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Detroit Announces New Program to Jumpstart Mortgages
"A new program to help Detroit home buyers finance purchases will guarantee 1,000 mortgages in a city where banks have been skittish about lending because of deeply depressed property values," reports Matt Helms.
"Called the Detroit Home Mortgage, the program will offer traditional first and second mortgages from five banks that lend to home buyers in metro Detroit," adds Helms.
According to officials, the low number of mortgages in Detroit depresses property values in the city. The program targets potential buyers who would easily qualify for mortgages in suburban cities, "but stumble in Detroit, where property values have yet to recover from the recession and subprime mortgage foreclosure crisis, still 50% below where they were in 2007."
The news about Detroit Home Mortgage attracted both Mayor Mike Duggan and Governor Rick Scott to the press conference announcing the program. Julian Spector also covered the new program for CityLab.