The Maryland Mortgage Program, an initiative through the state’s Department of Housing and Community Development, has made $30 million available for reduced-interest rate home loans in targeted areas around Maryland, including parts of Hagerstown.
Bill Milko, senior loan underwriter for the DHCD, said loans are for first-time homebuyers at a rate of 2.875 percent, or 3.675 percent annually, as a way to commemorate June as National Homeownership Month and stimulate the housing market in federally targeted areas.
The MMP offers a variety of low-interest, fixed-rate mortgage loan options with down payment and closing cost assistance for first-time homebuyers, according to a news release.
“There’s a better rate on foreclosed properties and short sales (1 percent loans) to try to get rid of the inventory of those, and to start the housing industry moving again,” Milko said.
Buyers in target areas are eligible for a one-time exemption to the first-time homebuyer requirement, meaning they could have owned a home previously, Milko said.
The reduced interest rate will be offered to all qualified buyers for approximately three months, or until the $30 million allotment is committed.
The money for the program stems from leftover bond proceeds from a newly issued bonds program, according to Donna Mitchel, acting manager of lender relations for the program.
Milko said owning a home can offer stability and a sense of community for people.
And with such low interest rates, homeownership is not only possible, but it “can act as a savings for you once you start building up equity in the house,” he said.
“Homeownership is a thing that can be affordable,” Milko said.
For more information on the Maryland Mortgage Program, including details on income and purchase price limits as well as a map of targeted areas, visit www.mmprogram.org or contact the Community Development Administration by phone at 410-514-7535 or by email at SingleFamilyHousing@mdhousing.org.