Advancing family stability and generational wealth by helping Michigan families achieve and sustain homeownership
Attainable Homeownership
OppFund has over 40 years of experience helping Michigan families own and preserve their homes. We offer a wide variety of loans with flexible terms.
Fresh Opportunity Mortgage
OppFund offers a signature loan product which helps individuals and families (earning up to 100% Area Median Income, or AMI) gain access to the funds for purchasing a home. We work closely with a borrower to review their entire financial picture, not just the credit score.
MSHDA Single-Family Mortgage
OppFund is certified by MSHDA to offer first-time home buyers (earning up to 120% AMI) a single-family mortgage product with downpayment assistance.
Community Land Trust (CLT) Loan
We offer dedicated loans supporting acquiring and preserving permanently affordable homes for households earning up to 120% AMI.
HomeBridge Loan
OppFund offers a low‑dollar, rent‑to‑own financing product designed to help renters (earning up to 80% AMI) transition into stable homeownership. Through flexible, low‑dollar financing, HomeBridge allows renters to gradually transition into ownership by building payment history, strengthening financial readiness, and completing essential pre‑purchase requirements while remaining securely housed.
Municipal Home Improvement Loan
OppFund parters with municipal governments (e.g., City of Detroit) to provide a financing tool designed to help homeowners address critical repairs and safety issues that affect the quality, durability, and health of their homes. By offering accessible capital with manageable payments, Municipal Home Improvement Loans help prevent displacement, reduce emergency repair crises, and extend the lifespan of existing housing stock—often at a fraction of the cost of new construction.
Mortgage Loan FAQs
Common Loan Terminology
If you are buying or refinancing a home, your loan officer or real estate agent may be using some words that you are unfamiliar with. Below we have listed some commonly used terms you will hear throughout the home financing process.
Annual Percentage Rate (APR) – The annual percentage rate is a broad measurement that reflects your interest rate plus additional fees over the life of the loan. It is shown as a percentage of your mortgage amount.
Appraisal – An appraisal determines the value of the home you want to purchase. This is done by an inspection from an appraiser who will evaluate the home and compare it to similar real estate that has recently sold in the area.
Closing Costs – Closing costs include all the fees and costs that need to be paid before or at the time of closing. Your loan officer will go over all the costs that you will be responsible for according to your mortgage contract.
Closing Disclosure– This 5-page document specifies the terms of your home loan, such as your monthly payments, interest rates, and closing costs.
Credit Score – Your credit score gives your lender a quick and objective way to measure the risk of issuing you a loan. FICO scores are the most widely accepted credit score used.
Down Payment – The lump sum of money you pay toward your home upfront is called a down payment. A typical down payment ranges from 3% to 20% of the purchase price depending on your loan type. Some loan programs have no down payment amount required.
Debt-to-income Ratio (DTI) – Your Debt-to-Income Ratio is the percentage of your gross income that goes towards paying off your overall debt every month. The lower your debt-ratio, the better your chances are of qualifying for a mortgage.
Escrow- account set up by a lender in which funds to pay for real estate taxes and homeowners insurance are deposited as part of the borrower’s monthly mortgage payment, then disbursed as tax and insurance payments come due.
Fixed Rate Mortgage – A fixed rate mortgage has an interest rate that remains the same for the entire life of the loan. If your interest rate is fixed, your monthly payments do not rise or fall.
Homeowner’s Insurance – Before a loan can close, you are required to secure a home insurance policy. This policy protects your home and all the things inside it in the case of a fire or other qualifying event.
Loan Estimate-Disclosure to help consumers understand the key loan terms and estimated costs of a mortgage before they make a complete application. After a consumer submits 6 key elements: name, income, social security number, property address, estimated property value and desired loan amount, the lender is required to provide this form. All lenders are required to use the same standard loan estimate form to make it easier for consumers to compare and shop for a mortgage.
Origination Fee – when applying for a mortgage loan, borrowers are often required to pay an origination fee to the lender. This fee may include an application fee, appraisal fee, and fees for all the follow-up work and other costs associated with the loan.
Prepaid expenses
The expenses that are usually paid in advance, such as escrows for taxes and insurance (which are paid at closing).
Prepaid interest
Interest collected at the closing of a first mortgage, covering the period from the date of disbursement to the start of the next payment period.
Principal – The total amount you owe on your home is called the principal. As you pay down this balance, you are earning more equity in your home.
Private Mortgage Insurance– Private mortgage insurance is normally paid monthly, but in some cases, there is an option to make a large upfront payment. The amount depends on the down payment made on the property as well as the borrower’s credit score and is usually between 0.3 and 1.5 percent annually. If your down payment is less than 20 percent of the purchase price, PMI is almost always required
Still, have questions? Contact us any time with any of your home financing questions, we are always happy to help.
https://www.consumerfinance.gov/consumer-tools/mortgages/answers/key-terms/
Bankruptcy or Poor Credit History
Our customer experience ambassador provides guidance to applicants on the actions and resources needed to improve an individual’s credit profile and overall loan readiness. These include credit score, budgeting, lowering existing debts, and working through all other financial obstacles preventing individuals from realizing the dream of homeownership.
Standard Mortgage-Related Costs
- Earnest deposit for Purchase Agreement if offered accepted varies from $500 to $3000
- Property Inspection Fees (paid to Third-party Vendor selected by applicant) fees vary from $250 to $1000
- Property Appraisal Fee (paid to Opportunity Resource who pays Third-party Vendor) fees vary from $350 to $1100
- Homeowner’s Insurance Policy- (paid to Third-party vendor selected by applicant) fees vary based on the individual applicant
- 3%-10% down payment amount of sales price of the home
- Closing costs – title fees, transfer tax, property taxes, initial escrow account set-up, etc.) 3%-10% of sales price varies based on third-party vendor fees.
Pre-Approval Timeline
The pre-approval process general takes 30 days from the time a complete application package is provided by the applicant.
PMI (Private Mortgage Insurance)
P.M.I. stands for Private Mortgage Insurance. These are privately-owned companies that provide mortgage insurance that protects lenders against some or most of the losses resulting from a default on home mortgages. OppFund only requires PMI on a Fannie Mae or FHA Conventional Mortgage Loan, when the loan exceeds 80% loan to value.
Pre-Qualification vs Pre-Approval
A pre-qualification is only an estimation a Loan officer makes regarding an individuals ability to buy a home. The estimation is based on credit score and self-reported details such as income, existing debts, and credit history. Pre-qualifications help applicants decide on which mortgage program best fits their needs.
A pre-approval is an official commitment made by Lender that details how much you can borrow. This occurs after a Lender has completed a formal underwriting process and reviewed all required documents.
Case Study: Detroit Zero
The Challenge: Detroit faced persistently high eviction rates concentrated in low-income neighborhoods, disproportionately affecting Black renters. Many households were cost-burdened, lacked legal representation, and had limited access to emergency rental assistance. Eviction contributed to housing instability, school mobility, financial hardship, and neighborhood decline, reinforcing long-standing inequities.
The Solution: OppFund’s administration of the Detroit 0% Home Repair Loan Program, a municipal home improvement financing program, directly strengthens homeowner stability and neighborhood resilience. The initiative, managed in partnership with LISC Detroit and the City of Detroit, provides 0% interest, 10‑year home improvement loans of $5,000–$25,000, making critical repairs accessible to households traditionally shut out of conventional credit markets.
The Impact: Since launch in 2015, OppFund has delivered over $8 million in financing to nearly 400 homeowners, addressing essential health and safety risks like lead remediation, roofing, furnace replacement, and structural repairs. The program, with more than 90% of repayment, is widely recognized as a preservation tool while also helping maintain intergenerational wealth.
OppFund’s Impact on Homeownership in Michigan
- 54% first-time homebuyers
- 73% female-headed households
- 95% borrowers stabilized homeownership for a minimum of 5 years
- 55% homeowners who received an additional 24+ months of foreclosure retention support were able to maintain their mortgage loans
Speak With Our Team Today!
Avanti F. | Grand Rapids, MI
Loan Process
1. Application
The loan approval process begins once an applicant has completed a loan application and provided the required documentation. The prospective loan fees, interest rates, and terms are disclosed so the applicant can begin assessing the total cost of the mortgage.
2. Processing
The information provided by the applicant is reviewed and verified ensuring it is complete and accurate. If items are missing or incomplete a loan officer may contact the applicant to offer additional assistance or request documents.
3. Underwriting
The underwriting staff begins reviewing all submitted documents to ensure the applicant meets the loan program’s requirements. Additional documentation and/or clarifications may be requested during this time. Loan decisions are provided whether it’s a Denial or Conditional Loan Approval and usually take 5-10 days.
4. Pre-Approval
Following conditional approval, OppFund will provide you with a pre-approval letter that you may use as your begin your home search. Once you find a home and your offer has been accepted, title insurance is ordered, and the borrower will have upfront expenses for inspections, appraisals, and earnest money deposits. Once all loan contingencies are met and verified by underwriting an applicant may schedule a closing.
5. Closing
Once the loan has been fully approved and a closing has been scheduled, the applicant prepares a cashiers check for the title company and signs all closing documents. The mortgage loan process is now complete and your homeownership journey begins.