Good bargain helps renter become homeowner

After renting an apartment for two years, Ashley Johnson knew she wanted to be a homeowner, preferably in Detroit, where she works for the Girl Scouts.

Johnson prequalified for a mortgage with Talmer Bank last summer and began a diligent search for the right home within her price range in a safe, convenient neighborhood.

Near the beginning of the year, she discovered a new listing online that met all her criteria, and she immediately contacted the real estate broker, Vertitable Group.

Veritable was started by Southwest Solutions, which acquires and renovates lender-owned (REO) houses and offers them for sale to strengthen neighborhoods. One of those REO homes drew Johnson’s interest.

The home in northwest Detroit was listed for $69,000. Johnson took a close look and was impressed by the quality of the renovation and the numerous amenities. Part of the acquisition and renovation cost for the house was covered through a $5,000 grant that Southwest Solutions received from the Home Builders Association of Southeastern Michigan. Johnson further researched the neighborhood, then offered $75,000 for the home.

“I offered more than the asking price because I already knew the home would appraise for a greater value and I wanted to make sure I was the high bidder,” explains Johnson.

She also understood she could defray a significant part of the purchase price through Detroit HomeLIFT. This program provides eligible homebuyers with $15,000 toward a down payment and closing costs on qualified homes. HomeLIFT is sponsored by Wells Fargo and NeighborWorks America, and the Detroit program is administered by Southwest Solutions. Participating homebuyers must purchase in Detroit, Hamtramck, Highland Park, Livonia or Dearborn. Johnson worked with Southwest Lending Solutions and Southwest Economic Solutions to secure the HomeLIFT funds.

“It was a smooth process for me to acquire the home and HomeLIFT assistance, which made the home an even better bargain,” says Johnson, who moved into the home in February.

HomeLIFT down-payment assistance can be combined with the new Detroit Home Mortgage Program, which provides a second mortgage up to $75,000 to make up the difference between the appraised value and purchase price, including the cost of renovations.

It is certainly an auspicious time for prospective homebuyers in Detroit.

Original story posted on www.swsol.org.