Some areas are targeted for low-cost mortgages

REAL ESTATE MAILBAG

January 09, 1994

Question: How do I find organizations, preferably local ones, that provide low-cost mortgages?

Answer: There are many organizations -- public, private and nonprofit -- that provide low-cost mortgages. Some of these can also provide help through deferred-loan programs with settlement costs.

Nonprofit organizations typically lend in a particular geographic area or targeted neighborhood. In Baltimore City, for example, both St. Ambrose Housing (235-5770) and Housing Services of Baltimore (327-1200) are nonprofit housing organizations that help renters become homeowners. Both organizations try to revive neighborhoods by increasing the percentage of homeowners through the use of low-cost, below-market mortgage loans.

Neighborhood Housing Services targets neighborhoods -- currently the city neighborhoods of Patterson Park, Govans, Irvington and Coppin Heights. St. Ambrose Housing operates throughout Baltimore.

The Maryland Community Development Administration, or CDA, (514-7515) has several below-market loan and settlement cost loan programs. These programs are available throughout Maryland and include programs for first-time buyers. CDA typically works with private lenders. Talk to your neighborhood lender to see if they participate in CDA mortgages.

If you or your spouse is a veteran, you may qualify for a VA mortgage. Call the Department of Veterans Affairs (685-5454) for eligibility requirements and a list of participating private lenders.

Q: What documents do I need at settlement? How do I have to prepare for settlement?

A: The secret to a smooth real estate closing or settlement is preparation. Your title company can advise you on items you'll need, but typically a buyer will need: hazard or fire insurance for the property (the lender will require proof of this insurance to approve closing of the loan); a location survey (proof that the house purchased is located on the lot or property); and termite certificate. It is best to get the termite certificate and location survey early so that if they reveal problems, they can be dealt with before the settlement.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.