Flagstar Bancorp Inc. is investing $5 million toward the revitalization of the Old Redford neighborhood in northwest Detroit.

The Troy-based bank plans to put the funding toward the Affordable Housing Leverage Fund and the city's Strategic Neighborhood Fund, its CEO Alessandro DiNello said during a media event Monday at Crowell Community Center. DiNello was joined by Mayor Mike Duggan and other local dignitaries.

"We've gotta get these neighborhoods back on their feet," DiNello said. "You must have the public and the private working together."

Flagstar (NYSE: FBC) is among seven businesses contributing $5 million each toward the Strategic Neighborhood Fund, Duggan's ambitious campaign to re-energize commercial corridors throughout the city. The others are American Axle & Manufacturing, Blue Cross Blue Shield of Michigan, Chemical Bank, Fifth Third Bank, Huntington Bank and the Penske Corp.

The Grand River Northwest neighborhood, which includes Old Redford, is among the initial seven areas in the city to be targeted by the SNF. They were selected because of good nearby housing stock and commercial corridors, according to the city.

DiNello said Flagstar's $5 million commitment is over five years and yet to be distributed. What specifically the funds would be put toward will be decided by the city after a community engagement period, but DiNello said housing is a critical need.

"Things need to be cleaned up and we need to help (residents) get into home ownership," he said.

The bank is also rolling out its new Destination Home mortgage for potential homeowners in the area, said Kristy Fercho, president of mortgage at Flagstar. Detroit residents in certain areas outlined by the Community Reinvestment Act are eligible for no down payment in purchases of one- and two-unit homes, condos and planned unit developments. Participants must have a credit score of at least 600 to be eligible.

Fercho said she's not sure how many people will participate in the program, but there is no cap.

"However many we can, really," she said. "We want it to be wildly successful."

SNF, managed through Invest Detroit, funds community-driven projects in four specific areas — park improvements, streetscape improvements, commercial corridor development and affordable single-family home stabilization. AHLF, managed through Local Initiatives Support Corporation Detroit, is a tool to support the creation and maintenance of affordable housing in neighborhoods throughout Detroit.

The neighborhood revitalization effort is the result of a public-private-philanthropic partnership with a total fundraising goal of $130 million for SNF and $250 million for AHLF. The city committed $50 million toward the SNF and Duggan said he is about halfway to his goal of raising $100 million in private donations for it.