Downpayment Assistance Program for Baltimore City Homebuyers

City Lift Down Payment Assistance Program for Baltimore City Homebuyers

On January 2 the City of Baltimore and Wells Fargo unveiled the new City Lift Downpayment Assistance Program in the City of Baltimore.
City Lift Down Payment Assistance Program is a limited time program. It is designed to help aspiring homeowners pull together the necessary down payment monies to purchase a home. For a limited time, if eligible, homebuyers may be able to receive $15,000 for down payment assistance for the purchase of a primary owner-occupied residence in the City of Baltimore. The full $15,000 is forgivable after the purchaser has lived in the home for five years and if you sell before the end of five years then is forgiven at a rate of 20% per year.
Homebuyers must meet all the program requirements in order to be eligible for the down payment assistance and its ongoing benefits and these funds can be layered with other down payment assistance programs like the Vacant to Value program, Healthy Neighborhoods program, Live Near Your Work, Smart Keys for Employees and some others.
Homebuyers can purchase single family detached homes, 2-4 unit homes, condos and PUDS (planned urban development) but no manufactured homes and the property must be owner-occupied primary residence and the home must be in the City of Baltimore.
There are income limits and the City Lift down payment assistance program is available if you are approved for home financing and your household income is equal to or less than 120% of the Area Median Income adjusted for houshold size. Take a look at the table below.

Household Size	115%	120%
1	$68,950	$71,900
2	$78,800	$82,200
3	$88,650	$93,450
4	$98,450	$102,700
5	$106,350	$110,950
6	$114,250	$119,150
7	$122,100	$127,350
8	$130,000	$135,600

This program will be unveiled and available on January 2, 2013. If you want to qualify you need to start the process now so you don't miss out on the limited time funds. $1,000,000 will be released on January 2, 2013 and once those funds are gone then you have to wait until April 5 and 6, 2013 before the remaining funds are released and you'll need to qualify again.
If you are interested in purchasing a home in Baltimore City and you aren't already working with an agent please contact me so I can refer you to an approved lender and get you started on the path to home ownership.

If you are thinking of buying or selling an home in Maryland give me a call at 410-292-0100 or start your search here and we'll talk about the market conditions and what your home could possibly be worth in today's market place if you are thinking of selling. If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone is worth the plunge into todays market. Century 21 New Millennium is part of the largest nationwide relocation company and can assist with your move here in Maryland or anywhere in the United States or abroad. Ask me how.

In keeping with saluting our heroes, during 2012 I am waving flat fees for active duty military, retired military and the families of fallen military, as well as policemen, firemen and emt's. If you enter into a contract by the New Year's eve I will waive the flat fee at settlement. This is a $395 savings. If you are thinking about buying or selling a home give me a call and receive full service real estate assistance from an experienced agent. Our office is open 7 days a week and we can be reached at 410-730-8888 or I can be reached directly at 410-292-0100.

June Piper-Brandon ~ Associate Broker, CDPE, CIAS, ePro

Century 21 New Millennium

Out of the Box Ideas That Take the Stress out of Saving for a Down Payment

Out of the Box Ideas That Take the Stress Out of Saving for a Down Payment

For those dreaming of owning a home, the thought of coming up with money for a down payment is enough to scare many perspective buyers away. However, even if you don’t have the necessary funds for a down payment in the bank, there are other options that you should take into consideration to come up with the money you need to put a down payment on your dream home.

The easiest way to get a down payment for a home is to borrow against one’s retirement account. Many people have been investing in a 401(k) plan or traditional IRA for years, and first-time homebuyers may borrow up to $10,000 for their down payment without incurring a penalty. For those who are self-employed—or if your employer allows it—you can also borrow up to $50,000 from your current 401(k) and pay yourself back over five years at a low interest rate.

In addition, you can do some research and look for down payment assistance grants. Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to achieve homeownership.

Family is another option that you may want to take into consideration when it comes to securing funds for a down payment. Sure, you may be too proud to want to ask for money, but if your family can help you and your family move into your dream home, isn’t it worth it? If you do get help from a family member, the lender will ask you to sign a form called a gift letter, attesting to the relationship. The lender may also require your parents to explain where they got the money and prove that they are financially able to make such a gift.

If you’re still not finding the money to put together for a down payment, there’s always the creative lease/purchase agreement. Homeowners who can’t sell their homes in this market will be more amenable to cutting a deal with buyers and may be willing to take part in a lease/purchase agreement, where you rent the home you want to buy and a percentage of your rent is applied toward the down payment. If you go this route, make sure you get a contract outlining all the details so both parties are safe.

Adding a down payment option to your wedding registry is gaining popularity among those just starting out in life together. Several mortgage companies allow those getting married to set up a down payment registry. What a great way to celebrate the joining of two people in holy matrimony than to help them buy a house.

If none of these things will work for your specific situation, there’s always the old fashioned “saving for a rainy day” tactic. Try putting aside 10 percent of your paycheck each week and make an effort to bring a lunch to work instead of going out. If you’re married, use the money you would spend on birthday, anniversary and Christmas presents and put that toward your down payment. You might also need to forget that vacation this year. It may seem like a lot, but the sacrifice will be well worth it when you’re living in your new home.

For more tips on how to save for a down payment, contact our office today.

By Keith Loria

If you are thinking of buying or selling an home in Maryland give me a call at 410-292-0100 or start your search here and we'll talk about the market conditions and what your home could possibly be worth in today's market place if you are thinking of selling. If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone is worth the plunge into todays market. Century 21 New Millennium is part of the largest nationwide relocation company and can assist with your move here in Maryland or anywhere in the United States or abroad. Ask me how.

In keeping with saluting our heroes, during 2012 I am waving flat fees for active duty military, retired military and the families of fallen military, as well as policemen, firemen and emt's. If you enter into a contract by the New Year's eve I will waive the flat fee at settlement. This is a $395 savings. If you are thinking about buying or selling a home give me a call and receive full service real estate assistance from an experienced agent. Our office is open 7 days a week and we can be reached at 410-730-8888 or I can be reached directly at 410-292-0100.

June Piper-Brandon ~ Associate Broker, CDPE, CIAS, ePro

Century 21 New Millennium