August 09, 2010
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Maryland Department of Housing and Community Development

 

CROWNSVILLE, MD (August 9, 2010) – Maryland Department of Housing and Community Development (DHCD) Secretary Raymond A. Skinner announced today that statewide its Maryland Mortgage Program (MMP) interest rate will be lowered to 4.25 percent and the base amount for its Downpayment and Settlement Expense Loan Program (DSELP) will be increased from $3,500 to $5,000 for borrowers who apply and are approved for an MMP loan.

“Buying a home is still a good investment,” said Secretary Skinner. “Right now is a great time to buy with lots of inventory from which to select, and we believe that by lowering our interest rate and increasing our down payment assistance, we are offering an attractive opportunity to first time homebuyers to make that investment and purchase a home.”

MMP is the State of Maryland’s flagship mortgage assistance program, featuring a variety of low-interest, fixed-rate mortgage loan options primarily targeted to first-time homebuyers. For more than 30 years, MMP has provided Maryland’s families with reliable and flexible mortgage loans. The program is administered by DHCD’s Community Development Administration (CDA) and is funded by private capital raised through DHCD’s ability to issue mortgage revenue bonds. Program loans are administered by a network of over 50 private lending institutions across the State, enabling potential homebuyers to receive MMP assistance through local banks.

"This increased mortgage assistance will be a definite help to first-time buyers. It also will have a positive impact on neighborhoods and help to stabilize the housing market at a time when inventories of homes for sale are at record levels," said Joseph T. "Jody" Landers, Executive Vice President of the Greater Baltimore Board of Realtors.

Potential homebuyers who participate in MMP also are eligible for an assortment of downpayment and closing cost assistance programs like the Downpayment and Settlement Expense Loan Program (DSELP) which offers up to $5,000 in assistance in the form of a zero percent deferred loan. MMP borrowers also may receive additional downpayment and closing cost assistance through several DHCD matching programs, including the employer matching program House Keys 4 Employees, the Builder/Developer Incentive Program, and the Community Partner Incentive Program. All of these downpayment programs can be combined, providing the prospective homeowner a higher level of assistance. For more information on the Maryland Mortgage program, especially details on income and purchase price limits, please visit Maryland Mortgage Program (MMP).

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The Maryland Department of Housing and Community Development works with partners to finance housing opportunities and revitalize great places for Maryland citizens to live, work and prosper. To learn more about the Maryland Mortgage Program and other homeownership initiatives, visit www.mmprogram.com. To learn more about DHCD's other programs, visit www.mdhousing.org.

News updates also are available by following DHCD on Twitter (www.twitter.com/MDHousing) and Facebook (www.facebook.com/marylandhousing).