The Fund created the Fresh Opportunity Mortgage to assist homebuyers and revitalize Metro Detroit and other select areas of Michigan. Financing is provided to homebuyers who have been turned down by traditional lenders, or who do not meet standard credit criteria.
- Loan amounts from $10,000 to $200,000
- No prepayment penalties
- No ARMs, reverse or negative amortization
- No balloon loans
- No monthly mortgage insurance
- Financing with as little as 3% down
- Maximum loan-to-value is 97%
- No minimum credit score required (subject to underwriting approval)
- Down payment assistance accepted
- Flexible in-house underwriting
- 10, 15 and 30 year fixed terms available
- Individuals or families buying a home in Michigan from a community-based organization or in an NSP community.
- May use down payment assistance provided by the municipality in an area slated for revitalization.
- Will have been turned down for financing from a traditional lender or will not meet standard criteria.
- Must have a household income that does not exceed HUD’s definition of moderate income, which is 100% of the area median income for the county in which they reside. If the home being purchased is located in an NSP area, up to 120% of area median income is allowable. The income of all adult individuals residing in the home and/or listed on the title may be included in the calculation of household income.
Credit Assessment Guidelines
- Chapter 7 bankruptcies must be fully discharged for at least two years
- Chapter 13 bankruptcies must be fully discharged for at least one year
- Foreclosures are allowed after two years if the individual can document a reasonable and sufficient cause that the foreclosure occurred. Examples include loss of employment, medical related illness, divorce, or death of a spouse. Strategic foreclosures are not allowed.
Product Credit Enhancements and Guidelines to Mitigate Loan Risk
- A minimum of eight hours HUD-approved homeownership training is required and must include some home maintenance instruction.
- In addition to the training, all borrowers must work one-on-one with a financial literacy counselor and complete a household budget demonstrating their ability to repay the mortgage and meet all financial obligations. The financial literacy counseling agency must provide the Fund with copies of the consumer’s budget, cash flow analysis and a certificate of completion.
- Prior to loan closing, the borrower must meet with a homebuyer counseling agency and/or an attorney to review all loan closing documents.
For more information please contact:
John Helbling, Loan Officer # 21505
Opportunity Resource Fund
7700 2nd Avenue, Suite 608
Detroit, Michigan 48202
Direct Dial: 313-462-2415