Downpayment and Closing Cost Programs

Community Development Block Grant Homeownership Incentive Program

FUNDS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ARE BACK!

This homebuying incentive provides a forgivable downpayment and closing cost loan to first time homebuyers with family incomes of 80 percent or below the area median income.  (First time homebuyers are defined by federal standards as not having owned property for 3 years or more).

What are the benefits?
$5,000 is awarded as downpayment and closing assistance.  Award is structured as a 5-year loan, forgivable 20% each year. 

What else do I need to know?

• Contract of Sale must be executed on January 1, 2010 or later. Contracts that have already gone to settlement do not qualify.
• Property must be located in Baltimore City.
• Buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence.
• Buyer must attend homeownership counseling and obtain a pre-purchase counseling certificate.
• The buyer must secure an HQS (Housing Quality Standard) Home Inspection on the property.  (Qualified home inspectors can be found at www.ashi.org or www.nahi.org).
• The home must be free of any flaking, peeling or chipping paint surfaces.
• Closing on the property must occur within 90 days of the contract date.
• Household income cannot exceed the following amounts (2009):
  1 person $44,800
  2 person $51,200
  3 person $57,600
  4 person $64,000
  5 person $69,100
  6 person $74,250
  7 person $79,350
  8 person $84,500

For more information, contact:
Ms. Marva Allette
Baltimore Housing
Phone: 410.396.3124

Website: www.baltimorehousing.org

Buying into Baltimore

Buying Into Baltimore is a homebuying fair featuring four different neighborhood tours. The event is produced by the Live Baltimore and the $3,000 grant is provided by the City of Baltimore. There are two fairs, one for the West side in May and another for the East side in September.  The fairs provide homebuying education opportunities and introduce participants to the variety of Baltimore's neighborhoods and housing styles.

Through the City of Baltimore, a total of $300,000 is available for 100 new homebuyers. Fifty (50) individuals from each fair are eligible to receive a $3,000 homebuying award per fair. That means 50 awards will be awarded at Western Fair and 50 awards will be awarded at Eastern Fair. The $3,000 award is applied toward down-payment and closing costs.

Click here for more information.

Downpayment and Settlement Expense Loan Program

This program helps eligible borrowers who are purchasing a home with a Community Development Administration (CDA) mortgage by funding a portion of their closing costs.

What are the benefits?
This program awards up to $3,500 with a 0% interest rate (repayment of funds is triggered by sale, transfer or refinance of house).

What else do I need to know?

• Buyer must use a Community Development Administration (CDA) mortgage, and must therefore meet the CDA limits on income.
• Home purchase must be a primary residence in Baltimore City.
• Maximum Acquisition Costs: $525,091 (this is the limit for all CDA products in Baltimore City) 
• DSELP cannot be used in conjunction with either the MMP 2% or MMP 3% grants.
• Buyer must receive homeownership counseling.

For more information, contact:
Maryland Department of Housing & Community Development
Phone: 1.800.638.7781
Website: www.mmprogram.com

Federal Home Loan Bank of Atlanta First-time Homebuyer Program (FHP)

The First-time Homebuyer Program (FHP) provides matching funds for down-payment and closing-cost assistance to low- and moderate-income homebuyers.  The money is distributed to eligible homebuyers on a first-come, first-served basis.

What are the benefits?
Federal Home Loan Bank of Atlanta partners with member financial institutions to make FHP awards of up to $10,000 per household.

What else do I need to know?
The buyer must earn 80 percent or less of the area median income (adjusted for family size).
The buyer must contribute at least $500 in cash toward the purchase of the home. Buyers contributing more than $10,000 in cash funds are not eligible for FHP regardless of income.
The buyer must occupy the purchased home as his primary residence for five years and the home must be located in FHLBank Atlanta’s district.
The buyer must complete a homeownership education program and the member must certify that the buyer has completed the program. The program must address mortgage financing, creditworthiness, household budgeting, home maintenance, and avoidance of predatory lending.

Several area financial institutions participate in the First-time Homebuyer Program. Participating Live Baltimore members include 1st Mariner Bank,  MECU of Baltimore, Inc., and Carrollton Mortgage Services, Inc.

For more information, contact a participating lender or check out the Federal Home Loan Bank of Atlanta at www.fhlbatl.com .