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Loans, Grants, and Tax Incentives
What you need to know.

Maryland Mortgage Program Loans

The home must be the homebuyer’s primary residence.
Mortgage loan cannot exceed $525,901.
Conventional, FHA, VA, Refinance, REO, and RHS loans are available through the Maryland Mortgage Program (MMP).
Loans are below market-rate, 30-year fixed, and fully amortizing.
The maximum eligible income for a household of 1 or 2 persons is $107,400.
The maximum eligible income for a household of 3 or more persons is $125,300.
Loans can be used to buy Department of Housing and Community Development (DHCD) owned homes, also known as Real Estate Owned (REO) homes.
MMP loans, except the Refinance loan, may also be used with one or more downpayment and closing costs assistance programs:
• $5,000 from Downpayment Assistance (DPA, formerly DSELP);
• $2,500 from the Community Partners Incentive Program (CPIP);
Homebuyer must earn their Homeownership Counseling Certificate from a City-approved counseling agency before writing a sales contract.
Homebuyer may not own any other properties, including investment properties, at time of settlement.
This incentive may be used in addition to other incentives.
Homebuyer must use an approved lender.

Maryland Department of Housing and Community Development
(800) 756-0119 ext. 3


Department of Housing and Urban Development 203k Loan

The home must be the homebuyer’s primary residence.
The home may have up to 4 zoned residential units.
The mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.
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.
All health, safety and energy conservation items must be addressed prior to completing general home improvements.
This incentive may be used in addition to other incentives.
Homebuyer must use an approved lender.


Healthy Neighborhoods Purchase & Rehabilitation Loan

The home must be the homebuyer’s primary residence.
The home may have up to 4 zoned residential units.
Homebuyers can use this loan to purchase and rehab a home or refinance a home on a target block in a designated healthy neighborhood. The loan carries a fixed interest rate that’s always 1% to 4% below the 60-day Fannie Mae rate.
Homebuyers must contribute 3% of the purchase price from their own funds and may borrow the balance of funds needed to buy and renovate the home, up to 110% of the after-rehabilitation appraisal.
No private mortgage insurance is required.
Design assistance from an architectural firm is available at no cost to help buyers plan improvement and review contractor proposals.
Homebuyers interested a Healthy Neighborhoods loan product must fill out a pre-application form. This form will determine what type of loan you would like and the amount you would like to borrow.
A homeowner looking to refinance a home must have occupied it for a minimum of 3 years.
This incentive may be used in addition to other incentives.
Homebuyer must use an approved lender.
Homebuyer must use program-approved contractor for all work.

Healthy Neighborhoods, Inc.
(410) 332-0387


Johns Hopkins Live Near Your Work

If you are an employee at Hopkins, you may be eligible for downpayment and closing cost assistance up to $17,000. The following Healthy Neighborhoods qualify:  Remington, Better Waverly, Waverly, Bayview, Highlandtown, Patterson Park, Ednor Gardens, Charles North, Mount Vernon and Greenmount West.


Baltimore City Employee Homeownership Incentive

Employees of City agencies and quasi-city agencies, who are employed and paid by the Mayor and City Council of Baltimore City, may receive up to a $5,000 toward buying a home.
Homebuyer must be employed and paid by the Mayor and City Council of Baltimore City for minimum of six months.
The home must be the homebuyer’s primary residence.
Homebuyer must invest a minimum of $1,000 from personal resources.
Incentive may be used toward downpayment and closing costs.
Only one City employee per household may receive assistance.
The mortgage loan may not exceed $417,000.
Homebuyer must earn their Homeownership Counseling Certificate from a City-approved counseling agency before writing a sales contract.
Incentive is a five-year forgivable loan (Your balance is forgiven by 20% each year, at the end of five years you no longer have a balance).
This incentive may be used in addition to other incentives.
Incentive appears as a second lien on property until the balance is forgiven or repaid.

Baltimore City Housing
Tanika Owens
(410) 396-4606


Maryland Rehabilitation Tax Credits

The home must be the homebuyer’s primary residence.
Provides a Maryland income tax credit equal to 20% of the qualified capital costs expended in the rehabilitation of certified historic structures.
Homeowners may receive a 5-year tax credit on the additional assessed value of their home due to recent improvements. The credit is 100% of the home improvement assessed value the first year and decreases by 20% for 5 years.
Home improvement tax credits wil not apply to improvements over $100,000.
The home must be owner-occupied at least 6 months a year.
Homeowner must experience an increased value in the assessed value of the property due to the improvements made to the property and provide the necessary proof.
Home must remain in compliance with the Housing Code.
The property tax credit will transfer with ownership.


Homestead Property Tax Credit

This tax credit protects homeowners, regardless of age, income, or property value, from annually spiking tax bills on the home they live in. The home must be the homebuyer’s primary residence.
Check the online State of Maryland Real Property Database, pull up your property, then scroll to the “Homestead Application Information” section at the bottom of the page to check your application status.
You may request your application by emailing hcredit@dat.state.md.us or calling 410.767.2165.
The Homestead Credit caps the increase in taxable assessments each year to a fixed percentage (4% is Baltimore City’s cap) from one year to the next. The homeowner pays no property tax on the market value increase above the 4% cap.

State Department of Assessments and Taxation
(410) 767-2165


Vacant Dwelling Property Tax Credit

The Vacant Dwelling Property Tax Credit was designed to encourage the renovation and reuse of residential vacant properties.
This credit provides 100% relief from city property tax increases in the first taxable year with the credit declining by 20 percentage points each year thereafter.
The property must be occupied by the owner as their principal residence after the rehabilitation.
The home must be the homebuyer’s primary residence.
The home must be residential with no more than four dwelling units.
The credit is applied only to the increased value of the dwelling due to the improvements.
The property must be cited as vacant and abandoned on a housing or building code violation notice for one year; or, have been owned by the Mayor and the City Council for more than one year.
The home needs to have been substantially rehabilitated by the owner, bringing it into compliance with all codes and laws applying to the dwelling.

Baltimore City Bureau of Revenue Collections
(410) 396-3971

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