Eligible Maryland Homefront borrowers will get a reduced fee on federal tax credit
CROWNSVILLE, MD – July 1, 2014 – (RealEstateRama) — The Maryland Department of Housing and Community Development announced new initiatives for Maryland Mortgage Program that will make homeownership more affordable – and more accessible – to borrowers who are veterans or active-duty military members.
Through Maryland Homefront, homebuyers are eligible for a reduced interest rate on a Maryland Mortgage Program loan and a discount on fees associated with the Maryland HomeCredit federal tax credit. The program is open to active duty military, including Reserves and National Guard, as well as honorably discharged veterans and honorably discharged disabled veterans.
“Through the longest wars in American history and the greatest recession since the Great Depression, our goals as an administration have remained constant and true: to grow our economy from the middle up and the middle out, and to expand opportunity to more people rather than fewer,” said Governor Martin O’Malley. “By increasing access to homeownership with these initiatives, we are doing right by our veterans and military families who have sacrificed so much for their neighbors, our state and our country.”
“As we prepare to celebrate Independence Day, and the freedoms that make America the country we all love, we must give thanks to the brave men and women who have fought to protect our independence,” said Lt. Governor Anthony Brown, a colonel in the U.S. Army Reserves and one of the highest-ranking public officials in the country to have served a tour of duty in Iraq. “Our veterans and military families have sacrificed so much on our behalf, and through the Maryland Homefront initiative, we can help repay that debt by providing them with access to secure, affordable housing opportunities.”
Since the original launch of Maryland Homefront in 2012, 161 veterans and military families have received more than $35.5 million in mortgage assistance at fixed rates of 3 percent to 3.5 percent.
Maryland Homefront borrowers will receive a 0.25 % interest rate reduction on the current Maryland Mortgage Program interest rate for the program’s conventional and government-insured loans. The Maryland Mortgage Program has been the state’s flagship mortgage purchase program for more than 30 years. Program loans are administered by a network of more than 60 private lending institutions across the state. Additional benefits of the program include pre-purchase home buyer education and significant down payment assistance. A list of participating lenders and current interest rates are available at the Maryland Mortgage Program website: http://mmp.maryland.gov
Veterans and military families using Maryland Homefront to purchase a home before December 15, 2015 can use the Maryland HomeCredit to claim 25 percent of the annual mortgage interest paid as a federal tax credit up to $2,000 for every year the mortgage is outstanding and they live in the home. As part of the Homefront initiative, DHCD will waive its fee for the tax credit, providing additional savings to eligible military homebuyers; however, any fees charged by private lending institutions may still apply. The homebuyer must get the Maryland HomeCredit at the time they close on their mortgage, and refinances are not eligible.
In addition to the tax credit, Maryland Homefront homebuyers are also eligible for up to $5,000 in basic down payment assistance. Additional assistance is available through Partner Match Programs. Through these programs, DHCD agrees to match any down payment assistance up to $3,500 offered by participating employers, builders and developers, and community organizations. Partner Match funds can be combined with the basic down payment assistance.
“The O’Malley-Brown administration still believes in homeownership, despite all that has happened the last few years, including the recession and the collapse of the national housing market,” said DHCD Secretary Raymond Skinner. “Homeownership helps stabilize neighborhoods, helps stimulate our economy and helps hardworking families build for the future. We are pleased to build upon our past programs for veterans and military families with this initiative.”
For information about the Maryland Mortgage Program, Maryland Homefront, down payment assistance, and the Maryland HomeCredit Program, as well as the current loan specials, participating lenders and homeownership counselors in your area, visit: http://mmp.maryland.gov
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The Maryland Department of Housing and Community Development works with partners to finance housing opportunities and revitalize great places for Maryland citizens to live, work and prosper. To learn more about DHCD programs, log on to www.mdhousing.org. To learn more, follow Community Review, DHCD’s blog. News updates also are available by following DHCD on Twitter (http://twitter.com/MDHousing) Facebook (http://www.facebook.com/MarylandHousing).
For more information:
Director, Office of Communications and Marketing
wilson (at) mdhousing (dot) org
hallw (at) mdhousing (dot) org
devilbiss (at) mdhousing (dot) org