Loan Programs for Purchase of Home

Good Neighbour Next Door/Officer next door/Teacher next door loans

Even as they become owners of their homes through the sales programs under the Good Neighbour Next Door or GNND, fire-fighters, teachers from pre-kindergarten to 12th grade, law enforcement officers as well as emergency medical technicians can contribute in a significant manner towards revitalization of their community.

Important Features of the GNND programs:

For detailed information on Baltimore City properties listing, contact
www.hud.gov/homes/index.cfm

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

Healthy Neighbourhoods, Inc. (HNI)

This is a program that helps increase the value of homes in neighbourhoods around Baltimore City that are under-valued. This is a non-profit organization that helps these neighbourhoods create higher standards for improvement of property, market their community in an effective manner and create a strong connection network among various neighbourhoods. A variety of loan products are developed and a huge loan pool has been established with the help of at least ten local banks in order to promote renovation and purchase of homes in these 'healthy neighborhoods'.

For more details on this scheme, visit Renovation / Rehabilitation Loan Products page.

HNI First Mortgage Loan

If you are a first time home buyer looking to buy a vacant home in CDC, Patterson Park developed Patterson Park target blocks or a vacant home developed by the St. Ambrose Housing Aid Center in Belair Edison; you are eligible to avail of a loan product under the HNI First Mortgage scheme.

Eligibility:

• You are eligible for a loan amount that is the complete value of the property appraised including closing costs if borrower invests 3% of the appraised value.
• This loan offers an affordable rate of interest that is one percent lesser than the 60-day rate offered by Fannie Mae.
• As a borrower, you have to also pay customary closing costs, loan origination fee which amounts to 1.5 points and a screening fee charged by the neighbourhood association that is not refundable.
• If the value of the loan is not more than the maximum loan offered by the program, it is possible to include the above fees in the loan itself provided all other eligibility conditions are met by the borrower.
• It is essential for borrowers to purchase property to be used as their primary residence.
• After explaining the loan process and pre-screening the borrower, they must be recommended for the scheme by Patterson Park CDC or the Belair-Edison Neighborhoods Inc.
• Loan term is offered at a maximum of 30 years.

You can get more information on this loan offer at www.healthyneighborhoods.org

HNI Purchase/Rehabilitation Loan

If you are a home buyer looking to invest and improve on neighbourhood properties offered on target blocks, you are eligible for this loan product.

Important points:

• You must use the property purchased through this scheme as a primary residence.
• You must have been screened by the neighbourhood organization that has also explained the loan process to you.
• As a purchaser, you are eligible for at least 120% of the value of the property after rehabilitation.
• Rate of interest is 1% lesser than the Fannie Mae rate for 60 days.
• Upon mutual agreement among concerned parties, construction will be completed within 12 months and loan is offered for a maximum of 30 years.
• You need not opt for mortgage insurance. However, you may have to pay other fees including 1.5 point origination fee, standard closing costs and an application fee charged by the neighborhood association.
• Your repayment must not exceed 30% of your monthly earning.

For detailed information on this product, visit www.healthyneighborhoods.org

In order to benefit from the Healthy Neighborhood products, it is essential picking a property from the target blocks identified by one of the neighborhood organizations. After presenting your sale contract and plan to the organization you will be screened for credit worthiness and referred to the construction specialist. After determining if the estimate is fair and renovation plans are practical, you will be sent for final approval of loan to the Bradford Bank based on your other eligibility standard.

More information can be found at: www.healthyneighborhoods.org

Here is a list of neighbourhoods participating in this program:

Brooklyn
Bridgeview/Greenlawn
Belair-Edison
Bayview
Cylburn
Curtis Bay
Coppin Heights
Charles Village
Ednor Gardens-Lakeside
Glen
Garwyn Oaks
Howard Park
Highland town
Hanlon
Levindale
Mid-Town (Charles North/Station North District, Madison Park, Bolton Hill and Mount Vernon)
Montebello
Mondawmin
Neighborhoods of Greater Lauraville (Lauraville, Moravia-Walther, Arcadia and Waltherson)
Reservoir Hill
Remington
Patterson Park
Waverly and Better Waverly
Seton Hill

Homeownership for Individuals with Disabilities Program

DHCD or Maryland Department of Housing and Community Development offer a mortgage program for home buyers.

Eligibility requirements:

• A "Certificate of Disability" must be provided by the disabled borrower.
• Before contract sale is executed, it is essential attending a home ownership counseling.
• With a contribution of at least $500 by cash by the borrower, the loan tenure is offered for a maximum of 40 years.
• Affordability and income are the criteria based on which the rate of interest for the loan is determined.
• Residents of Baltimore City must earn at the most $81,700 in a combined manner to be eligible for this loan.
• Purchase price of the property must be a maximum of $300,000.

For detailed information on this product contact:
www.dhcd.state.md.us/Website/programs/hidp/hidp.aspx

Housing Choice Voucher Homeownership Program

This loan program is funded federally. This rental assistance program is administered locally and is a great help for the moderate to low income families, disabled and the elderly who are looking for safe and decent housing in the private market. As a participant, you can choose any type of housing which meets the eligibility conditions of the program.

In order to be eligible for this program:

• As a buyer, you must be a participant of the Choice Voucher program for at least one year.
• You must be a first time buyer of home.
• You must have a record of at least one year's full time employment.
• You must not be indebted to other programs such as the HABC.
• You must have a completion certificate from home ownership counseling.
• A contribution of three percent of the sale value, one percent of which can be from personal funds, must be made by the buyer towards the property purchase.

Detailed information can be found at www.baltimorehousing.org

Neighborhood Housing Services of Baltimore, Inc.

Apart from a variety of loan programs for those buying their homes for the first time, this non-profit organization also offers home ownership counselling programs for those residing in Baltimore City. With a $500 contribution from the buyer, this organization offers highly affordable, low interest rate products such as the 'Save Home' mortgage, 'My Community' mortgage and 'Emerging Market' the eligibility criteria for which requires you to have completed home ownership counselling.

More detailed information can be had at: www.nhsbaltimore.org

State of Maryland Mortgage Program (CDA)

There are various mortgage products offered by CDA or Community Development Administration at affordable rates of interest. They offer borrowers assistance with closing costs and down payment. Loans schemes include the 30 year fixed mortgage and 40 year fixed mortgage.

Eligibility requirements:

• As a borrower, you must attend a good home ownership counselling with an agency that is approved by the government. This must be completed before the contract is written.
• It is not necessary for you, as a resident of Baltimore City to be a first time home buyer.
• In order to be eligible under this scheme, your household income of one person must be $98,040. For a household with three or more persons, eligibility requires a maximum income of $114,380.
• In the city of Baltimore, acquisition cost must not exceed a maximum of $525,091.
• The CDA website offers you with in-depth and updated information, including the latest interest rates on these products.
• The closing cost programs and down payment page on the site provides vital information on various assistance programs including the MMP2%, MMP 3%, Smart Keys 4 Employees, House Keys 4 Employees and DSELP programs.

For detailed information on this visit www.mmprogram.com

Contact us to learn more about these programs.

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