Home Purchase Loans
Direct Purchase Program
What are the benefits?
Homebuyers can receive up to $25,000 as a forgivable loan to help defray the costs of the purchase or renovation of a qualifying home.
What do I need to know?
- The property must be located in one of the eligible census tracts. Click one of the following neighborhoods to see a map of the eligible census tracts:
Barclay/Old Goucher
Belair-Edison
Ednor Gardens, Better Waverly, Coldstream Homestead Montebello
Reservoir Hill
Patterson Park, Patterson Place, McElderry Park - The household income of the borrower must be less than 120% of Area Median Income (AMI). Click here to view a chart of the 2011 income limits.
- Funds can be used for closing costs, to pay down the mortgage principal, or for renovation.
- Purchase price will be supported by an appraisal, and purchase will be at least 1% below appraised value.
- Additional funds may be available in select circumstances.
- Homebuyer must earn their Homeownership Counseling Certificate from a City-approved counseling agency prior to writing a sales contract. Click here for a list of counseling agencies.
- Qualifying properties are foreclosed, short sale, or abandoned properties
- Property must be the homebuyer’s primary residence and can contain 1 to 4 zoned residential units.
For more information:
Healthy Neighborhoods Direct Purchase Program
Rahn Barnes
2 East Read St.
Baltimore, MD 21202
Phone: 410.332.0387 x154
email:rbarnes@healthyneighborhoods.org
Website: www.healthyneighborhoods.org/buyandrenovate/dollars_for_foreclosures.aspx
Good Neighbor Next Door (Teacher Next Door / Officer Next Door)
What are the benefits?
Law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door (GNND) Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your primary residence.
What do I need to know?
- HUD offers a substantial incentive in the form of a discount of 50% off the list price of a property.
- Homebuyer must commit to living in the property for 36 months as a primary residence.
- Eligible single-family homes are listed exclusively for sale through the GNND program, and are in HUD-designated neighborhoods in need of economic and community development.
- Eligible homebuyers do not need to be first-time homebuyers, but cannot own any other real estate at time of sales offer.
- Eligible homebuyers must be employed full-time and must be employed by the government where the home is located.
For more information:
HomeSource (HUD homes management source)
Phone: 410.962.2520
Department of Housing and Urban Development
Website: www.hud.gov
Healthy Neighborhoods, Inc. (HNI) Purchase/Rehabilitation Loan
The purpose of Healthy Neighborhoods, Inc. is to help strong but undervalued neighborhoods in Baltimore City increase home values, market their communities, create high standards for property improvement, and forge strong connections among neighbors. To help stimulate the purchase and renovation of homes in the "Healthy Neighborhoods," ten local banks agreed to establish a large loan pool, and develop several loan products.
What are the benefits?
This loan is available to new homebuyers who will make improvements to the property in conjunction with the purchase. The property must be on a Healthy Neighborhoods Target Block. Click here for a list of the Target Blocks eligible for this loan.
What do I need to know?
- Eligible borrowers must use this loan to make improvements to the property in conjunction with the purchase.
- The loan carries a fixed interest rate that's always 1% below the 60-day Fannie Mae rate but in no event less than 4%.
- After contributing 3% of the purchase price from their own funds, homebuyers may borrow the balance of funds needed to buy and renovate the home, as much as 120% of the after-rehabilitation appraisal of the property.
- No private mortgage insurance is required.
- Design assistance from an architectural firm is available at no cost to help buyers plan renovations and review contractor proposals.
- Property must be the homebuyer’s primary residence.
- Homebuyers interested a Healthy Neighborhoods loan product must fill out a pre-application form. This form will determine what type of loan you would like and the amount you would like to borrow. Completing this form does not guarantee a loan.
Participating Neighborhoods:
Bayview
Belair-Edison
Bridgeview/Greenlawn
Coldstream Homestead Montebello
Coppin Heights
Cylburn
Edmondson Village
Garwyn Oaks
Glen
Greater Homewood (Waverly, Better Waverly, Remington, Ednor Gardens-Lakeside, Charles Village)
Greater Mondawmin (Mondawmin, Parkview/Woodbrook, Liberty Square, Panway/Braddish Avenue)
Greektown
Hanlon
Highlandtown
Howard Park
Levindale
Midtown (Midtown-Belvedere, Mount Vernon, Charles North, Seton Hill, Madison Park)
Neighborhoods of Greater Lauraville (Lauraville, Waltherson, Arcadia, Hamilton Hills, Moravia-Walther, Morgan Park, Beverly Hills)
Patterson Park
Patterson Place
Reservoir Hill
For more information:
Healthy Neighborhoods Purchase/Rehabillitation Loan
2 East Read St.
Baltimore, MD 21202
Phone: 410.332.0387
email: info@healthyneighborhoods.org
Website: www.healthyneighborhoods.org
Homeownership for Individuals with Disabilities Program
What are the benefits?
The Homeownership for Individuals with Disabilities Program provides low-interest mortgage loans to eligible disabled homebuyers and homebuyers with a disabled son or daughter.
What do I need to know?
- One of the borrowers OR a son or daughter (regardless of age; who resides with one of the borrowers and is cared for principally by one of the borrowers) of one of the borrowers must have a physical or mental impairment that substantially limits one or more major life activities (for example, hearing, seeing, speaking, sitting, standing, walking, concentrating, or performing manual tasks). The definition does not include a person whose disability is based solely on any drug or alcohol dependence.
- A "Certificate of Disability" completed by a health, mental health, or disability professional is required.
- All borrowers must meet program eligibility guidelines and the loan must conform to all underwriting criteria.
- Homebuyer must earn their Homeownership Counseling Certificate from a City-approved counseling agency prior to writing a sales contract. Click here for a list of counseling agencies.
- This loan has a 40 year mortgage term and the borrower must contribute a minimum of $500 cash.
- The annual percentage rate of the loan varies based on income and affordability.
- The maximum combined yearly household income in Baltimore City is $81,700.
- The maximum purchase price in Baltimore City is $300,000.
For more information:
Single Family Housing
Community Development Administration
Maryland Department of Housing and Community Development
Robert Bartolini
100 Community Place
Crownsville, MD 21032-2023
Phone: 410.514.7530
Toll Free (Maryland only): 800.638.7781
Email: SingleFamilyHousing@dhcd.state.md.us
Website: www.dhcd.state.md.us/website/programs/hidp/Default.aspx
Housing Choice Voucher Homeownership Program
What are the benefits?
The Housing Choice Voucher Program is a federally funded, locally administered rental assistance program that helps low to moderate-income families, the elderly and the disabled purchase decent, safe housing in the private market. The participant is free to choose any housing type that meets the requirements of the program.
What do I need to know?
- Must participate in the Housing Choice Voucher Program for at least a year.
- Must be a first time homebuyer.
- Demonstrate at least one year of continuous full time employment (minimal of 30hrs a week).
- The homebuyer cannot owe money to HABC.
- Must contribute a minimum of 3% of sales price (1% from personal funds) toward the purchase.
- Homebuyer must earn their Homeownership Counseling Certificate from a City-approved counseling agency prior to writing a sales contract. Click here for a list of counseling agencies.
- Must ratify a sales contract within 120 days and must settle within 180 days
- Must obtain a mortgage from a lender
- Property must be a single family home
- Must pass both a HQS and Private Home Inspection
- No Housing Quality Standard (HQS) violations within the last year
- No lease violations within the last 3 years
For more information:
Ms. Tonya Small
HABC Homeownership Coordinator
417 E. Fayette Street, Suite 1125
Baltimore, MD 21202
Phone: 410.396.4175
Website: www.baltimorehousing.org
Neighborhood Housing Services of Baltimore, Inc.
What are the benefits?
This non-profit organization not only provides homeownership counseling to Baltimore City homebuyers, but they also offer several loan products for first-time homebuyers. Their "Emerging Market," "My Community," and "Save Home" mortgage products offer low interest rates and a minimum of $500 contribution from the buyer. Homeownership counseling is required for all loan products.
Emerging Market and My Community Loans
- Borrowers must be a resident of the Baltimore region.
- Must be first-time homebuyers, or have not previously owned a home for at least 3 years.
- Must have a minimum credit score of 580.
State of Maryland's 'More House 4 Less' Mortgage
- Must be a resident of the Baltimore region.
- Must be first-time homebuyer, or have not previously owned a home for at least 3 years.
- Borrowers will get a low, fixed rate mortgage backed by the State of Maryland Community Development Administration.
- Borrower must earn 80%, or below, of the Area Median Income (AMI) to be eligible for full down-payment and closing cost assistance through grants as much as 3% of the total cost of the home.
Save Home Mortgage
- Must be a resident of the Baltimore region.
- Must be first-time homebuyers, or have not previously owned a home for at least 3 years.
- Also applies to current homeowners in need of refinancing options.
- Must have a minimum credit score of 580.
For more information:
Neighborhood Housing Services of Baltimore, Inc. (NHS)
819 Park Avenue
Baltimore, MD 21201
Phone: 410.327.1200
Website: www.nhsbaltimore.org
State of Maryland Mortgage Program (CDA)
What are the benefits?
All Community Development Administration (CDA) mortgage products have low, fixed interest rates and are available with downpayment and closing cost assistance. They offer a 30-year fixed mortgage loan and a 40-year fixed mortgage loan.
What do I need to know?
- Homebuyer must earn their Homeownership Counseling Certificate from a City-approved counseling agency prior to writing a sales contract. Click here for a list of counseling agencies.
- In Baltimore City, the buyer does NOT have to be a first-time homebuyer.
- The maximum eligible income for a household of 1 or 2 persons is $105,720. The maximum eligible income for a household of 3 or more persons is $123,340.
- The maximum acquisition cost of the property is $525,091 in Baltimore City.
- For the most up-to-date interest rates for these products, visit the CDA website.
- Downpayment assistance is available: see the DSELP program, and the House Keys / Smart Keys 4 Employees programs on downpayment and closing cost programs page and our employer-based assistance programs page. For a complete list of approved CDA lenders, click here.
These Live Baltimore Business Partners are approved by the CDA:
For more information:
Single Family Housing
Community Development Administration
Maryland Department of Housing and Community Development
Phone: 410.514.7530
Toll Free (Maryland only): 800.638.7781
Website: www.mmprogram.com
