Home Purchase Loans

Good Neighbor Next Door (Teacher Next Door / Officer Next Door)

Law enforcement officers, pre-Kindergarten through 12th grade teachers, and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door (GNND) Sales Program.

Key Points:

• HUD offers a substantial incentive in the form of a discount of 50% from the list price of a home.
• Purchaser 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 purchasers do not need to be first-time homebuyers, but cannot own any other real estate at time of sales offer.
• Eligible purchasers must be employed full-time in one of the above employment sectors, and must be employed by the government where the home is located.

Check the listings for available Baltimore City properties at www.hud.gov/homes/index.cfm

For more information, contact:
HomeSource (HUD homes management source)
Phone: 866.483.1872
Department of Housing and Urban Development
Website: www.hud.gov

Healthy Neighborhoods, Inc. (HNI)

The purpose of this nonprofit organization 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. For their loan products regarding renovation, please see the Renovation / Rehabilitation Loan Products page.

HNI First Mortgage Loan

This product is available to eligible borrowers purchasing formerly vacant homes in Belair-Edison which are being developed by St. Ambrose Housing Aid Center or formerly vacant homes on target blocks in Patterson Park being developed by the Patterson Park CDC.
Key points:

• The maximum aggregate loan amount will be limited to 100% of appraised value of the property plus closing costs less a 3% investment by the borrower.
• The permanent loan interest rate will be 100 basis points (1 percentage point) below the 60-day Fannie Mae rate.
• The neighborhood association may charge a non-refundable screening fee. In addition, the borrower will pay 1.5 point as a loan origination fee, plus all customary loan closing costs. These fees and customary loan closing costs may be included in the loan if the borrower has met the required cash contribution and loan amount does not exceed maximum program loan to value.
• Purchasers must intend to be owner-occupants.
• Purchasers must be referred by the neighborhood organization (Belair-Edison Neighborhoods, Inc. or Patterson Park CDC) that has pre-screened the borrower and explained the loan process.
• Purchasers must invest at least 3% of the purchase price from their own funds.
• The maximum loan term is 30 years.

More information about this loan product is available at www.healthyneighborhoods.org 

HNI Purchase/Rehabilitation Loan

This product is available to new home buyers on target blocks in the neighborhoods who will make improvements to the property in conjunction with the purchase.
Key Points:

• Purchasers must intend to be owner-occupants.
• Purchasers must be referred by the neighborhood organization that has pre-screened the borrower and explained the loan process.
• Purchasers can borrow up to 120% of the after-rehab value of the house. The ability to borrow more than the value of the house is unique to Healthy Neighborhoods.
• The interest rate for this loan is a fixed rate of 100 basis points (1 percentage point) less than the Fannie Mae 60 day rate.
• The maximum loan term is 30 years. The construction term will be 12 months, or longer if mutually agreeable to all parties.
• The neighborhood association may charge a small application fee. In addition, standard closing costs and a 1.5 point origination fee apply. There is no mortgage insurance required.
• Loan payments must comprise no more than 30% of your total monthly income. Your total monthly debt must make up no more than 40% of your monthly income.

More information about this loan product is available at www.healthyneighborhoods.org

To take advantage of Healthy Neighborhood products, the borrower must occupy a property in one of the target blocks of each participating neighborhood. Target blocks can be identified by a participating neighborhood organization. Residents interested a Healthy Neighborhoods loan product must then present their contract of sale and plans to their neighborhood organization (participating neighborhoods and contact information listed below). The neighborhood association will pre-screen the applicant for credit worthiness and make a referral to a Healthy Neighborhoods construction specialist, who will certify that the contractor's estimate is fair and the renovations are practical. The neighborhood association will then refer the client to Bradford Bank for final loan approval, contingent upon meeting the eligibility requirements.

For more information contact:
Healthy Neighborhoods, Inc.
Phone: 410.332.0387
Website: www.healthyneighborhoods.org

Participating Neighborhoods:

Bayview
Belair-Edison
Bridgeview/Greenlawn
Brooklyn
Coldstream Homestead Montebello
Coppin Heights
Curtis Bay
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

Homeownership for Individuals with Disabilities Program

This homebuying mortgage program is offered through the Maryland Department of Housing and Community Development (DHCD).
Key Points:

• At least one borrower must be disabled and will be required to provide a "Certificate of Disability".
• Homeownership counseling prior to executing a contract of sale is required.
• This loan has a 40 year mortgage term and the borrower must contribute a 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 contact:

Single Family Housing
Community Development Administration
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032-2023
Phone: 410.514.7530
Toll Free (Maryland only): 800.638.7781
Website: www.dhcd.state.md.us/website/programs/hidp/Default.aspx

Housing Choice Voucher Homeownership Program

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.
Key Points:

• The buyer must participate in the Housing Choice Voucher Program for at least a year.
• The buyer must be a first time home buyer.
• The buyer must demonstrate at least one year of continuous full time employment (minimal of 30hrs a week).
• The buyer cannot owe money to HABC.
• The buyer must complete homeownership counseling.
• The buyer must contribute a minimum of 3% of sales price (1% from personal funds) toward the purchase.

For more information, contact:

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.

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.

For more information, contact:

Neighborhoord 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)

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.
Key points:

• The buyer must complete homeownership counseling with an approved agency prior to writing a contract.
• 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 $102,840. The maximum eligible income for a household of 3 or more persons is $119,980.
• The maximum acquisition cost of the house 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 our 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:

1st Mariner Bank

Bank of America

BB&T Mortgage

Carrollton Mortgage Services, Inc.

M&T Bank

PrimeLending

Prospect Mortgage

Wells Fargo Home Mortgage

For more information contact:

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

Healthy Neighborhoods, Inc. Direct Purchase Program

The Direct Purchase Program offers special forgivable loans to committed buyers in select areas in seven great neighborhoods in Baltimore City. This funding, provided by a federally-funded effort called Neighborhood Stabilization Program 2 (or NSP2), is used to assist buyers in purchasing foreclosed, short sale, or vacant/abandoned properties.

Key Eligibility Points:

• Eligible borrowers must be purchasing a property to be used as their primary residence.
• Eligible borrowers must complete 8 hours of housing counseling.
• The maximum combined yearly household income must be less than 120% of the Area Median Income (AMI).

• Property must be located in one of the 12 eligible census tracts in 7 city neighborhoods (Belair-Edison, Reservoir Hill, Barclay/Old Goucher, Patterson Park/McElderry Park, Ednor Gardens-Lakeside, Better Waverly, and Coldstream Homestead Montebello).
• Property may contain 1 to 4 zoned residential units, provided that one of those units be occupied by the owner.
• Property must be foreclosed or abandoned.
  

Key Benefits:

• $25,000 forgivable loan to help defray the costs of the purchase or renovation. Subsidies of $100,000 or more may be available for homes in Reservoir Hill.
• 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.

How Do I Start?
If you would like more information about this program, please contact the Healthy Neighborhoods Direct Purchase Program at directpurchase@healthyneighborhoods.org or 410-332-0387 x 154.

Healthy Neighborhoods recommends using the services of a real estate agent for your home purchase. Visit our Real Estate Professional profiles at www.livebaltimore.com/resources/businesspartners/realestateprofessionals/ to find an agent with experience in Baltimore City.