- The Direct Purchase Program $25,000 to Help You Buy a Home!
- Think You Can't Buy a Home? Think Again! Find out how to find a great home in a great neighborhood!
- Join us at our Home-Buying Event on March 24th! Find a Great Home in a Great Neighborhood at a Great Price
- Healthy Neighborhoods NSP2 Substantial Amendment Substantial Amendment to the Healthy Neighborhoods Neighborhood Stabilization Program (NSP) 2 Substantial Amendment
- The Haunting Debt of Mortgages
September 01, 2008
THE PROJECT
Sometime in late 2006 we began our home renovation project. With the help of Todd Connelly at Trace Architects, we came up with plans for the second and third floors that we love. In early 2007 we turned the plans over to a contractor but by August 2007 things fell through. We went out for new bids in November 2007 and decided to go with Baltimore Green Construction.
We live on a Healthy Neighborhoods target block in the Patterson Park neighborhood. When I first heard about this program, I, like many, thought it was too good to be true. By putting a minimum of $40k into home improvements, which must include exterior improvements, we’re eligible to roll the construction loan and our existing mortgage into a new 30-yr-fixed mortgage at 1% under the published60-day Fannie Mae rate minus 100 basis points (1 percentage point). So we applied and were approved for the program in winter 2008.The next step was to apply for the Maryland Historic Tax Credit. Maryland values its historic properties and Patterson Park is a national historic district. By incorporating some historic elements into the design and maintaining existing historic elements, we're eligible to receive 20% of the rehab costs back as a state income tax credit. Our city tax assessment is "frozen" for 10 years (because of the historic improvements).The house is not in its original form. It had been partially renovated 10 years ago until recently, with my wife and my efforts to revamp the kitchen 2 years ago.The bulk of the work and the most exciting parts are the second and third floors. Whereas the house is setup for 3 master bedrooms, 3.5 bathrooms, the new layout will provide for 4 bedrooms (1 master), 3.5 baths.
