Maryland Department of Housing and Community Development Loan Products Aimed at Revitalizing Communities Hit Hard by Blight and Foreclosures
Special Interest Rates Available Now for Buyers of Foreclosed Properties or Houses Needing Significant Repairs
CROWNSVILLE, MD (June 7, 2011) – Maryland Department of Housing and Community Development (DHCD) Secretary Raymond A. Skinner today announced the creation of two new loan products that will assist in revitalizing communities burdened with foreclosed and rundown properties. The Acquisition/Rehabilitation Mortgage Program offers eligible homebuyers the opportunity to purchase a single-family, one-unit home as a primary residence and obtain funds for needed repairs and renovations at the same time. The department’s other new loan program, Homeward Bound, allows eligible buyers of any foreclosed or short sale property to obtain a mortgage at a lower rate. Both products are under the Maryland Mortgage Program umbrella, the state’s flagship mortgage assistance program which offers a variety of low-interest, fixed-rate mortgage loan options primarily targeted to first-time homebuyers.
"These programs are open windows of opportunity for families looking to purchase a new home," said DHCD Secretary Skinner. “The Acquisition/Rehabilitation and Homeward Bound programs are new financing solutions with very attractive interest rates that encourage homeownership while revitalizing communities. Since June is National Homeownership Month, we are particularly proud to be offering new homeownership programs this month."
Prospective homebuyers to the Acquisition/Rehabilitation Mortgage Program may apply for the program through a Maryland Mortgage Program participating lender. The acquisition cost is paid to the seller of the home at closing. An amount equal to the rehabilitation cost plus up to six months of mortgage payments is put into an escrow account at loan closing. Disbursements are made from the escrow account as repairs are completed by a licensed contractor.
Current interest rates for the Maryland Mortgage Program (MMP) range from 4.375% to 4.75% depending on the discount points paid by the borrower. With the Homeward Bound eligible program buyers of foreclosed and short sale properties will get an introductory ½ % discount off the current applicable MMP interest rate.
Based on current applicable MMP interest rates, this will allow interest rates as follows:
- 4.250% for a 0-point loan
- 4.125% for a 1-point loan
- 4.000% for a 2-point loan
- 3.875% for a 3-point loan
For more than 30 years, the Maryland Mortgage Program has provided Maryland’s families with reliable and flexible mortgage loans. All Maryland Mortgage Program loans come with a fixed amortizing term for 30-years. Program loans are administered by a network of more than 30 private lending institutions across the State. Potential homebuyers who participate in MMP also are eligible for an assortment of downpayment and closing cost assistance programs like the Downpayment and Settlement Expense Loan Program (DSELP) which offers up to $5,000 in assistance in the form of a zero percent deferred loan. MMP borrowers also may receive additional downpayment and closing cost assistance through several DHCD matching programs, including the employer matching program House Keys 4 Employees, the Builder/Developer Incentive Program, and the Community Partner Incentive Program.
For more information on the Maryland Mortgage Program, especially details on income and purchase price limits, please visit www.mmprogram.org or contact DHCD’s Community Development Administration at 410-514-7535 or by e-mail at SingleFamilyHousing@mdhousing.org.
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The Maryland Department of Housing and Community Development works with partners to finance housing opportunities and revitalize great places for Maryland citizens to live, work and prosper. To learn more about DHCD programs, log on to www.mdhousing.org.
News updates also are available by following DHCD on Twitter (www.twitter.com/MDHousing) and Facebook (www.facebook.com/marylandhousing).
For more information:
Director, Office of Communications and Marketing
Deputy Director, Office of Communications and Marketing