Local Government Help on a Mortgage

Everyone knows about the federal government first time buyer tax credit but they not know about the local help that state's, cities and counties can offer. Many of these programs are income and geographically restricted. In Maryland the Department of Community Development (DHCD) has many different programs available for buyers. You must be a first time homebuyer and stay under the cap of $525,000. They are very low interest, fixed rates and are limited by income depending on where you live. There also is the HK4E program for government employees and possibly others as well. This provides you with downpayment assistance which went away with the elimination of companies like Ameridream last year. In Maryland there are cities and counties that also provide funds to help the lower income, first time homebuyer.

Virginia also has programs to assist thru the VHDA. They have a tax credit plus program that lets you get a second mortgage to finance down payment and closing costs. There are no payments or interest charges for the first 12 months and then after that pay off the loan over 29 years which means the payment will be very low.

DC has the very popular HPAP which because of it's popularity and the economy actually ran out of funds for awhile last year. It is for low and moderate incomes and you must have good credit and live in the District. There are many more restrictions on this and other programs, but I wanted to let you know the basic parameters. If you qualify you get a second mortgage again like Virginia to cover downpayment and closing costs. You make no payments for the first 5 years. In year 6 you begin to repay the loan but the payment is well under $100 per month even if you borrow the entire amount. DC also has the Bond program and this one is NOT restricted by income. You can get up to 10,000 in a derred loan for 5 years with a low fixed interest rate. You may also qualify for the District $5,000 tax credit as long as you are under 90k for single buyers and 130k for married.

As you can see there are MANY programs available to qualified first time home buyers. The help is there, the prices and the rates are there as well. Please let me know how I can help you.

Thanks,