Rocket Mortgage® And Detroit Housing Network Help Detroiters Achieve Homeownership Readiness

Feb 17, 2023

4-minute read

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An inviting communal living space in a public house with cozy furnishings and vibrant decor.

Homeownership is one of the biggest drivers of generational wealth. However, there’s a lot that goes into getting ready. Rocket Mortgage and the Detroit Housing Network have partnered to ensure that all Detroiters have access to the resources they need to take the next step on their homeownership journey.

The program, called Detroit Home Loan+,1 is a special lender credit specifically tailored to Detroit residents. Together with the Detroit Housing Network, we’re working to make sure you have the resources and information you need to move forward and get a home of your own.

Overcoming the Obstacles to Getting the Keys

When buying a house with a mortgage, one of the biggest upfront costs is the down payment. However, there are also other closing costs for things like title insurance, appraisal, recording fees and prepaid interest points.

Detroit Home Loan+ helps alleviate these costs by providing a $2,500 lender credit in order to remove a barrier to homeownership for Detroiters. However, there are other qualifying factors to be aware of. Below, are a few examples:

  • Income: You can receive income from a variety of sources, including full- and part-time jobs, pensions and disability. The important thing is that the income is consistent and enables you to make your monthly mortgage payment.
  • Debt: Having a little bit of debt isn’t a bad thing. Many people have car, student loan payments and a credit card or two. However, lenders want to make sure that your debt level is manageable, so they will compare your monthly minimum debt payments to your income before taxes to determine how much you can afford. Every loan option is different, but it’s a good idea to keep your monthly debt-to-income ratio (DTI) at or below 43% in order to qualify for financing.
  • Credit Score: You can think of your credit score as a snapshot of your creditworthiness to a lender. It takes into account factors like whether you pay on time, how much credit you use relative to the limit on credit cards, whether your credit is new and how long you’ve had your oldest account. Depending on the loan you’re looking to get, you’ll usually need a minimum qualifying credit score of 580 or 620. However, the higher the better because higher scores translate to lower interest rates.

If you are in a situation where your credit score could use some help, some of the most impactful things you can do include paying off debt and