Recently, I sat down for lunch with an engaging, young mortgage professional, Hillary Kooy, to talk about her involvement with the Garfield Park Development Corporation. The Garfield Park Neighborhood in Grand Rapids, Michigan is roughly bounded by Cottage Grove Street to the north, 28th Street to the south, Division and Century Streets to the west, and Eastern Avenue to the east.
Garfield Park is an eclectic and diversified neighborhood which is anchored by the historic neighborhood park by the same name. It’s a neighborhood which also supports a number of ethnic and minority communities and businesses. The Garfield Neighborhood Association is one of Grand Rapids best known and established community organizations. In 1992, concerned residents within the Garfield Park neighborhood formed an adjunct which is known as the Garfield Development Corporation.
The Garfield Development Corporation was founded to open up home ownership to people who had been shut out of the process for a variety of reasons. Through the Homebuyer Purchase & Renovate Program (HPR) a grant funded by the State of Michigan, the Garfield Development Corporation has been able to help homeowners with limited funds purchase affordable homes.
As Hillary explained the opportunities to me, I was astounded! The HPR Program enables Buyers to qualify for grants up to $10,000for Down Payment Assistance to purchase a home of their choice as long as the home falls within the prescribed boundaries.
But wait… it gets better! If a home has lead based paint and requires lead based paint abatement, the borrower can get an additional $10,000 grant to execute this renovation. And that’s not all. Based on a home inspection and approval, AND provided the funding is available, home buyers can qualify for up to $20,000 for energy efficient home improvements that can include items such as: a new roof, furnace, replacement windows or new appliances.
The Best Part of the program is that the Grant is forgiven after 50 years. While it’s true that most people will not be staying in a home for that long, a unique aspect of the program enables qualified buyers to take advantage of these resources and be liable for only the portion of the improvements which make up the current market value as verified by a current appraisal.
For a buyer contemplating buying a home in what is now referred to as a “Declining Market” this is heaven sent relief! Here’s how it works. (1) You go out & find your home within the boundaries served by the program (2) You buy a home with Assistance from the Down-payment Assistance Fund. (2) It needs some repairs which you qualify for & get done by a licensed approved contractor. (3) Then…another appraisal is done to determine current value WITH the repairs. The final loan you are assessed on a Silent Second Mortgage is only the Difference between what you Bought the home for and what the home is now worth on the Current Market based on the new appraisal!
It’s an extraordinary opportunity! If you’re thinking about purchasing or selling your home in the Grand Rapids area and would like to explore this further, this is a program that merits your attention. Feel free to contact us if you have any questions.
*This home is an example of the quality of construction and type of home which buyers can purchase. Or home buyers can purchase a home & fix it up. This year, Garfield Development Corporation hopes to build at least 2 brand new homes and offer them for Sale. You can choose to work with your favorite loan officer & real estate agent & buy one of these homes. They will work with any qualified real estate agent who brings a qualified client. This is a terrific Win Win for all concerned. Make sure to check this out!
Copyright 2008 Audu Real Estate All Rights Reserved