DETROIT – Homeownership is one of the biggest drivers of generational wealth in the United States, but for many would-be buyers, saving for a down payment can feel out of reach — especially with today’s prices and higher costs of living.
Detroit leaders say a city program is helping change that by putting real dollars behind first-time homebuyers who need help getting to the closing table.
For lifelong Detroiter Gail Gibson, owning a home wasn’t always a goal — until her housing situation suddenly changed.
“I never owned a home, and I’ve been here all my life,” Gibson said.
Gibson spent a decade renting a home on Detroit’s east side. Then, she says, her landlord called with an ultimatum: he was considering selling the property or raising her rent significantly.
“One morning, my landlord called me and told me he was going to either sell the house or go up on my rent,” Gibson said. “And I said, well, how much are you going to go up on the rent? He said $1,100.”
Facing the possibility of a major rent hike, Gibson began researching options — and found Detroit’s Down Payment Assistance Program.
Mayor Mary Sheffield says the initiative is designed to create more pathways to homeownership and strengthen Detroit’s middle class.
“We have to have a path to homeownership for our residents to continue to build the middle class,” Sheffield said.
The program offers up to $25,000 in down payment assistance and closing costs for qualifying first-time homebuyers — a financial boost city officials say addresses one of the biggest barriers to buying a home.
“For many residents, we often know the down payment is often the biggest barrier,” said Jill Schneider with the City of Detroit.
So far, the city says the program has helped 794 people purchase homes across Detroit neighborhoods. And beyond the money, officials say buyers aren’t expected to navigate the process alone.
Detroit is partnering with organizations like National Faith Homebuyers to connect applicants with homebuyer education and counseling meant to improve long-term success. Executive Director Deena Harris says the range of people seeking help has been broad — from seniors to recent graduates.
“Everybody,” Harris said when asked who is coming in for assistance. “Senior citizens are buying homes. Young people are buying homes. College graduates. It’s amazing. Single women. Single men. Not enough men — we are doing a call to action for men. It’s time for you to buy your own home as well.”
For Gibson, the program made homeownership possible, allowing her to purchase the very house she had been renting from her former landlord.
In her view, the decision is bigger than her own stability. She says it’s about building generational wealth and creating a foundation for her daughter and granddaughter.
“It’s an investment in my family’s future and it’s also an investment for me,” Gibson said.
City leaders say they expect to help about 450 more first-time homebuyers during this round of funding. For more information about the Detroit Down Payment Assistance program, click here.