Midtown Detroit Inc is joining a small-but-growing group of Michigan-based community-development-oriented nonprofits to help make financing for renovations and sales more accessible.
Four of these eight non-profits (Midtown Detroit Inc
, Southwest Solutions
, Vanguard Community Development Corp
and Grandmont Rosedale Development Corp
) are from Detroit and make up the bulk of the Michigan Lending Solutions
consortium. The group helps homeowners prevent foreclosure, find mortgages for home sales and locate financing for building renovations.
The Midtown branch of the Michigan Lending Solutions, Midtown Lending Solutions, is based in Midtown Detroit Inc's Co-Lab space on Woodward. One of Midtown Lending Solutions is helping locate financing for condo sales.
"At least 85 percent of all of the condos in Detroit are non-warrantable," says David LeClerc, manager of lending operations of Michigan Lending Solutions
. He adds that non-warrantable means banks won't extend mortgages in those condo buildings because there aren't enough pre-sales or the condo association doesn't have enough cash reserves or to many units in the building are rentals, among a bevy of other disqualifiers.
Midtown Lending Solutions is looking to secure a $15 million loan fund that would be able to provide the financing for local condos sales. If enough condo sales are approved through this fund, that should help release pressure on the market and make it more attractive to traditional lenders. LeClerk believes the fund will be able to close 200 mortgage deals for local condos within the next two years.
"We believe we will be able to free up all of these condominiums within two years so they can leverage traditional financing," LeClerc says.
The Michigan Lending Solutions will also be able to help other homeowners and small developers find financing. That could be as complicated as nailing down a $140,000 loan to renovate a derelict building to financing a $5,000 loan so a homeowner can improve their house with minimal hassle and frustration.
Source: David LeClerc, manager of lending operations with Michigan Lending Solutions
Writer: Jon Zemke
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