Remain Aware of Baltimore City Homeownership Incentive Programs

By: Raevyn Jones, Marketing Coordinator, NHS of Baltimore

Before people think that becoming a homeowner in Baltimore City is impossible, it is extremely important that they make themselves aware of the variety of incentives that the City of Baltimore offers for potential homebuyers. Each program has specific qualifications managed by different city departments or nonprofits.

The Community Development Block Grant

This program can give first-time homebuyers $5,000 towards down payment and settlement expenses. This program is beneficial because there is a combined amount of $11,000 in incentive money and a possible $8,000 tax credit.

Eligibility includes:

• First time homebuyers with a certificate from a city approved counseling agency
• Property must be located in Baltimore City
• The buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence
• Buyer must secure a HQS Home Inspection on the property
• There must not be any flaking, peeling, or chipping paint in or outside the home
• Contract of sale must be executed on or after 01/01/2010, contracts that have already gone to settlement do not qualify
• Closing on the property must occur within 90 days of the contract date
• Income limitations

Buying into Baltimore

This program is a joint project of the City of Baltimore and the Live Baltimore Home Center. Neighborhood tours are scheduled in the spring for the West side and the fall for the East side. The first 50 homebuyers that attend the trolley tour and complete a sales contract within 90 days of the fair receive a $3,000 award towards closing costs. Only homebuyers executing contracts of sale within 90 days of the Buying into Baltimore Home Buying fair and Neighborhood Tours.

Restrictions/Terms of Loan:
•Use a Fannie Mae or Freddie Mac approved lender with a mortgage loan that cannot exceed $417,000
•The buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence
•Borrower must attend the fair, get a ticket, and have ticket validated in at least four tour homes
•The home must be located in the designated region for that fair
•Contract must be signed after the event
•Loan is forgivable (20 percent per year) over 5 years for each year of occupancy

The Baltimore City Employee Homeownership Program

This program has been around for 11 years and is designed to assist employees of the City of Baltimore to become homeowners within the city limits. All employees of Baltimore city’s agencies and quasi-agencies who have been working for a minimum of six months are eligible. This program is beneficial as there is a $3,000 down payment and closing assistance with no annual income limits.

Restrictions/ Terms of Loan:

•The mortgage loan may not exceed $417,000
•The buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence
•Closing on the property must occur within 90 days of the contract date
•Only one city employee per household may receive assistance
•Loan is forgivable (20 percent per year) over 5 years for each year of occupancy
•Property must be located in an eligible neighborhood in Baltimore City. Ineligible neighborhoods are: Bellona-Gittings, Blythewood, Canton, Cedarcroft, Cross Keys, Evergreen, Federal Hill, Guilford, Hunting Ridge, Homeland, Homeland-Gallagher, Kernwood, Keswick, Lake Evesham, Loyola, Mount Washington, North Roland Park, Otterbein, Original Northwood, Roland Park, Rosebank, Sabina-Mattfeldt, Ten Hills, The Orchards, Tuscany-Canterbury, and Wyndhurst.

Baltimore City Live Near Your Work Program

This program is a partnership with participating employers and Baltimore City to persuade people to live near their place of employment. Employees of participating companies who are first time homebuyers are eligible. Participating employers reserve the right to develop additional eligibility requirements for their employers. Benefits from the program are a $2,000 minimum grant or conditional grant ($1,000 from City of Baltimore, and $1,000 from employer) to be used toward down payment and closing assistance with no annual income limits.

Restrictions:

•The buyer must contribute at least $1,000 towards purchase and must use the property as their primary residence
•Participating employers can develop additional restrictions such as eligible neighborhoods

Additional homeownership incentives include Baltimore's Housing Choice Voucher Homeownership Program, State Mortgage Programs and Homeownership Assistance, Baltimore City Tax Incentives, Federal Mortgage Programs and Homeownership Assistance, and Maryland Homestead Tax Credit. To find our more information about these incentives please visit http://www.baltimorehousing.org/ps_homeownership.asp .