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Michael Braverman, DHCD Commissioner Mayor Bernard C. "Jack" Young

Federal Mortgage Programs and Homeownership Assistance

Community Development Block Grant (CDBG) Homeownership Assistance Program

The Office of Homeownership established a new program designed to assist first time home buyers. The program, the Community Development Block Grant Program, can give qualified first time home buyer $5,000 toward down payment and settlement expenses.

Who is eligible?

First-time homebuyers with a counseling certificate from a City Approved Counseling Agency. Upon receiving a counseling certificate, the borrower can then find a property and sign a contract to purchase. Once executing a contract, the borrower must bring that contract back to the counseling agency to have the CDBG program application completed. The property must be inspected utilizing an HQS inspection conducted by a certified lead abatement inspector. Please be absolutely certain that there is no peeling, flaking, chipping paint inside or outside the purchased property.

If there is chipped, pealing, flaking or otherwise deteriorating paint, it must be tested for lead based paint, and if necessary, abated prior to closing. Borrower must ensure that an Inspector certified to conduct Lead Paint Abatement inspection has completed the lead abatement inspection and a copy of the certificate must be pro- vided to the Office of Homeownership prior to closing. Buyers should receive the Seller Lead Based Paint Disclosure and EPA Pamphlet from the housing counseling agency when evaluating the merits of a house.

Additionally, if you qualify for other mortgage incentive programs, you can stack these incentives to pay all of your closing cost expenses and may have enough residual to reduce your mortgage principal. We have witnessed homebuyers stacking more than $20,000 in incentive funds.

What are the benefits?

$5,000 down payment and closing assistance structured as a 5-year loan forgivable 20 percent per year.

Who is eligible?

The funding source for the CDBG program have 80% median income limitations. You must be within the income limitations to qualify for this program. The income limitations are as follows:

Household Size









Annual Income









Housing Choice Voucher Homeownership Program

What is it?

This program helps current Housing Choice Voucher Program participants purchase homes by converting their monthly rental assistance payments to mortgage payments.

What are the benefits?

The amount of subsidy depends on family size, income, purchase price, and other factors, and reflects each individual household's level of affordability.

What are the restrictions/loan terms?

A minimum of 1 percent of the purchase price must come directly from the purchaser. All homes must be purchased in Baltimore. Participants must meet regular program eligibility requirements in addition to the new regulations governing the Homeownership program.

For more information, call Tonya Small at 410-396-4175.