Maryland Announces Homeownership Initiative, Lowers Rates

Posted by Orb Staff on July 09, 2010 No Comments
Categories : Residential Mortgage

nd Lt. Gov. [link=http://www.governor.maryland.gov/ltgovernor/pressreleases/100708.asp]Anthony G. Brown[/link] has announced a new homeownership initiative that provides $100 million in mortgage loans through the Maryland Mortgage Program (MMP) to homebuyers in areas that will be most impacted by the U.S. Military's Base Realignment and Closure (BRAC) activities. Additionally, Brown has announced that statewide MMP interest rates will be lowered to 4.5%, putting the state's interest rate on par with national rates. ‘For families relocating to Maryland due to BRAC, a real concern for them is finding a new home and a new neighborhood to raise their kids in, and we want to provide them with the necessary tools and programs to make informed decisions concerning their move," says Brown, who also chairs Gov. Martin O'Malley's sub-cabinet on BRAC. Under the BRAC initiative, $100 million in MMP assistance will be set aside specifically for mortgages in 10 BRAC-impacted jurisdictions: Anne Arundel, Baltimore, Carroll, Cecil, Frederick, Harford, Howard, Montgomery and Prince George's counties, as well as the city of Baltimore. The state's Department of Housing and Community Development estimates it will be able to provide approximately 625 mortgages through the program. The initiative, while targeted to BRAC-impacted jurisdictions, is open to all Maryland homebuyers purchasing homes in those 10 jurisdictions, according to Brown. The initiative is supported by capital raised via the Obama administration's New Issue Bond Program (NIBP), administrators say. The NIBP was designed to help housing finance agencies gain needed access to long-term capital through the U.S. Treasury. DHCD says it is able to raise capital under the NIBP by selling tax-exempt revenue bonds to Fannie Mae and Freddie Mac at set interest rates, and any savings from the lower cost of debt are passed along to MMP borrowers. "The combination of lower rates and the $100 million BRAC set aside, as well as the associated down payment and closing-cost assistance options available to borrowers, positions the Maryland Mortgage Program as a great option for BRAC families and all potential homebuyers in Maryland,’ adds DHCD Secretary Raymond A. Skinner. SOURCE: [link=http://www.governor.maryland.gov/ltgovernor/pressreleases/100708.asp]Office of Lt. Gov. Anthony G. Brown

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