New Purchase Power for Veterans and Military Homebuyers in MD
Effective today, July 1, the Department of Housing and Community Development (DHCD) announced a new initiative that will help make homeownership more affordable – and more accessible – to borrowers who are veterans or active-duty military members.
Under the Maryland Homefront initiative, homebuyers are eligible for a reduced interest rate on a Maryland Mortgage Program loan AND a discount on fees associated with the recently announced Maryland HomeCredit federal tax credit.
According to DHCD, 161 veterans and military families have received more than $35.5 million in mortgage assistance at fixed rates of 3 percent to 3.5 percent since the Maryland Homefront program was first launched in 2012. Under the new version of the Maryland Homefront program, borrowers will receive a 0.25 % interest rate reduction on the current Maryland Mortgage Program interest rate for the program’s conventional and government-insured loans.
In addition, veterans and military families using Maryland Homefront to purchase a home before Dec. 15, 2015 also can take advantage of the Maryland HomeCredit to claim 25 percent of the annual mortgage interest paid as a federal tax credit up to $2,000 for every year the mortgage is outstanding and they live in the home. As part of the Homefront initiative, DHCD will waive its fee for the tax credit, providing additional savings to eligible military homebuyers.
However, any fees charged by private lending institutions may still apply. The homebuyer must get the Maryland HomeCredit at the time they close on their mortgage, and refinances are not eligible. For a list of participating lenders and current interest rates available, check the Maryland Mortgage Program's website: http://mmp.maryland.gov.
If you thinking of buying or selling a home, please call me today at 301-502-2669, email me at dwpettis@aol.com or visit my website: www.diana4yourhomesdesire.com, I am here to serve you; so go ahead, contact me and see for yourself!
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