DETROIT - The Detroit lender Rocket Mortgage has announced a new city-specific housing loan will ease the closing costs of purchasing a new home.
A new program from the mortgage giant will free up $2,500 in credit that can be used for anyone purchasing a primary residence in Detroit.
Dubbed the Detroit Home Loan+, the company's CEO said it was doubling down on the promise to make buying a home more attainable for those struggling to find stable housing.
"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," said Jay Farner in a release.
Closing costs can amount to thousands of dollars and aren't part of the interest rate on a mortgage. Things like loan origination, third-party fees, title work, appraisals, can add up to a $5,000 cost after a mortgage is finished.
The $2,500 in credit would go toward those costs.
Rocket Mortgage says it will also help Detroit residents who don't have a bank account or need help boosting their credit score by connecting them with MoCaFi, a Black-owned bank. If needed, people will also be connected to the city's housing network that offers advice and resources for housing services.
The loans would be applied for all eligible mortgages, which include FHA and VA loans.
The new program is part of a wider initiative from the company's founder Dan Gilbert, who, along with his wife, has planned to invest $500 million into Detroit communities by wiping out property tax debt for residents. It'll be spread out of 10 years.