Detroit hasn’t seen a housing market boom like this for quite some time. Home sales are up, and while prices are creeping up, too, the majority of neighborhoods have many affordable homes. Whether you’re ready to buy or just starting to think about it, stay informed with our guide to popular neighborhoods and the best mortgage companies in Detroit to help finance your investment.
Everyone deserves to make thoughtful, informed purchase decisions. The local guides provided on this website are free for consumers. WXYZ may receive compensation from our partners. Learn more.
Now is a great time to buy a house in Detroit. With more than 200 neighborhoods, the Detroit housing market has options for every budget. The downtown core and surrounding neighborhoods have some of the best houses on the market right now, with median values between $300,000 to $730,000. A few scattered high-end neighborhoods have even nicer homes with prices to match.
The Midtown and Downtown area lofts and condos are wildly popular, but are too pricey for many buyers. The price range in those areas isn’t the norm for Detroit, where the majority of neighborhoods are classified as up-and-coming or high-value for long-term investment.
Three bedroom homes in up-and-coming neighborhoods have a median value of $166,000, which is about 12 percent less than the national average of $188,000.
In investment neighborhoods, median price for a fully-renovated home of the same size is $69,333, a whopping 63 percent less than the national average. These neighborhoods also have a large amount of even cheaper homes, perfect for someone who enjoys renovations or has ever dreamed of flipping a house.
The best neighborhoods for first-time home buyers looking to move to the city are (from most expensive to least): Lafayette Park, East English Village, Bagley and North End. All four areas have rising home values and are popular among current residents and prospective buyers.
If you’re serious about buying a home, the first thing to do is check your credit score and get pre-approved for a mortgage loan. Quicken Loans, headquartered downtown, is the metro Detroit area’s most popular mortgage lender.
Mortgages in Detroit are mostly conventional loans—with three to 20 percent of the purchase price up-front—and FHA loans, which are backed by the Federal Housing Administration and make it possible for people with not-so-great credit to obtain a mortgage. VA loans (for veterans) and USDA agricultural land loans (in eligible rural areas) are also popular with first-time homebuyers in Michigan.
Customers say AmeriSave has one of the easiest and most transparent application processes. Reviews note helpful loan officers, a wide variety of financing options, great technology and quick turn-around times as some of the best things about working with this mortgage lender.
Headquartered in Detroit and one of the area’s largest employers and developers, Quicken Loans is the first-stop for many Detroiters when comparing lenders. Quicken specializes in conventional and FHA loans, but has a variety of other options. Customer reviews have two trends: five stars or one star, with an average rating of four stars.
Detroit Home Mortgage
Detroit Home Mortgage is as close to borrowing from a non-profit as possible, with their focus on revitalizing Detroit’s neighborhoods and practice of only lending to people buying homes within the city. They are known for lending up to $75,000 more than the appraised value to encourage home improvements and renovations.
This Grand Rapids mortgage company offers competitive rates and loan options to homebuyers throughout Southeast Michigan. They employ agents with in-depth knowledge about the Detroit marketplace and have several Detroit home loan programs. The terms “it was a pleasure working with” and “best experience” frequently appear in online reviews.
Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.
Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.