Home Buying in Garfield Park>Question Details

Michelle Gor…, Real Estate Pro in East Grand Rapids, MI

Grand Rapids, MIchigan buyers.....did you know:Garfield development Corp has a purchase and rehab program

Asked by Michelle Gordon, East Grand Rapids, MI Mon Apr 14, 2008

Garfield development has a purchase and rehab program that will let you have your cake and eat it too!

Boundaries............South of Cottage Grove, West of 131, North of 28th and West of Eastern, (including the west side of the street of eastern) BIG area!

The home must be in the target area, you must qualify financially, and your loan has to fit the guide lines of the program, you must buy the home as an owner occupied home and LIVE in the home. The good news is a FHA will work for this program.

If you could buy a home at the listed price, and get up to $30,000.00 worth of renovations, and feel like you are living in a home worth much more, because it has been completely rehabbed, but only pay a mortgage amount on the purchase price on the home. Would you?

The renovation loan is a silent 2nd, which is interest free, and only payable if you sell the home or after 50 years.

for more info go to http://www.garfielddevelopment.org/PurchaseAndRenovate.aspx

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Answers

6
Elizabeth’s answer
There have been similar projects in and about the city of Detroit and they are great incentives to get first time owner occupying buyers into homes. If I know of anyone relocating that way I will be sure to send them your way!
Liz
Web Reference: http://www.lizindetroit.com
0 votes Thank Flag Link Mon Apr 14, 2008
BEST ANSWER
As the Director for Garfield Development Corporation, i would like to add a few notes.
1) You need to find a home that you can afford, and you need to be a low - moderate income home buyer. this is good news though, because money of the homes that need some rehad work are very inexpensive and affordable. Also, the low - moderate income requirements are actually pretty high. Check our website for the chart.
2) After you find your home, Garfield Development will pay for up to $40,000 in major upgrades and lead abatement, all following energy star efficiency requirements. Also, Garfield hires the contractors to do this work, and manages the construction for you after closing, so you do not need to worry about that. but if you would like to be involved, and there are some extra funds, we will let you help us with choosing your colors, and some of your finishings!
3) After the renovation has been completed, you are only responsible to pay back a portion of the $40,000 that we give to you. We make the calculation with an appraisal. When you purchase the home, we have an appraiser tell us what the house is worth, and that is usually the sales price. We submit the plans for the rehab that will be done, and he tells us what he thinks the new value will be based on these upgrades. Once the project is complete, he comes out to re-inspect and certify the new value, and that is what we base the amount owed on. You are only responsible for the difference between the sales price, and the new appraised value. so, if you buy the home for $50,000, then garfield puts $40,000 of work into it but the home only appraises for $60,000 - you only owe $10,000 on the second mortgage and the additional $30,000 is forgiven!
4) The second mortgage is executed by the Michigan State Housing Development Authority (MSHDA), and it is a special program that the state has created to help stimulate homeownership for low - moderate income familys by providing safe affordable and sustainable housing. This is why they are giving away a protion of the money. The second mortgage for the difference between the sales price and the appraised value is a silent second mortgage note. The are no monthly payments on it, there is no interest charged, and it is deferrable for up to 50 years. That means that you don't pay it back until you sell your home, and by that time your home should be worth a lot more than you owe!

check out the website http://www.garfielddevelopment.org - you can download and application and email it to Kevin Perdue, our project co-ordinator kperdue@garfielddevelopment.org or you can call him at the office 616.241.2443 if you have any questions.
Also, please feel free to email me if you have any additional questions about this great program, or how to obtain mortgage financing and I would love to help you out!
Hillary Kooy
Board Chair, Garfield Dev. Corp.
Mortgage Professional, Treadstone Mortgage
hillaryk@treadstonemortgage.com
2 votes Thank Flag Link Mon Apr 14, 2008
Michelle should it be East of 131? Thanks for the tip. I was not familiar of this program at all. It should come in handy.
0 votes Thank Flag Link Fri Mar 13, 2009
chris, I am happy to help! make sure you guys contact Hillary as well! Good luck and look forward to seeing the project take place!
0 votes Thank Flag Link Mon Apr 14, 2008
The project that offered similar incentives was in the North Corktown area, but in its case the homes were new construction. An additional phase is still planned, but unfortunately with the costs of construction going up, new build can't be done at the same price the first phase was completed. So I know things have been put on hold for the 2nd phase.
Web Reference: http://www.lizindetroit.com
0 votes Thank Flag Link Mon Apr 14, 2008
Thanks Liz, I will do the same for you. As this is not only good for the buyer but good for the neighborhood. Fix up some of those bank owned homes! Some of the area is in Agler Heights as well. It really is a win-win for everyone! This is money has been granted to Garfield by the state. We all pay state taxes, nice to get something back form them too!
0 votes Thank Flag Link Mon Apr 14, 2008
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