In Detroit, over half of the city’s renters are “cost-burdened,” paying over 30 percent of their income on rent, according to city data from last year.
Local statistics also reveal that there is a very apparent lack of housing for extremely low-income families causing a third of the population lives below the poverty line.
Nationwide, numbers in the last year have been bleak as well with nearly a third of all U.S. households spending over 30 percent of their income on rent alone. Rental prices have increased 150 percent over the last 10 years while earnings have, for the most part, remained the same. Not to mention housing barriers impacting Black Detroiters at higher rates than their white counterparts.
Today, however, owning a home in Detroit just got a bit easier for residents.
Rocket Mortgage, the country’s largest mortgage lender and a part of Rocket Companies, announced today that a full suite of programs will be available to help Detroit residents who are interested in buying a home in the city — no matter which step they’re on with their homebuying journey.
The new initiative includes $2,500 in lender credits when purchasing a house in Detroit, along with resources for residents who are underbanked or can benefit from credit counseling and homebuyer education, according to a press release.
“Detroit has been home to Rocket Mortgage for more than a decade. In that time, we have been proud to use our expertise to create initiatives that support the city’s homeowners,” said Jay Farner, CEO of Rocket Companies in a press release. “Today, we are doubling down on that commitment. By increasing access to banking, credit building opportunities, and, ultimately, home financing, more Detroit residents will be able to build equity through homeownership, which increases neighborhood stability and opportunity for future generations.”
Laura Grannemann, vice president of Strategic Investments of the Rocket Community Fund, told the Michigan Chronicle in an exclusive interview that the company is dedicated to searching for options to improve the lives of residents in Detroit.
“We’re consistently finding a better way to serve our clients and communities,” Grannemann said, adding that the Rocket Community Fund oversees numerous housing stability-based initiatives to prevent property foreclosures, assist with homeownership repairs, driving systemic change, and more. But it felt like something was missing. “Beyond homeownership base and accessibility (we want to) make sure we’re driving new homeownership opportunities.
Grannemann said that thinking about homeownership, especially homeownership in the Black community, propels her and the company to find even more equitable solutions for all.
“The power of a home and owning a home — any Detroiter that wants a home has the power to do so,” she said, adding that everyone’s “next step looks a little different” but the journey is getting toward the same destination: homeownership.
Rocket Mortgage’s new initiatives start with those who have a desire to buy a home but need some help along the way. If a Detroiter does not have a bank account or needs to boost their credit score, Rocket Mortgage will connect them with MoCaFi, a Black-owned FinTech company.
“MoCaFi’s goal, as part of the Detroit Home Loan+ program, is to provide the Detroit community with a broader set of resources that can help them take the steps needed to prepare for homeownership. We, along with Rocket Mortgage, believe everyone should have an opportunity at this important part of the American Dream,” said Wole Coaxum, CEO of MoCaFi in a press release. “Our journey starts with getting Detroiters a bank account if they don’t already have one. We can also help them bring additional data – including rent payments – into their credit report. We believe offering Detroit residents strong banking and credit fundamentals will create a better path to purchasing a home and getting the stability and equity that comes with it.”
Detroiters in need of additional support will be connected to the Detroit Housing Network – a conglomerate of six Detroit-based nonprofits providing wide-ranging housing services for renters, homebuyers, and homeowners. Clients will get hands-on support from trained specialists to prepare them for homeownership.
Grannemann said this more inclusive homeownership project is largely geared toward existing Detroit residents currently renting and who “don’t know the options available to them.”
“I’m really excited about is the fact that we have all of these wraparound services and partners here to make sure as our clients come in to access this product … we have support to support clients in the short and long term.”
Bill Banfield, an executive vice president of Rocket Mortgage, told the Michigan Chronicle that the company needed to help address the wealth gap.
“One of the biggest impediments to buying a home is down payment,” he said, adding that those ready to buy a home can take advantage of the money available to those who are eligible.
Once ready to become a homeowner, Detroit residents can leverage Rocket Mortgage’s new Detroit Home Loan+ program to receive a $2,500 closing cost credit when buying a primary residence in the city. The closing cost credit is automatically applied to all eligible mortgages, which includes conventional, FHA, and VA loans. Detroiters can apply through the Rocket Mortgage app or call the Detroit Home Loan+ mortgage banking specialists.
“The Rocket Community Fund is dedicated to building homeownership, wealth, and stability for all Detroit families,” said Grannemann “Through programs like Detroit Home Loan+, Rehabbed & Ready, Make It Home and Neighbor to Neighbor we are directly addressing the systems that have historically prevented residents from owning their own homes and building equity.”
Homebuyers can apply for a mortgage and take advantage of the Detroit Home Loan+ program by visiting RocketMortgage.com/Detroit or by calling 800-291-1488.
For more information, visit RocketCommunityFund.org.
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