Loan Program
Healthy Neighborhoods, a Baltimore City organized program, has
established a loan program to support the acquisition and/or
rehabilitation of owner occupied homes on target blocks of the
Patterson Park neighborhood.
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.
An 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 $20,000 with an upward loan adjuster
for larger homes available to homeowners in the ten Healthy
Neighborhoods
For more information on the HNI Program go to
www.healthyneighborhoods.org.
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.
Want more information about the Healthy Neighborhoods Loan program, simply email us and we will answer all your questions.