligible residents through a forgivable second lien from the city of Detroit. This initiative is a collaboration between the Detroit Housing & Revitalization Department and City Council, with Detroit Mayor Mike Duggan announcing a $7 million allocation. This funding includes $5 million from the American Rescue Plan Act (ARPA) and an additional $2 million from partners. The program is administered by National Faith Home Buyers.
The second round aims to help 300 lower-income and middle-class families become homeowners. If youre ready to buy, act quickly as funding is limited. The assistance can be used for:
– Down payment
– Closing costs
### Who Qualifies For This Down Payment Assistance?
To qualify for this down payment assistance, you must meet several criteria. Firstly, you cannot have had any ownership stake in a home in the last three years. Additionally, one of the following must be true:
– You have lived in the city of Detroit for the last 12 months.
– You lost a previous home in Detroit between 2010 and 2016 due to a property tax foreclosure.
There are also household income limits. Your total household income must not exceed 300% of the national poverty level based on household size, as defined by the U.S. Department of Health and Human Services. Income is counted for everyone in the household aged 18 or older. Here are the 2024 limits:
– [Insert 2024 income limits here]
Beyond this, you must contribute at least $1,000 of your own funds toward the down payment. The home must be in Detroit, have no more than two units, and be used as your primary residence for at least three years. The assistance is a forgivable second lien, so if you move out before three years, youll need to repay it.
Your housing expense ratio cannot exceed 35% of your monthly income. This ratio is calculated by dividing your mortgage payment by your pretax income. Your mortgage payment includes:
– Principal
– Interest
– Property taxes
– Homeowners and mortgage insurance
– Homeowners association dues (if applicable)
For example, if your household income is $42,000 annually ($3,500 monthly) and your total mortgage payment is $1,200, your housing expense ratio would be 34.29% ($1,200 ÷ $3,500 × 100 = 34.29%). This is within the acceptable range.
You cannot receive assistance totaling more than 50% of the purchase price, down payment, prepaid items, and closing costs.
### Requirements To Apply
To apply for this assistance, follow these steps:
1. Obtain a mortgage preapproval.
2. Have a signed purchase agreement.
3. Complete a HUD-approved education course and submit the certificate.
4. Work with an approved lender, such as O1ne Mortgage Inc.
### Make Your Down Payment Go Further
You might not need as much as you think for a down payment. O1ne Mortgage Inc. offers the ONE+ program, which requires only a 1% down payment and provides a 2% grant.
To qualify, your income must be no more than 80% of the median income for the area where youre buying. Additionally, its a conventional loan, so your FICO® Score should be at least 620.
To improve your chances of qualifying, keep your total debt-to-income ratio (DTI) all monthly debt payments including your mortgage at 50% or lower.
### The Bottom Line
If you can afford a mortgage payment but the down payment is a hurdle, and youre buying a primary residence in Detroit to live in for at least three years, the Detroit Down Payment Assistance Program offers up to $25,000 for your down payment and closing costs.
Interested in the program? Start by working with a participating mortgage lender. Apply online with O1ne Mortgage Inc. for more information on how to proceed.
For more details or to apply, visit [O1ne Mortgage Inc.](https://o1nemortgage.com) or call us at 888-372-8820.
**Keywords:** Detroit down payment assistance, homeownership in Detroit, mortgage assistance, O1ne Mortgage Inc., Detroit housing program, down payment help, Detroit home buyers, mortgage preapproval, HUD education course, ONE+ program.
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