housing – Jay's Real Estate Blog

Md. Mortgage Program Unveils Special Home Buying Incentives For Garrett Co.

May. 31, 2012

Maryland Mortgage Program officials announced this morning that they are offering a reduced interest rate of 2.875% (APR 3.675%) in a few “targeted” areas around the state, including all of Garrett and Allegany counties.

The promotion, which commemorates June’s National Homeownership Month, was announced by Maryland Housing Secretary Raymond A. Skinner at a home for sale in the Barclay-Old Goucher community of Baltimore City, which is also considered a targeted area.

Other eligible areas include Dorchester, Kent, and Somerset counties.

“Homeownership is an important goal for many families and young professionals and we want to help them achieve this dream,” said Skinner. “We recognize that Maryland has a top notch workforce and we are offering this attractive low interest rate as a strong incentive to these talented individuals and families to buy homes and invest within Baltimore City and other targeted areas around the state.”

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The reduced rate will be offered to all qualified buyers in the target areas for approximately three months, or until the entire $30 million earmarked for this incentive is committed.

In addition to this reduced rate, buyers may qualify for other Maryland Mortgage Program benefits, including help with down payments and closing costs.

Program officials stressed that Garrett County residents do not have to be first-time homebuyers in order to take advantage of the low rate, as purchasers in targeted areas are eligible for a one-time exemption to the program’s first-time homebuyer requirement.

This special promotion also includes incentives for eligible buyers of any foreclosed or short sale property (collectively referred to as the Save-a-Home Loan Progam) in a non-targeted area. The interest rate for this program will be ¾% below the regular Maryland Mortgage Program, with a floor of 3.25% (APR 4.082%) and will only be available for the month of June.

For more information about the Maryland Mortgage Program – especially details on income eligibility, purchase price limits, and the low rate – persons may call the DHCD hot line at 800-638-7781 or visit mmprogram.org, which lists private lending institutions and financial counseling agencies in their areas that can help them become homebuyers.

For a map and more information on targeted areas, one may visit www.mmprogram.org/TargetedAreas.aspx.

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Buying or selling real estate in Garrett County or Deep Creek Lake, Maryland? Call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues!

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Housing Affordability Indices Reach Records in First Quarter

WASHINGTON (May 15, 2012) – Housing affordability conditions for all buyers reached a milestone in the first quarter, according to the National Association of Realtors®.

NAR’s composite quarterly Housing Affordability Index* rose to a record high of 205.9 in first quarter, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. This is the first time the quarterly index broke the 200 mark; recordkeeping began in 1970.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said market conditions are optimal for home buyers. “For those with good credit, we’ve never seen better housing affordability conditions or market opportunities than we see at present,” he said. “Although home prices are stabilizing and sales are rising, some buyers still have to jump through a lot of hoops to convince a lender that they are creditworthy, even for a mortgage that would be well within their means. This is especially true for self-employed buyers.”

Veissi noted home sales would be much higher if lending standards would return to normal.

The index shows the median income family, earning just under $61,000, could afford a home costing $325,500 in the first quarter, which is more than double the national median existing single-family home price of $158,100. The median monthly mortgage principal and interest payment for a median-priced home would take only 13.5 percent of gross income.

A companion index measuring the ability of first-time buyers to purchase a home also set a record, with the first-time buyer index reaching 135.8 in the first quarter.

Assumptions for the first-time buyer index include a lower income, at 65 percent of median family income, a starter home costing 85 percent of the median price, and a downpayment of 10 percent. This index means the typical entry-level buyer could afford a home costing $182,500, which is well above the overall median price.

“It’s never been easy to buy a first home because of the cash required for downpayment and closing costs, but conditions for first-time buyers who are able to get a mortgage have never been better,” Veissi explained.

Most first-time buyers choose a loan with a lower downpayment, often an FHA-insured loan with 3.5 percent down, and some use the VA program with no downpayment.

Both home prices and mortgage interest rates are expected to edge up modestly as the year progresses, but housing affordability will remain very favorable with the median-income household well positioned to afford a median-priced home. For all of 2012 the index is projected to set an annual record, averaging 191 for the year.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

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Affordable rentals tough to come by in state

Maryland among least-affordable states; waiting lists for housing vouchers boast thousands of applicants

by Margie Hyslop, Staff Writer

As a senior information specialist working for the Department of Health and Human Services, Christina Bradshaw has what a housing official called a “good job.”

Yet, Bradshaw said after a divorce she faced the choice of living in a community she could afford or one that was a good environment for her three kids.

Bradshaw wanted to continue living in the house she rents in Silver Spring, a challenge given that in Maryland the average hourly wage needed to pay for a modest two-bedroom apartment is $24.76. That’s the fourth-highest figure in the nation, behind Hawaii, the District of Columbia (at $28.10) and California, according to “Out of Reach 2011,” the National Low Income Housing Coalition’s latest report on obstacles that low-wage workers face in their search for housing.

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>Housing counselors will provide help at HRDC

>From Staff Reports
The Cumberland Times-News Mon Jun 20, 2011, 11:04 PM EDT

CUMBERLAND — Assistance for people facing problems with difficulty paying mortgage payments is being targeted by agencies in Allegany County that serve low-income residents and seniors.

Allegany Law Foundation, Allegany County Human Resources Development Commission, Cumberland Neighborhood Housing Services and Western Maryland Legal Aid Bureau are joining to coordinate services to distressed homeowners.

“It is anticipated that in July regular office hours will be available at HRDC with housing counselors to assist the public. Such innovative approaches as providing portal technology to communicate directly with lenders are planned,” said Marcia Conrad, director of Allegany Law.

These agencies intend to also work with Garrett County agencies to provide services there.

“Their collaboration is called the Western Maryland Partnership and is receiving support from Maryland’s Department of Housing and Community Development,” said Conrad.

Sen. George Edwards is sponsoring a foreclosure solutions workshop that will be held from 2 to 5 p.m. Thursday at the HRDC’s Frostburg Senior Center at 27 S. Water St.

The Western Maryland Partnership is encouraging homeowners who are facing foreclosure or are worried about an increased interest rate or have other concerns about their mortgage to receive free one-on-one legal advice and housing counseling assistance at the event.

Last July, 15 families received assistance in a foreclosure solutions workshop in Cumberland.

A woman who attended the event related her experience. “My husband and I were two months behind in mortgage payments. I have MS and am on disability. My husband is retired but was working at Walmart for extra income and supplemental health insurance when he got sick and was laid off. Senator (Ben) Cardin’s staff encouraged me to go to the workshop and I am so glad I went there. It is the best thing I ever did. Carrie Forrester, the attorney who assisted us, was great. She was able to reach a modification with Bank of America and that brings our payments current and the interest rate down to 5 percent.”

Allegany Law and the Bar Association of Allegany County have been working with the Maryland Foreclosure Prevention Pro Bono Project of the Maryland Pro Bono Resource Center of Maryland to plan and staff the event. Homeowners should call 800-396-1274 to register. Registration guarantees a free legal consultation with a volunteer attorney to discuss an individual mortgage situation. The workshop will give participants directions on the next steps to take and where to go for help.

Conrad said workshop participants should bring all materials related to their current and former mortgages, including the loan application, settlement paperwork and lender statements; any foreclosure notices or threats of foreclosure received; and a monthly household income and expense budget.

The Foreclosure Solutions Workshop is free and open to the public. The site is handicapped-accessible. For more information and other assistance with housing problems, call Allegany Law at 301-722-3390.

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If you or someone you know is considering buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! I take great pride in referrals, and I assure you, I will take great care of your friends, family & colleagues! As member of the Garrett County Board of Realtors, I can assist you with ANY listed property, regardless of the listing broker.

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Category: housing

Md. Mortgage Program Unveils Special Home Buying Incentives For Garrett Co.

Housing Affordability Indices Reach Records in First Quarter

Affordable rentals tough to come by in state

>Housing counselors will provide help at HRDC

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