The Kresge Foundation Works to Reinvigorate the Housing Market through Detroit Home Mortgage

April 9, 2019  

The Kresge Foundation Works to Reinvigorate the Housing Market through Detroit Home Mortgage

HUD User publishes a series of case studies based on federal, state, and local strategies that increase affordable housing opportunities and support community development. The projects and community development efforts featured in these reports have demonstrated innovation through a multitude of partnerships and initiatives.

The Kresge Foundation, a Detroit-based philanthropy, has been working to revive the city's stalled housing market through the Detroit Home Mortgage (DHM) program. Launched in 2016 by Kresge and its partners and administered by Minneapolis-based Community Reinvestment Fund, USA, DHM works with five local banks to facilitate the issuance of two mortgages for each participating home purchase. The first mortgage covers 96.5 percent of the appraised value of the property, while the second exceeds this figure by up to $75,000. This second mortgage allows a borrower to buy a house with an appraisal gap or with renovation needs. DHM maintains a pool of funds to guarantee both mortgages, thereby reducing the risk of default for the originating banks. Since its launch, DHM has financed 7 percent of all mortgaged sales in Detroit.

Visit HUD User's Case Studies page to learn more about affordable homeownership and to view other promising examples of how communities across the nation are raising the bar on community development.

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