State of Maryland Rental, Home and Business Ownership Incentives
The State of Maryland offers tons of Home and Business Ownership Programs and Incentives which vary from one County to another. These Loan Programs were established to make home ownership and the cost to run a small business more affordable and to help revitalize communities which were heavily affected by economic downfalls. We selected a handful of programs available to potential Homeowners and Business Owners.
See if one of these great State run programs apply to you!
Buying a Home:
Maryland Mortgage Program Loans
Conventional, FHA, VA, Refinance, REO, and RHS loans are available through the Maryland Mortgage Program (MMP). Loans are below market-rate, 30-year fixed, and fully amortizing.
- The maximum eligible income for a household of 1 or 2 persons is $107,160. The maximum eligible income for a household of 3 or more persons is $125,020.
- Loans can be used to buy Department of Housing and Community Development (DHCD) owned homes, also known as Real Estate Owned (REO) homes.
- MMP loans, except the Refinance loan, may also be used with one or more downpayment and closing costs assistance programs: $5,000 from Downpayment and Settlement Expense Loan Program (DSELP); $2,500 from the Community Partners Incentive Program (CPIP)
- Homebuyer must earn their Homeownership Counseling Certificate from a City-approved counseling agency before writing a sales contract.
- The home must be the homebuyer’s primary residence.
- Mortgage loan cannot exceed $525,901.
- Homebuyer may not own any other properties, including investment properties, at time of settlement.
- This incentive may be used in addition to other incentives.
- Homebuyer must use an approved lender.
The Department of Housing and Community Development, State of Maryland has DHCD Owned homes for sale throughout the State of Maryland. These homes may be purchased by Homebuyers (Owner/Occupant), Investors, or Non-Profit Organizations.
Down-Payment Maryland Mortgage Program
The Downpayment and Settlement Expense Loan Program (DSELP) is a program used in conjunction with the Maryland Mortgage Program that offers 0% deferred loans for downpayment and settlement costs to low- and moderate- income homebuyers.
Ground Rent Redemption Loan Program
The Ground Rent Redemption Loan Program was created by the Maryland General Assembly in 2007 to provide loans to homeowners to buy out (redeem) ground leases. A “ground lease” is a lease for a term of years (usually 99 years) that is renewable forever and is subject to the periodic payment of “ground rent” by the leasehold tenant to the ground lease holder. Ground rents are most prevalent in Baltimore City but are held in some other counties as well. The program cannot provide grants for this purpose.
Homeownership for Individuals with Disabilities Program
The Homeownership for Individuals with Disabilities Program provides low-interest mortgage loans to eligible disabled homebuyers and homebuyers with a disabled son or daughter.
Habitat for Humanity
While the loan application is similar to that of a standard mortgage application, the qualification levels are substantially different as each homebuyer receives a zero-interest mortgage with payments not to exceed 30% of their gross household monthly income.
With the support of the committee and Board, partner families work with staff members to develop a financial plan and lifelong budget that will enable them to buy, maintain and thrive as a homeowner. From repairing credit to “paying themselves” through savings, the meetings cover every detail. After getting an overview of the financial aspects of homeownership, partner families contribute 200 to 300 hours of sweat equity—the signature feature of Habitat —and participate in 50 hours of financial and homeownership education. They hang the drywall, pound the nails and paint the walls of the homes they’ll live in one day.
Maryland Habitat for Humanity Organizations:
- Habitat for Humanity Metro Maryland- Montgomery and Prince Georges County
- Habitat for Humanity Maryland- Frederick County
- Habitat for Humanity of the Chesapeake
Improving a Home Or Business:
BeSMART ProgramDHCD’s Be SMART program, funded through the US Department of Energy’s Better Buildings program, provides increased comfort, safety and affordability to buildings in Maryland through energy efficiency improvements. Through the Be SMART program, financing is available for the purchase and installation of equipment and materials for energy efficiency measures.
Such items include, but are not limited to ENERGY STAR qualified:
-HVAC systems, insulation, windows, draft stopping and duct sealing, appliances and fixtures, and water heating equipment. These improvements are expected to result in energy savings of 15-30%. This translates to significantly lower energy bills for consumers, more comfortable buildings and reduced consumption of fossil fuels. Additional Home/Business Improvement Programs found Here: Maryland Home/Business Improvement Loans
Rental Assistance:
Community Legacy, a program of the Department of Housing and Community Development (DHCD), is designed to assist urban neighborhoods, suburban communities and small towns that are experiencing decline and disinvestment, but have the potential, with modest public and private investment, to be vibrant places to live and work.
Rental Allowance Program (RAP)
The Rental Allowance Program (RAP) provides monthly rent assistance for low income families who are homeless or have an emergency housing need. The monthly payments are fixed amounts, depending upon the size of the family and the location of the rental housing unit in the State. Payments can be received for up to 12 months, and may be extended under special circumstances.
Section 8 Certificate/Voucher Program
The Section 8 Existing Certificate/Voucher Program is a federal program that provides monthly rent assistance for low income families. The family pays approximately 30 percent of their income toward the rent with the balance of the monthly rent, up to a fair market rent, paid by the Section 8 assistance.
Section 811 Rental Assistance Demonstration Program
The Section 811 PRA Demo Program is federally funded grant to DHCD that provides project-based rental assistance for non-elderly adults with disabilities, age 18 and over and below 62 years of age. With incomes at or below 30% of AMI who are Medicaid recipients. The individual pays approximately 30 percent of their income toward rent with the balance of the monthly rent, up to a fair market rent, paid by Section 811 PRA assistance.
Business Assistance
Through the Be SMART Business program, DHCD is offering low-interest loans to small business owners and commercial property owners to realize substantial, immediate, and ongoing cost savings through energy efficiency improvements.
Community Investment Tax Credits
Community Investment Tax Credits (CITC), formerly named Neighborhood Partnership Program (NPP), supports nonprofit projects by awarding allocations of State tax credits to the sponsoring organizations to use as incentives for business contributions. Any business may reduce its Maryland tax liability by contributing cash or goods to support CITC projects. The business earns credits equal to 50 percent of the contribution, in addition to deductions on both State and Federal taxes as a result of the charitable contribution.
State Small Business Credit Incentive
The State Small Business Credit Initiative program (SSBCI) provides an additional source of capital to help stimulate investment and revitalization efforts in Maryland’s older communities. The SSBCI loans provide flexible gap financing to small businesses locating or expanding in locally designated neighborhood revitalization areas throughout the State.