Loan Program
Baltimore City has committed $1 million to match dollar-for-dollar rehab loans made from the Healthy Neighborhoods Loan Pool to eligible borrowers. The maximum match is $10,000. For more information, click here.
Healthy Neighborhoods has established a loan program to support the acquisition and/or rehabilitation of owner occupied homes on target blocks in the ten Healthy Neighborhoods program neighborhoods.
In order to encourage activity in the neighborhoods the loan program has important incentives and innovations including a discounted rate and the capacity to lend in excess of the after rehabilitation value of the property. The Healthy Neighborhoods Loan Program offers three types of loans to borrowers who meet standard secondary market credit standards.
- A PURCHASE/REHAB loan available to people purchasing homes on target blocks
- A REFINANCE/REHAB loan for more substantial improvements which will require refinance of the existing first mortgage on the home available to homeowners on target blocks
- A HOME IMPROVEMENT loan of up to $40,000 available to homeowners within the ten Healthy Neighborhoods
- A FIRST MORTGAGE LOAN to eligible borrowers purchasing formally vacant homes in Belair-Edison developed by St. Ambrose Housing Aid Center and formally vacant homes on target blocks in Patterson Park being developed by the Patterson Park CDC
The Healthy Neighborhoods and their Target Blocks
Target blocks have been handpicked by Healthy Neighborhoods, Inc. and our neighborhood partners as the areas most likely to benefit from the Healthy Neighborhoods program. For a list of target blocks or for more information on the ten Healthy Neighborhoods, click on the links below:
- Belair-Edison
- Charles Village
- Ednor Gardens
- Garwyn Oaks and Hanlon
- Highlandtown
- Greater Lauraville
- Midtown
- Greater Mondawmin
- Patterson Park
- Reservoir Hill
FAQ about HNI Loans
Purchase/Rehab Loans and Refinance/Rehab Loans
Q: How much can I borrow?
A: Up to 120% of the after-rehab value of the house. The ability to borrow more than the value of the house is unique to Healthy Neighborhoods.
Q: What is the interest rate?
A: Purchase/Rehab and Refinance/Rehab loans carry a fixed rate of the Fannie Mae 60 Day Rate minus 100 basis points (1 percentage point). You can find today’s Fannie Mae rate here.
Q: What is the term?
A: 30 years.
Q: What extra costs and charges apply?
A: The neighborhood association may charge a small application fee. In addition, standard closing costs and a 1 point (1% of the loan principal) origination fee apply. There is no mortgage insurance required.
Q: What are the credit requirements?
A: The Healthy Neighborhoods Loan payments must comprise no more than 30% of your total monthly income. Your total monthly debt must make up no more than 40% of your monthly income. We do not consider credit scores but you must have a reasonably good credit history.
First Mortgage Loans
Q: How much can I borrow?
A: The maximum aggregate loan amount will be limited to 100% of appraised value of the property plus closing costs less a 3% investment by the borrower.
Q: What is the interest rate?
A: Permanent loan interest rate will be 100 basis points below the 60-day Fannie Mae Rate as published in the Wall Street Journal, set at time of application at Bradford Bank.
Q: What is the term?
A: 30 years.
Q: What extra costs and charges apply?
A: The neighborhood association may charge a non-refundable screening fee. In addition, the borrower will pay 1 point as a loan origination fee, plus all customary loan closing costs. These fees and customary loan closing costs may be included in the loan if the borrower has met the required cash contribution and loan amount does not exceed maximum program loan to value.
Q: What are the credit requirements?
A: Borrowers must meet Fannie Mae/Freddie Mac standard underwriting guidelines as to credit.
Home Improvement Loans
Q: How much can I borrow?
A: Between $10,000 and $40,000. If you borrow less than $10,000, the rate is Prime plus .5%
Q: What is the interest rate?
A: If you have or plan to open an account at Bradford Bank, the rate will be Prime minus 100 basis points (1 percentage point). Otherwise, the rate is Prime. Loans under $5,000 will carry a rate of Prime plus 50 basis points (.5 percentage points). You can find today’s Prime rate here.
Q: What is the term?
A: 10 years.
Q: What are the extra costs and charges?
A: The neighborhood association may charge a small application fee. Standard recordation and closing costs apply.
Q: What are the credit requirements?
A: Including the Healthy Neighborhoods Loan payments, your total monthly debt must make up no more than 40% of your monthly income. We do not consider credit scores but you must have a reasonably good credit history.
Interested Borrowers
Interested borrowers are encouraged to read the term sheets available under Related Resources (left) and to contact the neighborhood association in their Healthy Neighborhood.
For a full list of online home buying resources, see our Resources page.
Loan Program Resources
Information on credit reports at Freddie Mac