Maryland: Mortgages For BRAC Families

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Maryland: Mortgages For BRAC Families

In order for the families which are relocating to Maryland, because of BRAC, to have a smoother transition, the State of Maryland has announced an initiative which encourages homeownership.

The initiative provides $100 million in mortgage loans through the Maryland Mortgage Program (MMP) to homebuyers in the 10 counties that will be most impacted by the U.S. Military's Base Realignment and Closure (BRAC) activities at interest rates of 4.5%.


Lt. Governor Brown Announces Initiative Encouraging Homeownership, Lowers Statewide Interest Rate

Outside a single family home currently on the market, Lt. Governor Anthony G. Brown, joined by Maryland Department of Housing and Community Development (DHCD) Secretary Raymond A. Skinner, members of the Maryland Bankers Association and the Maryland Association of Realtors, announced a new homeownership initiative aimed to provide much needed relief in Maryland's housing market and protect home values in BRAC-impacted communities. The initiative provides $100 million in mortgage loans through the Maryland Mortgage Program (MMP) to homebuyers in the 10 counties that will be most impacted by the U.S. Military's Base Realignment and Closure (BRAC) activities. Lt. Governor Brown and DHCD Secretary Skinner also announced that statewide MMP interest rates will be lowered to 4.5 percent, putting the state's interest rate on par with national rates.

"For families relocating to Maryland due to BRAC, a real concern for them is finding a new home, a new neighborhood to raise their kids in, and we want to provide them with the necessary tools and programs to make informed decisions concerning their move," said Lt. Governor Anthony G. Brown, chairman of the Governor's Subcabinet on BRAC. "With this new Maryland Mortgage Program 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, and 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 initiative, $100 million in MMP assistance will be set aside specifically for mortgages in 10 BRAC-impacted jurisdictions: Anne Arundel, Baltimore, Carroll, Cecil, Frederick, Harford, Howard, Montgomery, Prince George's Counties, and Baltimore City. Through the initiative, DHCD estimates it will be able to provide approximately 625 mortgages. During the press conference, Brown noted that this program, while targeted to BRAC-impacted jurisdictions, is open to all Maryland homebuyers purchasing homes in those 10 jurisdictions.

The Obama Administration's New Issue Bond Program (NIBP) makes this initiative possible. The NIBP was designed to support Housing Finance Agencies, like DHCD, gain needed access to long-term capital through the U.S. Treasury. DHCD is able to raise capital under the NIBP 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 MMP borrowers.

"By lowering Maryland Mortgage Program interest rates, we're ensuring that the program remains a viable mortgage product in a competitive marketplace," said DHCD Secretary Raymond A. Skinner. "The combination of lower rates and the $100 million BRAC set aside, 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."

MMP is the State of Maryland's flagship mortgage assistance program, featuring a variety of low-interest, fixed-rate mortgage loan options primarily targeted to first-time homebuyers. For more than 30 years, MMP has provided Maryland's families with reliable and flexible mortgage loans. The program is administered by DHCD's Community Development Administration (CDA) and 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, enabling potential homebuyers to receive MMP assistance through local banks. Since taking office, the O'Malley-Brown Administration has helped nearly 5,250 families purchase a home through the program.

Potential homebuyers who participate in MMP are also eligible for an assortment of down payment and closing cost assistance programs like the Downpayment and Settlement Expense Loan Program (DSELP), which offers up to $3,500 in assistance in the form of a zero percent deferred loan. MMP borrowers also may receive additional down payment and closing cost assistance through several DHCD matching programs, including the employer matching program House Keys 4 Employees, the Builder/Developer Incentive Program, and the Community Partner Incentive Program. All of these down payment programs can be combined, providing the prospective homeowner a higher level of assistance.

BRAC is the single largest source of economic growth in Maryland since the end of World War II. Between now and 2015, BRAC will create as many as 60,000 permanent jobs, along with tens of thousands of construction jobs to prepare the transportation, environmental and house infrastructure to accommodate the arrival of nearly 24,000 new households.


Contact Ron Trzcinski for more details at 410-935-5844 or at


Comments (5)

Jacob Jamison
Zenith Realty - Joppa, MD
Exclusive Buyer Representation


Thank you for sharing.  This should be a good incentive for BRAC relocating families.

Jul 12, 2010 08:28 AM
Joseph Coolie
Zenith Realty - Parkville, MD


Good information.  This should spur some relocators to more seriously consider purchasing now instead of waiting.

Jul 13, 2010 08:58 AM
Floyd Franklin
Zenith Realty - Reisterstown, MD


Thank you for posting.  Buyers should understand that this is for anywhere in the state.

Jul 15, 2010 06:54 AM
Jacob Jamison
Zenith Realty - Joppa, MD
Exclusive Buyer Representation


Rates are already this low.  Will they keep them low as other rates go up?

Jul 16, 2010 05:53 AM
Eddie Matthew
Zenith Realty - Perry Hall, MD


If the banks will; not lend the money then I guess some one else will.

Jul 22, 2010 12:33 PM