First Time Buyers
Posted on 03/01/2009 01:58 pm by abautistaPrograms available
For most individuals or families owning a home is the beginning of wealth accumulation. Most stumbling blocks that are encountered in the journey towards home ownership are the result of what we do not know about the process. In addition, the costs of downpayment and settlement can easily overwhelm first time buyers, as many of them are unable to save enough money for them. In fact, they are considered to be the number impediment to homeownership. There are a number of programs and initiatives at the federal, state and county levels designed to assist first time homebuyers in the pursuit of the american dream. They include credit counseling, homebuyer workshops, downpayment and closing cost assistance programs, loan programs with lowered interest rates and better terms. employers match programs, homeownership vouchers, mortgage insurance assitance programs, tax credits, individual development accounts or IDA, single family mortgage revenue bonds, down payment funds, etc.
FHA SINGLE-FAMILY MORTGAGE PROGRAM (SECTION 203(e))
Federal mortgage insurance to finance homeownership and the construction of housing.
http://www.hud.gov/progdesc/203b-df.cfm
202-708-1112
CONDOMINIUM HOUSING; FHA MORTGAGE INSURANCE (SECTION 234(c))
Federal mortgage insurance to finance condominium homeownership.
http://www.hud.gov/progdesc/234c-df.cfm
202-708-1112
THE AMERICAN DREAM DOWNPAYMENT FUND
The American Dream Downpayment Fund builds upon an existing program—the HOME program—which helps communities across the country expand the supply of decent affordable housing. Through the existing flexibility of the HOME program, grants will be awarded to state and local governments to assist eligible families with closing costs and downpayments. Opportunities for low- and moderate income families looking to purchase their first homes will multiply.
202-708-1112
TEACHER NEXT DOOR
The Teacher Next Door program encourages teachers to buy homes in low- and moderate-income neighborhoods by offering a 50 percent discount from the list price.
202-708-1112
OFFICER NEXT DOOR
The Officer Next Door program makes homeownership faster and more affordable for Law Enforcement Officers. The selected bidder may purchase the property at a 50 percent discount from the list price.
202-708-1 112
HOMEOWNERSHIP VOUCHERS
If you are a participant in the Housing Choice Voucher program and receive rental assistance, you may be eligible to receive monthly assistance in meeting homeownership expenses.
202-708-1112
SINGLE FAMILY PROPERTY DISPOSITION PROGRAM (SECTION 204(g))
HUD sells one- to four-family Federal Housing Authority (FHA] properties in a manner targeted to expanding homeownership opportunities.
http://www.hud.gov/offices/hsg/sfh/reo/reo_home.cfm
202-708-1112
HOMES FOR SALE BY THE US GOVERNMENT
The HomeSales.gov web site provides current information about foreclosed federally- insured single-family homes for sale by the U.S. Federal Government. These previously owned homes are for sale by public auction or other methods depending on the property, and are sold “as is” in their current condition. Anyone can buy a home for sale by the U.S. Government, but you must work with a real estate agent, broker or servicing representative to submit an offer or bid. Currently, the U.S. Departments of Housing and Urban Development (HUD), Agriculture (USDA/Rural Development), and Veterans Affairs (VA) have homes listed on this site.
202-708-1112
REHABILITATION MORTGAGE INSURANCE (SECTION 203(k))
Mortgage insurance to finance the rehabilitation of one- to four – family properties.
http://www.hud.gov/progdesc/203k-df.cfm
202-708-1112
VA-GUARANTEED LOAN
These loans are made by a lender, such as a mortgage company, savings and loan, or bank. VA’s guaranty on the loan protects the lender against loss if the payments are not made, and is intended to encourage lenders to offer veterans loans with more favorable terms. The amount of the guaranty on the loan depends on the loan amount and whether the veteran used some entitlement previously. With the current maximum guaranty, a veteran who hasn’t previously used the benefit may be able to obtain a VA loan up to $240,000 depending on the borrower’s income level and the appraised value of the property. The local VA office can provide more details on guaranty and entitlement amounts.
202-273-7330
HOUSING IN DECLINING NEIGHBORHOODS (SECTION 223(E))
Mortgage insurance to purchase or rehabilitate housing in older declining urban areas.
http://www.huduser.org/whatsnew/ProgramsHUD.pdf
202-708-1112
ADJUSTABLE RATE MORTGAGES(ARMs) (SECTION 251)
PROGRAM DESCRIPTION
Federal mortgage insurance for adjustable rate mortgages.
http://www.hud.gov/progdesc/251-df.cfm
202-708-1112
Montgomery County Housing Programs
100 Maryland Ave., 4th floor
Rockville, MD 20850
(240) 777-3600
DHCA Website
DHCA Housing Programs
- Moderately Priced Dwelling Unit Program (MPDU) – The Moderately Priced Housing (MPH) Law passed in 1974 and requires that between 12.5% and 15% of the houses in new subdivisions of 20 or more units be moderately priced dwelling units (MPDUs). To be eligible for the MPH program, you must complete an application which provides the Department of Housing and Community Affairs (DHCA) with family composition and income information. Your total annual household income must be below the maximum incomes set for the program. There is also a minimum income of $20,000 required to participate in the program. If you are determined to be eligible, you will receive a Certificate of Eligibility (for sales, for rental, or for both).
- Weatherization Program – Helps you weatherize your home to save money on fuel bills.
- Single Family Home Improvement Loan Program – Since January 1985, Montgomery County has helped many households afford to make vital repairs to their homes. This program provides both financial and technical assistance to eligible homeowners living within Montgomery County.
- American Dream Downpayment Initiative (ADDI) – The American Dream Downpayment Initiative (ADDI) was signed into law on December 16, 2003. ADDI aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities. ADDI will help first-time homebuyers with the biggest hurdle to homeownership: downpayment and closing costs. The program was created to assist low-income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase.
- Productivity Housing Program for Developers – The Montgomery County Council created the Productivity Housing program on September 17, 1996; under this program, affordable housing (both rental and for sale) may be approved as an eligible use in certain commercial and industrial zones in Montgomery County through the special exception process. The housing produced is designed and priced to be affordable to households earning 75 percent of County median income, adjusted for family size.
- Workforce Housing – In Montgomery County, Workforce Housing is intended to be housing affordable to households whose incomes are too high to be eligible to participate in the Moderately Priced Dwelling Unit (MPDU) Program. Please check back for further updates.
10400 Detrick Avenue
Kensington, MD 20895
(301) 929-6700
HOC Website
HOC Housing Programs
HOC manages 1,500 public housing units that includes seven family developments, four high-rise towers for elderly and disabled residents, and scattered sites throughout the County.
www.hocmc.org/Housing/PH/PH.htm
HOC administers over 5,600 federal Housing Choice vouchers that allow eligible individuals to rent in the private market and apply a subsidy to their rent.
www.hocmc.org/Housing/HCV/HCV.htm
This is a listing of HOC-owned and/or managed properties in Montgomery County, Maryland.
www.hocmc.org/Housing/properties/properties.htm
The Fair Housing Act prohibits discrimination in housing based on your race, color, national origin, religion, sex, family status (including children under the age of 18 living with parents or legal custodians; pregnant women and people securing custody of children under 18), or disability.
www.hocmc.org/Housing/FairHousing.htm
The programs on this page provide housing specifically for people with disabilities. However, persons with disabilities should also look into our other housing programs, for which they may qualify, including Public Housing and the Housing Choice Voucher program.
www.hocmc.org/Housing/Disabled.htm
The programs on this page provide housing specifically for people with disabilities. However, persons with disabilities should also look into our other housing programs, for which they may qualify, including Public Housing and the Housing Choice Voucher program.
www.hocmc.org/Housing/Seniors.htm
HOC does not provide emergency housing. In addition, the programs on this page are specifically for people that are homeless and have been referred to HOC by other participating organizations.
www.hocmc.org/Housing/Homeless.htm
Lower rates, higher Incomes & sales prices!
www.hocmc.org/Housing/MortFin/MortFin-Homeown.htm
Public housing and HCV families achieve self-sufficiency over a five to seven year period towards ending dependency on all public benefits, such as welfare, food stamps, medical assistance, and child care subsidies.
These are additional affordable housing programs; some of which offer below-market rents and others which base their rent on 30% of the household income. Some of these housing programs are not HOC-related. In addition, each program and/or development maintains its own waiting list, income requirements and application process. Therefore, you must call each apartment complex directly for information and/or to request an application.
www.hocmc.org/Housing/Affordable.htm
DC Housing Programs
$5,000 federal income tax credit is available to first time homebuyers in the District of Columbia.
www.irs.ustreas.gov
202-777-BOND
The DC Employer Assisted Housing program provides grants and deferred loans up to $11,500 to employees of the District of Columbia government who are first-time homebuyers in Washington, DC.
www.dhcd.dc.gov
202-777-7006
Housing Counseling Services, Inc.
2430 Ontario Road, NW
Washington, DC 20009
This program fosters saving toward the down payment on a home and assists participants to improve their credit, while learning how to be successful homeowners.
www.mannadc.org
202-832-1845
MANNA, Inc.
828 Evarts Street, NE
Washington, DC 20018
Through the IDA program, individuals open an IDA account at a specified local bank with an initial deposit of $400. IDA participants then develop a monthly savings plan to reach a savings goal. MHCDO matches $2 for every $1 saved by the IDA participant.
www.mhcdo.org/housing/ida.htm
202-396-1201 x135
Marshall Heights Community
Development Organization
3939 Benning Road, NE
Washington, DC 20019
HPAP provides interest-free or low-interest loans for down payments, closing costs, or other expenses associated with buying a house, a condominium or a cooperative in the District. Amount of loan is adjusted to reduce the total monthly mortgage payment to 28% of household’s monthly gross income. For very low income families, repayment of loans is deferred until house is sold.
www.dhcd.dc.gov
202-442-7290
Department of Housing and Community Development
801 North Capitol Street, NE
Suite 8000
Washington, DC 20002
The DC Housing Finance Agency (HFA) finances below-market rate loans to low- and moderate-income residents using proceeds from the sale of Single Family Mortgage Revenue Bonds.
www.dchfa.org
202-777-1600
DC Housing Finance Agency
815 Florida Avenue, NW
Washington, DC 20001
The Scattered Sites Projects’ mission is two-pronged: to invigorate neighborhoods and communities in the District of Columbia by renovating abandoned houses, and to provide affordable opportunities by marketing these renovations to low- and moderate-income families, especially first-time homebuyers.
www.micasa-inc.org
202-232-1375
Mi Casa, Inc.
1769 Lanier Place
Washington, DC 20009
The program matches down payment funds up to $1,500 (program provides $500 for each $2,500 saved by an employee). The program includes deferred payment loans up to $10,000, ability to keep assigned patrol car during off-duty hours, an income tax credit of $2,000 per year for five years and a sliding-scale, five year property tax credit.
www.dchcd.dcgov.org
202-777-7006
Housing Counseling Services, Inc.
2430 Ontario Road, NW
Washington, DC 20009