Anne Arundel County's new Mortgage Assistance Program is now in place to help income-eligible first-time homebuyers qualify for low-interest mortgages.
The program is financed through the $500,000 Affordable Housing Trust Fund created by County Executive O. James Lighthizer to remove obstacles to first home-ownership.
The county's Mortgage Assistance Program will work in conjunction with the state of Maryland Mortgage Program as administered by the Maryland Department of Housing and Community Development.
It will provide a maximum of $10,000 to individual homebuyers who require additional assistance in order to qualify to buy a home through the state mortgage program.
The county funds will be used to write down the cost of the mortgage amount so that a family can afford monthly payments.
To qualify for the program, an individual borrower's income must not exceed $30,000, and a family borrower's income must not exceed $37,500.
The maximum purchase price for a house must not exceed $88,000 for existing houses and $93,500 for new houses.
The mortgage term is 30 years at 7.75 per cent interest for households with annual incomes below $25,000, and 8.875 per cent for households with annual incomes between $25,000 and the program limit of $37,500.