The Michigan State Housing Development Authority (MSHDA) is partnering with the Tobias Harris Homeownership Initiative (THHI), a program backed by Detroit Pistons icon Tobias Harris, on a new shared-appreciation mortgage pilot with Guild Mortgage and Homium that is designed to expand homeownership access for Detroit residents.
The mortgage product will provide qualified borrowers with up to 40% of a home’s purchase price in down payment assistance (DPA) without adding any monthly debt. Under this pilot, borrowers can obtain a conforming first mortgage without the need for mortgage insurance, thus ensuring a lower monthly payment. Instead of a monthly repayment, the borrower will repay the initial down payment assistance plus a share of the market appreciation upon sale or refinance of the property.
Initial funding for the pilot is being provided by MSHDA, as well as philanthropic grants from Harris, former Pistons teammate Jon Leuer, Pistons owner Tom Gores, made to the program’s nonprofit partner, Realize Impact.
“This new partnership will help make the dream of homeownership a reality for more Detroiters, offering the kind of affordable support that leads to long-term housing stability,” said Amy Hovey, CEO and executive director of MSHDA. “We’re moving quickly to identify new partners and programs that can help lower costs and unlock opportunities for Michigan families.”
“Homeownership is one of the most powerful ways to build stability and generational wealth,” said Harris. “With this initiative, I’m focused on expanding access to homeownership so Detroiters can plant roots and build equity in the city they call home. This is just the start, and I look forward to working with others throughout Detroit’s business and philanthropic community to grow and sustain this important program.”
