Michigan based Comerica Bank has announced it will be investing $5M in a program that helps Detroit homeowners. Detroit Home Mortgage was a program set up by local banks and non-profit organizations to combat the problem with low appraisal values. The mortgage crisis of the late 2000's had a huge impact on Detroit's housing market, when property values plummeted.

One of the main issues for primary homebuyers trying to get a mortgage in Detroit is the gap in appraisal value. For example, even if a home is worth $100,000, neighboring properties which were sold as "bank owned" at a much lower value, will affect the comparable sales in that neighborhood. In order to bridge this gap, local banks came up with a special mortgage (split into two separate mortgages) at lower interest rates.

Among the local banks which participate in the program are Huntington, Independent, Flagstar, Chemical, and Liberty. The President of Comerica Bank, Michael Ritchie, says he has been inspired by the transformation of downtown Detroit over the last few years. However my making this investment he aims to "help push that revitalization out into the neighborhoods." As more and more banks offer lending to homeowners in Detroit, property values will continue to rise, meaning investors can start to cash in on capital appreciation. Check out the full story here.