Maryland Rolls Out the Red Carpet for BRAC Families with Lowest Maryland Mortgage Program Rates Ever
Lt. Governor Anthony Brown announced a new initiative that will help ease the transition of families seeking to relocate and buy homes in Maryland as a result of the U.S. military’s Base Realignment and Closure process. Standing before a home made vacant through foreclosure, Lt. Governor Brown said the state will set aside $100 million in mortgage loans for homebuyers in the 10 counties most impacted by the influx of new families over the next several years as the military shifts jobs from bases in New Jersey and Virginia to Maryland. In addition, the state will lower the interest rate on its premiere mortgage program to 4.5 percent, lowest in its 30-year history. See how The Baltimore Sun, The Gazette, WTOP.com and the Frederick News Post reported the announcement.
“For families relocating to Maryland due to BRAC, a real concern for them is finding a new home and we want to provide them with the necessary tools and programs to make informed decisions concerning their move,” said the lieutenant governor, chairman of the governor’s subcabinet on BRAC. “With this new initiative, we are rolling out the red carpet to welcome these new families to Maryland by providing access to affordable homeownership opportunities through the state’s low-interest, fixed-rate mortgages. At the same time, we are preserving our neighborhoods. This initiative will help encourage homeownership and reverse the trend of housing vacancies that threaten the value of our neighbors’ homes.”
Under the new BRAC Housing initiative, $100 million in Maryland Mortgage Program assistance will be set aside for any family seeking to buy homes in Anne Arundel, Baltimore, Carroll, Cecil, Frederick, Harford, Howard, Montgomery and Prince George’s counties and Baltimore City. DHCD estimates it will be able to provide approximately 625 mortgages.
DHCD Secretary Raymond Skinner says the Obama Administration’s New Issue Bond Program makes this initiative possible. The New Issue Bond Program was designed to support Housing Finance Agencies such as DHCD obtain much-needed access to long-term capital through the U.S. Treasury. DHCD is able to raise capital through the program 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 Maryland Mortgage Program borrowers.
Learn more about the Maryland Mortgage Program, the state’s flagship mortgage assistance program, and how it features a variety of low-interest, fixed-rate mortgage loan options primarily targeted to first-time homebuyers. For more than 30 years, the Maryland Mortgage Program has provided families with reliable and flexible mortgage loans and downpayment and settlement cost assistance The program is funded by private capital raised through DHCD’s ability to issue mortgage revenue bonds. Program loans are administered by a network of over 50 private lending institutions across the state.
“By lowering Maryland Mortgage Program interest rates, we’re ensuring that the program remains a viable mortgage product in a competitive marketplace,” said Secretary Skinner. “The combination of lower rates, the $100 million we’re setting aside as part of this new initiative, 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.”
