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!
Eligible First-Time Homebuyers
- 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.
First-Time Homebuyer Incentive Program 2022 Income Limits
- 1 Household Member: $55,950
- 2 Household Members: $63,950
- 3 Household Members: $71,950
- 4 Household Members: $79,9004
- 5 Household Members: $86,300
- 6 Household Members: $92,700
- 7 Household Members: $99,100
- 8 Household Members: $105,500
- 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.
Restriction & Loan Terms
- 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.
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).
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