Veterans Buying Their Homes in Prince George’s County To Get Help with Downpayment Assistance From Maryland Department of Housing and Community Development

Plan Aims to "Serve Veterans and Save Neighborhoods"

CROWNSVILLE, MD (January 21, 2010) - Lt. Governor Anthony G. Brown and Maryland Department of Housing and Community Development (DHCD) Secretary Raymond A. Skinner announced the launch of a special initiative to help veterans purchase previously foreclosed property within designated areas in Prince George's County. The goal is to regenerate the tax base for approximately 50 vacant foreclosed properties in the county.

"I applaud the efforts DHCD has taken to do something tangible that shows the appreciation of a grateful nation and a grateful state for those who unselfishly serve their country," said Lt. Governor Brown. "This program will, indeed, 'Serve Veterans and Save Neighborhoods.'"

Brown, a Colonel in the U.S. Army Reserves, is the nation's highest-ranked elected official to have served a tour of duty in support of Operation Iraqi Freedom. He leads the O'Malley-Brown efforts to improve services for veterans across the state.

"This initiative is a way for us to take what continues to be negative housing news and turn it around by supporting this special group of homebuyers who want to invest in and revitalize some of the hardest hit areas of Prince George’s County," said Secretary Skinner. "We want to empower these homebuyers and reinvigorate these communities."

DHCD is undertaking a special initiative for lower income Veterans purchasing a vacant foreclosed property within designated areas in Prince George’s County.  The Department will use $2.175 million of our federal Neighborhood Stabilization Program (NSP) funds along with DHCD’s Maryland Mortgage Program (MMP) to fund this initiative.  Prince George’s County is an ideal jurisdiction to pilot this concept, because of the large concentration of veterans along with many distressed areas caused by the recent foreclosure crisis.

With the use of DHCD’s $2.175 million of NSP funds, nearly 50 vacant, foreclosed properties will be sold to Veterans who will become property taxpayers in Prince George’s County. This initiative is especially targeted to families at or below 50% of the Area Median Income (AMI).

This initiative requires a minimal cash outlay of $1,000 by the homebuyer. All necessary closing costs plus the 20% down payment will be provided in the form of a zero percent deferred loan to ensure that monthly mortgage payments are affordable to the targeted families.  The initiative also will offer the homebuyers additional funding on a case-by-case basis if repairs are needed to help ensure the home meets at least minimum property standards.  In addition to NSP funds, DHCD will be able to leverage another $7 million of tax-exempt mortgage revenue bond funds as part of this initiative in the form of an MMP first mortgage loan that has a 40 year term and requires no mortgage insurance.

Eligible areas for home purchase are the designated zip codes in Prince George’s County. Click here for detailed map.

For nearly 30 years, the Maryland Mortgage Program 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. To learn more about homeownership through the Maryland Mortgage Program, visit www.mmprogram.org or call 1-800-638-7781.

The Maryland Department of Housing and Community Development works with partners to finance housing opportunities and revitalize great places for Maryland citizens to live, work and prosper. To learn more about DHCD’s programs, visit www.mdhousing.org.

News updates also are available by following DHCD on Twitter (www.twitter.com/MDHousing) and Facebook (www.facebook.com/marylandhousing).

For more information:

Jacqueline Lampell
Director, Office of Communications and Marketing
410-514-7704
lampell@mdhousing.org

Rosa Cruz
Deputy Director, Office of Communications and Marketing
410-514-7712
cruz@mdhousing.org

Andy DeVilbiss
Public Information Officer, Office of Communications and Marketing
410-514-7710
devilbiss@mdhousing.org