First-time buyers can get low-rate loans from state

Real Estate Watch

September 07, 1997

First-time homebuyers in Maryland will be able to take advantage of new low-interest mortgages being offered by the state's Department of Housing and Community Development.

The state last week began making available $77 million in mortgages for use in 21 counties and Baltimore. In Baltimore County, however, mortgages will be restricted to revitalization and directed-growth areas. The money is coming through the issuance of tax-exempt revenue bonds.

In announcing the Maryland Mortgage Program, Gov. Parris N. Glendening said the state expects to "make about 939 mortgage loans available."

The 30-year term has a 6.4 percent fixed rate, about 1 percent lower than market. The loans will be FHA-insured, and all borrowers must enroll in a home-buying education course, according to department spokesman Gary Tavin.

Counties were allowed to tailor the income and purchase price requirements for newly constructed or existing homes to reflect market conditions. In Baltimore County, for example, income limits are $57,800 for one or two occupants and $66,470 for three or more. The maximum home price for the county is $140,643 for an existing home and $152,362 for new construction.

To apply, a borrower must have a signed sales contract before going to a participating lender, who will originate the loan.

Program brochures with county-by-county eligibility requirements are available by calling 410-514-7530 or toll free, 800-638-7781.

Pub Date: 9/07/97

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