Saturday, February 13, 2010

New Program Beginning August 1st for First Time Homebuyers!

Community Development Block Grant

CDBG's First Time Homebuyer Program

What is it?

Beginning August 1st, the Office of Homeownership established a new program designed to

assist first time homebuyers. The program, the Community Development Block Grant

Program, can give qualified first time homebuyer $5,000 toward down payment and

settlement expenses.

Who is eligible?

First-time Baltimore homebuyers with a counseling certificate from a City Approved

Counseling Agency.

Upon receiving a counseling certificate, the borrower can then find a property and sign a

contract to purchase. Once executing a contract, the borrower must bring that contract back

to the Counseling Agency to have the CDBG program application completed. The property

must be inspected utilizing an HQS inspection. Please be absolutely certain that there is no

peeling, flaking, chipping paint inside or outside the purchased property.

Additionally, active City employees may already qualify to receive $3,000 in home buying

incentive funds. If you attend the Eastside Trolley Tour September 12th at City College High

school, you may qualify for another $3,000. Also, if you purchase before November 30, you

may qualify for the $8,000 Homeownership Federal Tax Credit.

What are the benefits?

A possible combined amount of $11,000 in incentive money and a possible $8,000 tax

credit.

What are the restrictions/loan terms?

The funding source for the CDBG program have 80% median income limitations. You must

be within the income limitations to qualify for this program. The income limitations are as

follows:

1 person $44,800

2 person $51,200

3 person $57,600

4 person $64,000

5 person $69,100

6 person $74,250

7 person $79,350

8 person $84,500

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