Down Payment Assistance Programs for Baltimore County & Baltimore City

General Information

HARBEL Housing Partnership serves first-time homebuyers purchasing in either Baltimore County or Baltimore City. Buyers interested in using ANY assistance programs for a home purchase in Baltimore City or Baltimore County, must attend workshop(s) and counseling with an agency recognized by the jurisdiction where they plan to purchase.

HARBEL Housing accepts workshop reservations, BY PHONE ONLY, on a specific day each month. Check: http://www.harbel.org/housingpartnership.html for HARBEL’s reservation date.

Step 1       Attend a Home Buyer Workshop

Homebuyer workshops are held three times per month at various locations in our service area. No weekend workshops. Topics during the three-hour workshop: credit, asset building, the mortgage process, role of the agent, home inspection, and a review of the various assistance programs. Attendees will receive instructions regarding scheduling the pre-settlement workshop and receive the intake packet, with instructions for obtaining a counseling appointment.

Step 2          Attend a Pre-Settlement Workshop

After completing the homebuyer workshop buyers may register for the pre-settlement workshop. (A requirement for ALL purchases in Baltimore County and some of Baltimore City assistance programs.) The pre-settlement workshops are held several times a month at a variety of locations. No weekend workshops. Topics during the three-hour workshop: settlement process, property taxes, home maintenance, home improvement, refinancing, and preventing foreclosure.

Step 3     Completion of Intake Packet

The buyer(s) must complete HARBEL’s intake packet and make photocopies of all required documents. Intake packets and documents must be submitted to HARBEL for review by one of our counselors prior to scheduling a counseling appointment. No emails or faxes of intakes are accepted.

Step 4     Counseling

HARBEL provides pre-purchase counseling for homebuyers. Following counseling the homebuyer receives a written status report. HARBEL also provides credit counseling for persons interested in improving their credit status in order to purchase a home in the future.

Highlights of the Baltimore City Options

Visit http://www.baltimorehousing.ora/home center for details regarding all Baltimore City options buyers should verify that their mortgage lender participates in the City options they are interested in using.

Baltimore City’s CDBG: http://wvvw.baltimorehousing.org/home center or 410-396-3124.

Eligibility: All buyers must complete a homebuyer workshop, counseling and a CDBG application prior to submitting a contract offer.

Eligible households must be first-time homebuyers (may not have owned a home in the past three (3) years — no matter where. The buyer(s) will 1:e required to invest a minimum of $1,000 from their personal funds toward the purchase of the home. Eligible households must have household (all adults residing in the house) income at 80% or below the area median (effective 7/1/2018):

Household Size	1	2	3	4	5	6	7	8
Income Limit	50,350	$57,550	$64,750	$71,900	$77,700	$83,450	$89,200	$90,950

Loan Terms: Baltimore City’s Homeownership Program determines the amount of assistance available. The City CDBG is a forgivable loan with a five-year term, and will be reduced by 20% a year as long as the owner resides in the home as their principal residence. If the property is sold, rented, or refinanced during the first five years, a portion of the assistance must be paid. The lender will request the CDBG funds,

Baltimore City Employee Program: http://www.baltimorehousing.org or 410-396-3124

Eligible buyers must complete home buyer workshop and counseling from a city approved agency prior to submitting a contract offer. The buyer must be a city employee for a minimum of six months. There is an income limit. Only one city employee, per household, may receive assistance. The buyer’s minimum cash contribution is $1,000. The buyer must use an approved mortgage lender. The mortgage loan amount may not exceed $417,000. Baltimore City purchases only in certain eligible neighborhoods. A forgivable loan (up to $3,000) with a five-year term, reducing 20% for each year of occupancy. The buyer mortgage lender will request these funds for the buyer.

Buying in Baltimore Program: http://www.livebaltimore.com or 410-637-3750

Visit the website for Buying in Baltimore event dates and locations, buyer requirements, and amount of assistance available for Baltimore City purchases. Important: All buyers must attend homebuyer & pre-settlement workshops and receive counseling from a city approved agency prior to execution of a contract of sale.

Highlights of the Statewide Options

Federal Home Loan Bank of Atlanta’s First Time Home Buyer Program (FHP)

The amount of the subsidy and eligibly requirements (including household income guidelines) are determined by the Federal Home Loan Bank. The buyer’s household income may not exceed the 80% of area income as set by HUD; your lender will review the buyer’s income eligibility and inform the buyer of their required cash contribution match for the FHP funds. Funding is limited. The buyer’s first mortgage and the request for the FHP funds must be made by a participating FHLB member institution (bank, savings & loan, or credit union). The buyer is responsible for verifying their lender’s participation in this assistance program. To find a participating lender: http://corp.flilbaticom/find-member/ and for more information http://corp.fhlbatl.com/tiles/documents/first time homebuvers.pdf

State of Maryland’s CDA Mortgage & Down Payment Assistance (DPA) and Partner Match Programs

For complete details of Maryland CDA Mortgage, including participating lender list, interest rates, and information regarding the state’s settlement assistance, including requirements and loan terms: http://mmp.maryland.gov or call 1-800-638 7781.

DPA Income Guidelines: Check littp://mnip.maryland.gov for income guidelines based on purchase jurisdiction.

Participating Lenders: Check http://mmp.maryland.gov for list of participating mortage lenders.          

Buying in Baltimore County: Buyers must complete the homebuyer workshop, pre-settlement workshop and counseling, with an approved Baltimore County agency, prior to submitting a contract offer.

Buying in Baltimore City: Buyers must complete a homebuyer workshop and counseling before contract.                          

State Employee:

See: http://rnmp.maryland.gov/Pages/iVlaryland-Ernplovees.aspx

Homeownership for Individuals with Disabilities Program:

See http://www.dhed.state.md.uslwebsite/Programs/or 410-767-3660

Revised: 7/1/2018

 

 

 

Highlights of the BALTIMORE COUNTY “SELP”
Settlement Expense Loan Program $10,000 Loan for First Time Home Buyers

This program is an effort to encourage first time homebuyers to consider home ownership in existing residential communities in Baltimore County. The program is administered by nonprofit groups and is available in designated communities. Home Buyer’s Workshops and home ownership counseling are offered to potential homeowners. Settlement expense loans up to S10,000 are available to families whose income is at or below 80% of area median, adjusted for household size:

Household Size	I	2	3	4	5	6	7	8
Income Limit	$50,350	$57,550	$64,750	$71,900	$77,700	$83,450	$89,200	$90,950

BUYER ELIGIBILITY

Must be a resident of Baltimore County, employed, attend school, or agree to purchase in Baltimore County. (Example: DSELP assistance from the State of MD, State of MD Disability Loan Program, etc.) Property must be located in Baltimore County.

Buyer: Agrees to provide verifiable documentation to participate. Acceptable documents: State of MD issued Driver’s License or ID, employment ID, School transcript, signed contract of sale for home purchase and two utility statements.

1. Before signing a real estate contract, the buyer must complete Homebuyer Education Curriculum: Two Workshop(s) & Counseling with a Baltimore County affiliated Housing Counseling Agency *.
2. The buyer must meet Income Eligibility: 80% of area median, adjusted for household size.
3. First time homebuyer (cannot have previously owned a dwelling within the last 3 years). Exceptions can be granted for separation, divorce or death of spouse or prior ownership of documented substandard housing.
4. The buyer must qualify for a fixed rate mortgage with a Participating Lender. (See the Referral List)
5. The buyer’s post purchase liquid assets cannot exceed 25% of gross annual household income.
6. Gift Contributions may not exceed 3% of the sales price.
7. The buyer’s proposed post purchase housing and total debt ratios cannot exceed 31% and 43%, respectively, of the gross monthly household income.
8. The buyer must have cash equal to 5% of gross household income to contribute to purchase (see below).

PROPERTY CRITERIA

1. Existing dwelling that is owner occupied, occupied by buyer, or vacant. New construction is excluded.
2. Dwelling types: Single family detached, semi- detached, townhouse, and condominium unit,
3. Located within the mapped Community Conservation Area. This is generally described as the inner ring of suburban communities, but includes the growth areas of White Marsh and Owings Mills, and excludes rural areas.
4. Has had a satisfactory home inspection and has been certified as meeting the federal Housing Quality Standards (HQS) using an inspection firm from the County’s pre-qualified list. The HQS certification provides assurance to the County that the dwelling is free from hazardous defects and meets basic standards for safety and livability. All noted deficiencies must be corrected and verified prior to SELP Loan approval. The home inspection and HQS certification fee can be included as part of the buyer’s minimum cash contribution.
5. Down-payment, beyond the required minimum cash contribution specified, unless prohibited by the first mortgage lender.
6. The cost of repairs required to correct HQS identified deficiencies may be Included in the borrowers

maximum loan amount up to $2,500 when such repairs are done by a licensed contractor.

SELP LOAN TERMS

1. SELP Loan Amount: Minimum $1,000, Maximum $10,000.
2. Buyer’s minimum cash contribution: 5% of gross annual household income.
3. SELP Loan- Loan is deferred for seven (7) years (“Affordability Period “). Thereafter, the loan is forgiven after 7 years, unless sale, transfer of title or default occurs before the end of the (Affordability Period) 7 years.
4. Primary Loan- Loan principal is repayable upon the earlier to occur of sale, transfer, refinance, default on primary loan, or discontinuance of borrower occupancy in the home.
5. If the property is being purchased as leasehold, the ground rent must be redeemed using closing cost funds.

Note: Official SELP PROGRAM GUIDELINES & PROCEDURES adopted by the Baltimore County Office of Planning take precedence and clarify the details of the information presented here.

BALTIMORE COUNTY PARTICIPATING LENDERS
The lender list changes from lime to time please check with your lender and counselor to verify participation.

SunTrust Mortgage Inc. — Howard Bank — Columbia Bank — Rosedale Federal Savings & Loan First Home Mortgage (CDA Loan only) — Municipal Employees Credit Union (MECU) — Hamilton Bank M & T Bank — Fidelity Bank Mortgage — Gateway Mortgage Group — PNC

= EQUAL HOUSING LENDER = Baltimore County -Department of Planning-Housing Opportunities Program 105 W. Chesapeake Ave/Suite 201 Towson, MD 21204 410-887-6055; Fax: 410-853-1880

Revised April 4, 2018 (income limits revised: 6/15/2018 — updated annually) Lender list revised: l0/15/2018

 

Info courtesy Harbel Housing Inc

HARBEL Housing Partnership’s Services

HARBEL Community Center

5807 Harford Road, Baltimore Maryland 21214
Office Hours: Monday — Friday / 9:00 a.m. to 4:30 p.m.
Phone: 410-444-9152 — Fax: 410-444-9181
Email: harbelhousing@gmail.com
http://www.harbelorg/housingpartnership.html

 

 

As part of this process, your agent and lender has to be familiar with these programs in order for you to get all the benefits. If you are interested  in getting stated, contact me at 443-929-0703.