Comerica Bank today announced it will invest up to $5 million in the Detroit Home Mortgage program, which is managed by the Community Reinvestment Fund (CRF). Comerica also plans to become a participating lender in the program moving forward, allowing prospective Detroit homebuyers to apply at Comerica for financing through Detroit Home Mortgage.
Detroit Home Mortgage was developed last year to help remedy Detroit’s appraisal gap problem. With Detroit housing generally appraising at a lower value than the acquisition and renovation price, prospective homebuyers often had difficulty financing the purchase of local homes.
A collaboration between government, local banks, foundations, and non-profits, the program allows buyers to attain a second mortgage to help fill that gap.
“It’s been inspiring to watch the transformation of downtown Detroit over the past several years,” says Michael T. Ritchie, president of Comerica Bank-Michigan. “Detroit Home Mortgage is helping to push that revitalization out into the neighborhoods, and we’re proud to support that effort through our investment in Detroit Home Mortgage.”
A list of lenders participating in the Detroit Home Mortgage program can be found here.