Renovation / Rehabilitation Loan Products

• Acquisition / Rehabilitation Program

• Baltimore City Deferred Loan Program


• Baltimore City Lead Abatement Action Program (LAAP)


• Be SMART Home Complete
  


• Be Smart Home Energy Star
  


• HUD 203K Rehabilitation Loan Program
  
  
• Federal Home Loan Bank of Atlanta Accessibility 
  
  
• Federal Home Loan Bank of Atlanta Energy Efficiency/Weatherization


• Lead Elimination Action Program (LEAP)


• Maryland Housing Rehabilitation Program


• Maryland Lead Hazard Reduction Grant Program

• Neighborhood Housing Services of Baltimore (NHS) Home Improvement Loan


• OHEP: Weatherization Program


• SCOPE / Project 5000


• Senior Roof Repair Program


• Vacants to Value

Acquisition / Rehabilitation Program

What are the benefits?

This program offers eligible borrowers an Acquisition/Rehabilitation Mortgage to purchase a single-family, one-unit home as a primary residence and obtain funds for needed repairs and/or renovations at the same time.

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.
• Must meet all FHA 203(k) and CDA under Maryland Mortgage Program requirements.
• Property must be the homebuyer’s primary residence.
• 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. (Same as MMP)
• The maximum acquisition cost of the house is $417,000.

For more information:

Single Family Housing
Community Development Administration
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032-2023
410.514.7530
Toll Free (Maryland Only): 800.638.7781
Email: SingleFamilyHousing@mdhousing.org
Website: www.mmprogram.org

Baltimore City Deferred Loan Program

What are the benefits?

The Deferred Loan Program offers below market-rate rehabilitation loans for owner-occupied properties. Loans up to $10,000 are available to very low-income households. Typical repairs qualifying for this assistance include, but are not limited to: furnace, roof, electrical, and plumbing repair, and accessibility improvements for elderly/handicapped homeowners.

Structural repair promotes safe and adequate living conditions for all property residents. Maryland law requires compliance with health and building codes.

What do I need to know?

• The combined yearly household income for the homeowner must be less than 50% of the Baltimore City median income level.
• Eligible repairs can include accessibility improvements for elderly/handicapped homeowners.
• Eligible homes may not exceed 2 dwelling units, but can include condominiums.
• Eligible homes must be occupied by the owner.
• Application fees and closing costs can be included in the loan amount.

For more information:

Baltimore Housing

Office of Rehabilitation
417 E. Fayette Street, Suite 1125
Baltimore, MD 21202
Phone: 410.396.4151
Website: www.baltimorehousing.org/ps_rehab.asp

Baltimore City Lead Abatement Action Project (LAAP)

What are the benefits?

The Lead Abatement Action Project (LAAP) provides money to property owners to renovate residential or rental properties in Baltimore City to make these units lead safe. The program is specifically interested in creating lead-safe housing opportunities for low-income families with young children.

For homeowners, up to 100% of the cost of making your home lead safe may be covered.

For landlords, up to 80% of the cost of making a unit lead safe may be covered, with a maximum of $5,000 per unit.

What do I need to know?

• Landlords must agree to keep rents affordable for low– and middle-income tenants for at least five years.
• The program is specifically interested in creating lead-safe housing opportunities for low-income families with young children.
• The LAAP will develop a scope of work that is appropriate to the condition of the house. The scope will include window, floor, door, trim, wall, paint, exterior, and cleaning treatments.

For more information:

312 North Charles Street, Suite 400
Baltimore, MD 21201
Phone: 443.984.3934
Website: www.baltimorehealth.org or www.leadsafe.org

• Air infiltration reduction
• Insulation in the attic, floors, and walls
• Hot water system improvements
• Lighting retrofit
• Furnace cleaning/tuning and burner repair/replacement
• Health and safety items that improve energy efficiency

• Verification of income
• Credit score of 640 or greater
• Debt-to-income ratio of up to 50%

• Air Source Heat Pumps
• Central AC Systems
• Boilers (All Fuels)
• Water Heaters
• Refrigerators
• Ceiling Fans
• Programmable Thermostats
• Ventilating Fans
• Windows/Doors

• Verification of income
• Credit score of 640 or greater
• Debt-to-income ratio of up to 50%

Federal Home Loan Bank of Atlanta (FHLBA) Energy Efficiency/ Weatherization

What are the benefits?

Federal Home Loan Bank of Atlanta's Energy Efficiency/ Weatherization product provides up to $15,000 for weatherization and energy efficient improvements of an existing owner-occupied home. Eligible improvements include exterior doors, HVAC systems, insulation, water heaters, roof, windows, low-flow plumbing fixtures, and more.

What do I need to know? 

•  Maximum subsidy is $15,000 per borrower
• Home must be owner-occupied and used as the borrower's primary residence
• Borrower must have at least one year of ownership by a life estate or a full interest in the fee title          

For more information:

Federal Home Loan Bank of Atlanta
Community Investment Services
Phone: 1.800.536.9650 (option 3)
Website: http://corp.fhlbatl.com

Federal Home Loan Bank of Atlanta (FHLBA) Accessibility

What are the benefits?

Federal Home Loan Bank of Atlanta's Energy Efficiency/ Weatherization product provides up to $15,000 to pay for accessibility improvements of an existing owner-occupied home. Eligible improvements include exterior ramps and sidewalks, bathroom and kitchen renovations, door widening, floor replacement, and more.

What do I need to know? 

• Maximum subsidy is $15,000 per borrower
•  Home must be owner-occupied and used as the borrower's primary residence
•  Borrower must have at least one year of ownership by a life estate or a full interest in the fee title

For more information:

Website: http://corp.fhlbatl.com

HUD 203K Rehabilitation Loan Program

What are the benefits?

The Section 203(k) program is the Department of Housing and Urban Development's (HUD) primary program for the rehabilitation and repair of single family properties.

What do I need to know?

• The mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.
• The borrower can get just one mortgage loan, at a long-term fixed rate, to finance both the acquisition and the rehabilitation of the property.
• The property must be a one- to four-family dwelling.
• Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.
• Luxury items and improvements are not eligible as a cost rehabilitation.
• All health, safety and energy conservation items must be addressed prior to completing general home improvements.

For more information:

Department of Housing and Urban Development (HUD)
451 7th Street S.W.,
Washington, DC 20410
Telephone: 202.708.1112
TTY: 202.708.1455
Website: www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

Lead Elimination Action Project (LEAP)

What are the benefits?

This program provides free replacement windows and clearance testing for enrolled properties that meet risk reduction standards. LEAP is a matching grant program, so no direct cash assistance is available.

What do I need to know?

• Homeowners, landlords, and tenants are eligible.
• Property must be accepted into the program. Once accepted, a scope of work is developed.
• Property owner or tenant is responsible for completing the intial phase of the work.
• Property owners must meet risk reduction standards by removing chipping, flaking, or peeling paint; repairing any structural problems that cause paint flaking; making sure doors do not rub on lead-painted surfaces; and making all floors smooth and cleanable.

Once the risk reduction standards are met, the Coalition to End Childhood Lead Poisoning will install new windows and provide dust clearance testing free of charge.

For more information:

Coalition to End Childhood Lead Poisoning
2714 Hudson Street
Baltimore, MD 21224
Phone: 410.534.6447
Email: intake@leadsafe.org
Website: www.leadsafe.org

Maryland Housing Rehabilitation Program (MHRP)

What are the benefits?

MHRP is a state-wide program that offers below market-rate rehabilitation loans to correct health safety violations and major system deficiencies (HVAC, furnace, boilers, water heaters, etc.) on owner-occupied properties. Loans of up to 95% of the property value may be made available to eligible households. Interest rates will vary from 0% to 7%, depending on income levels.

What do I need to know?

• Loan terms may vary up to 20 years with deferred payments allowed for households below 50% of the state median income.
• All application fees and closing costs are included in the loan amount.
• The program is available to households earning below 80% of area median income levels.
• Eligible homes can include condominiums, but may not exceed 4 dwelling units. The owner must have title to the property and can assume new debt.
• Eligible homes must be occupied by the owner.

For more information:

Baltimore Housing
Office of Rehabilitation
417 E. Fayette Street, Suite 1125
Baltimore, MD 21202
Phone: 410.396.4151
Website: www.baltimorehousing.org/ps_rehab.asp

Maryland Lead Hazard Reduction Grant Program

What are the benefits?

The Lead Hazard Reduction Grant and Loan Program is sponsored by the Maryland Department of Housing and Community Development. It is a special program that provides funds to assist homeowners and landlords reduce the risk of lead poisoning and preserve the housing stock by reducing or eliminating lead-based paint hazards. The program is funded with State and federal funds. A loan or grant of up to $15,000 per home or apartment. The financial assistance provided (grant or loan) will be based on the applicant’s ability to repay.

What do I need to know?

• Primary homeowners and landlords of rental properties are both eligible for this program.
• There are no income limits.
• The work plan must fully address all of the lead hazards present in the project.

For more information:

Maryland Department of Housing and Community Development
Special Loans Programs
100 Community Place
Crownsville, Maryland 21032
Phone: 410.514.7565 or 800.492.7127
Website:www.dhcd.state.md.us/website/programs/lhrglp/Default.aspx or www.leadsafe.org

Neighborhood Housing Services of Baltimore (NHS) Home Improvement Loan

What are the benefits?

NHS of Baltimore offers a home improvement loan for low income Baltimore area residents, to assist with structural or appliance repair- such as roofing, plumbing, heating/air conditioning, window replacement, and energy efficiency, as well as other refurbishments.

What do I need to know?

• Primary homeowners can receive up to $80,000 with as little as 3% interest.
• Qualified applicants will have the option of full payment deferment while they continue to live in the home.
• Homeowner must reside at or below 80% of the Area Median Income ($45,500 for 1 person; $52,000 for 2 people; $58,500 for 3 people).

For more information:

Neighborhood Housing Services of Baltimore
819 Park Avenue
Baltimore, Maryland 21201
Phone: 410.327.1200
Website: http://www.nhsbaltimore.org/services/rehab-lending.php

OHEP: Weatherization Program

What are the benefits?

The Weatherization Program is an energy conservation program that assists low-income homeowners in making their homes more energy efficient, comfortable, and safe. Energy efficient homes will see a reduction in utility bills over time.

The Weatherization Program provides a range of free services to qualified homeowners that include an energy audit, safety testing and repair of heating equipment, and the installation of weatherization treatments.Weatherization treatments that may be done in your home, based on your energy audit:

• Installation of attic insulation
• Air sealing your home with caulk, foam and weather-stripping
• Insulating your water heater tank with an insulation blanket
• Replacing incandescent light bulbs with compact fluorescent lights
• Installing low flow showerheads
• Providing a furnace/boiler clean and tune or repairs to the heating system

Each house is inspected after the weatherization work has been done to check for quality and completeness.

What do I need to know?

This program is open to any city resident who meets the OHEP income eligibility standards. To review the eligibility standards and/or apply for this program download the Weatherization Application Packet.

For more information:

Baltimore Housing
Office of Weatherization
2900 North Charles Street
Suite 1125
Baltimore, MD 21218
443-984-1066
www.baltimorehousing.org 

SCOPE / Project 5000

What are the benefits?

The SCOPE (Selling City Owned Properties Efficiently) Project is designed to create a simplified and cost effective process for putting vacant and underutilized City owned properties on the open market and into the hands of responsible buyers.

What do I need to know?

• Properties are selected by the city and offered to realtors who list them in the statewide Multiple Listing Service (MRIS).
• Buyers need to demonstrate financial capacity to fully redevelop the properties in order to be awarded and settle on a property.
• The cost estimates are based on rough square footage and supplied for feasibility purposes and may be subject to change upon further inspection of the properties.
• In most cases, offers are accepted on SCOPE properties for a pre-determined period of time, at which time they are are reviewed by the City.

For more information:

Baltimore Housing
Office of Real Property Disposition
Phone: 410.396.4109
Website: www.baltimorehousing.org/ps_developers_scope.asp

Senior Roof Repair Program

What are the benefits?

This program offered by the Baltimore Housing Office of Rehabilitation, provides loan funds to homeowners ages 62 and older, who need to repair roofing systems of owner-occupied properties. This forgivable loan provides an easement up to $5,000 for repairs. The loan amount is reduced 20% for each year of occupancy after the award is made. After five years of occupancy, the owner has no obligation to repay.

What do I need to know?

• The program is available to households earning below 50% of area median income levels.
• Homeowners must be 62 years of age, and have title to the property and provide copy of the deed.
• Eligible homes may not exceed 2 dwelling units.
• Eligible homes must be occupied by the owner.
• Homeowner must have current homeowners insurance on the dwelling.
• All application fees and closing costs are included in the loan amount.

For more information:

Baltimore Housing
Office of Rehabilitation
417 E. Fayette Street, Suite 1125
Baltimore, MD 21202
Phone: 410.396.4151
Website: www.baltimorehousing.org/ps_rehab.asp

Vacants to Value

What are the benefits?

A series of initiatives by Baltimore Housing to sell vacant property to homeowners. Property must be a city-designated vacant for at least one year. This includes City-owned property as well as privately-held homes that have been cited as vacant by Baltimore Housing.

• Vacants to Value Booster Program - As of July 1, 2011, Baltimore City announced the start of the Booster Program, which provides $10,000 in downpayment and closing cost assistance to the first 50 buyers of Vacants to Value properties in 16 eligible neighborhoods. Incentive is a 5-year forgivable loan. No income limit, Buyer does not have to be a first-time homebuyer. NOTE: If you are using the CityLIFT $15,000, you are eligible for a $5,000 Booster.
• Buying Into Baltimore - $5,000 is available to eligible buyers through the Buying into Baltimore Vacants to Value initiative. See the details for the Buying Into Baltimore incentive under the Downpayment & Closing Costs section above.
• Good Neighbors Incentive -This is an extension of the Baltimore City Employee Homeownership Program. $5,000 is available to City employees who buy Vacants to Value homes through the Good Neighbors Incentive. See the details for the Baltimore City Employee Homeownership Program under the Employer-Based Assistance section above.
• Live Near Your Work Program (LNYW) - The City will match participating employers up to $3,000 (total $6,000) when employees buy a Vacants to Value house. See the details for the LNYW program under the Employer-Based Assistance section above. Click here for a list of participating employers.
• Homeownership Assistance Program - Income eligible families may receive $5,000 in home buying assistance; buyers of Vacants to Value properties have a priority use of this program. See the details for the Homeownership Assistance program under the Downpayment & Closing Costs section above.
• Newly Constructed Dwelling Property Tax Credit - The first buyer of a newly constructed or substantially rehabilitated vacant house can receive a 50% reduction in property taxes in year one reducing to 10% reduction in year five. See details for this tax credit in the Homeowner Tax Incentives section below.
• Historic Tax Credits - See the Historic Tax Credits section below regarding historic tax credits that may apply to Vacants to Value Renovations in City or State historic districts.

What do I need to know?

• Property must be a city-designated vacant for at least one year. This includes City-owned property, as well as privately-held homes that have been cited by Baltimore Housing.
• By using a State of Maryland CDA mortgage, qualified buyers may be eligible for an additional $2,500 incentive as part of the Community Partners Incentive Program (CPIP). Read our description for details.
• Property must be the homebuyer’s primary residence.
• 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.

For more information:

Baltimore Housing
Phone: 410.396.4109
Website: www.baltimorehousing.org/vacants_to_value

Interested in buying and rehabbing a Vacant to Value home?

Live Baltimore's partner Harbor Development specializes in renovations of all sizes, contact them today!