More than 300 Detroiters now homeowners due to city's down payment assistance program
(CBS DETROIT) - More than 300 people in Detroit have become homeowners for the first time after getting help from the city's down payment assistance program.
The program was launched in March and uses $12.25 million in funding from the American Rescue Plan Act to provide about 450 people with up to $25,000 for a down payment to purchase a home, according to the city of Detroit.
The first round of the program closed on Monday, Dec. 4, and during this period more than 300 Detroiters became homeowners and another 76 are in the process of closing on their homes.
Additional applications that have been received will still be processed until all the funding for the first round is used.
The program was started with the purpose of helping renters who could afford a monthly mortgage payment, but did not have enough savings to put a payment down for a house.
The city says the average price of the homes purchased was $116,000 and renters received an average amount of $24,400 for their down payments.
"There are a lot of Detroiters who are paying enough in rent to pay a mortgage, but just need some help with the downpayment costs," said Mayor Duggan. "We created the downpayment assistance program so hundreds of Detroiters can kiss their landlord goodbye and have the security of owning their own home."
In addition, the program initially was allotted $6 million to provide to renters, but due to its success, the funding was increased to $12.25 million.
For more information on applications for the second round of the program, visit here.