Baltimore Down Payment Assistance Homeownership Incentive Program

What is the Baltimore down payment assistance homeownership incentive program?

Good News for First-Time Homebuyers! The Office of Homeownership is now offering a First-Time Homebuyers Incentive Program to homebuyers purchasing in Baltimore City. This incentive program provides funding that you can use for closing costs and down payment assistance. Benefits include a $10,000 down payment and closing assistance structured as a 5-year loan, forgivable by 20% per year. Read more details about the down payment assistance program below!

Eligibility Requirements for Baltimore First-Time Homebuyers 

To qualify for the Baltimore Down Payment Assistance Homeownership Incentive Program, you must meet the following eligibility requirements:

• Have not owned a home in 3 years.
• Purchasing a home in Baltimore City.
• Must complete workshop and one-on-one counseling at one of the Office of Homeownership’s approved counseling agencies PRIOR to submitting an offer on a property.
• Family incomes are 80% or below the area median income.

How much financial assistance does the program provide?

The base incentive amount is $10,000 for first-time homebuyers with a household income at or below 80% of the area median income. There is also a $5,000 bonus available to first-time homebuyers that purchase the house they have rented and occupied for at least six months or for those who have a disability or have a household member with a disability.

Benefits of the Baltimore Down Payment Assistance Program

There are many benefits associated with the Baltimore Down Payment Assistance Program including making your home more affordable by lowering your closing costs and boosting your down payment.

Baltimore City First Time Homebuyer Incentive Program Income Limits 

The Baltimore City First Time Homebuyer Incentive Program has income limits that vary depending on the number of household members. The income limits for are as follows:

• 1 Household Member:   $62,600
• 2 Household Members: $71,550
• 3 Household Members: $80,500
• 4 Household Members: $89,400
• 5 Household Members: $96,600
• 6 Household Members: $103,750
• 7 Household Members: $110,900
• 8 Household Members: $118,050

Restriction & Loan Terms 

There are several restrictions and loan terms that you must be aware of before applying for the program. These include:

• The buyer must contribute at least $1,000 towards the purchase and must use the property as the principal residence. 
• The Housing Quality Standard (HQS) home inspection must be conducted by a member of the National Association of Home Inspectors or the American Society of Home Inspectors. 
• The home must be free of any flaking, peeling, or chipping paint inside and outside, and the HQS home inspection must document that there are no unstable paint surfaces. 
• A home inspection is also required in addition to the HQS home inspection. 
• Closing of the property must occur within 90 days of the contract date. 

How to Apply for the Baltimore Down Payment Assistance Homeownership Incentive Program

To apply for this program, you must apply online through the Applicant Portal here.

Turn-Around Time

To ensure a smooth processing of your application, please keep the following in mind:

• All packages should be submitted at least 15 days prior to the settlement date.  
• The turn-around time starts from the date of approval NOT from the date that the file is received in the Office of Homeownership’s office.  
• All files are date stamped and reviewed in the order of receipt.  
• The turn-around time is 10-15 business days, depending on the volume of the program at the time of submission.
• All packages must be submitted via overnight delivery or hand-delivered to the office. NO packages will be accepted via fax or email.
• In most cases, submissions are reviewed within 36 hours or less from the time of receipt depending on the volume of the program at the time of submission. 

FAQ’s About Baltimore’s Homeownership Incentive Program

Is there a limit to the purchase price of the home?

Your mortgage amount cannot exceed the current FHA loan limits of $472,030 for a single-family home in low-cost areas and up to $1,089,300 in high cost-areas.

Do I have to pay back the deferred loan if I sell my home?

If you sell your home within the first 5 years of ownership, you must pay back the deferred loan.

How long does it take to receive the deferred loan?

It takes 5 years to receive a deferred loan.

Do I need to be a resident of Baltimore to qualify for the program?

You must purchase a home in Baltimore City and meet the eligibility requirements.

Can I use the program to buy any home in Baltimore?

Yes, you can buy any home as long as the home is in Baltimore City.

What is homeownership counseling?

Homeownership counseling helps homebuyers prepare for purchasing a home and the new challenges that come with being a homeowner.

Can I combine the program with other homebuying assistance programs? Yes, Participants who qualify for this program, may also qualify for the Direct Homeownership Assistance Program.

Explore Your Options

No matter where you choose to purchase a home, Direct Mortgage Loans has a variety of loans that require little to no down payment. Read our blog Is a 20% Down Payment Really Necessary to Purchase a Home to learn more about the funds you’ll need to purchase a home (hint: in most cases it’s less than you think).