Housing Week Day 1 Recap: Credit and Credit Repair
We’re recapping all our tips from yesterday’s first day of Housing Week–a weeklong tip series aimed to help prospective buyers rest easy knowing they have all the info they need to understand the home buying process.
What is credit:
Credit Scores are numbers between 300 and 850 that let lenders know your credit worthiness. The higher the score the more reliable you are as a borrower.
Do you have bad credit?
No credit, no problem?
If you have any questions about credit, your finances, or would like some personalized guidance, contact Sonya Dease, our housing and financial counselor. She can be reached by phone (410.282.0261 ext 107) or email (Sonya@DundalkUSA.org). You can also schedule time for a virtual meeting. Her services are completely free, thanks in part to existing sponsors and donors.
Housing Week Day 2 Recap: Building Stability
Renting Vs. Owning
Housing Week Day 3 Recap: Grants and Loans
When it comes to loans, you have options. The two most common loan terms you’ll encounter are FHA (Federal Housing Administration) and Conventional. FHA loans are insured by the government and are a great way for first time home buyers to become home owners. Conventional loans are originated and serviced by private mortgage lenders (think banks, credit unions and other financial institutions). Each financial institution will have their own credit score requirements and down payment needs. They might even have additional incentives or offer up to 100% financing. Financial institutions might even have their own grant program, like PNC’s $1,500 Grant..
If you’re wondering what type of mortgage would be best for you, contact a housing counseling agency or a lender to discuss your options.
The Community Development Block Grant (CDBG) Homeownership Assistance Program provides down payment and closing cost assistance to eligible first-time homebuyers purchasing a home in Baltimore City.
Eligibility and Limitations
- You must earn a homeownership counseling certificate before making an offer on your home.
- You must live in this home as your primary residence.
- You must contribute at least $1,000 of your own money to your home purchase.
- Your mortgage amount cannot exceed the current FHA mortgage limit of $517,500 for a single-family home.
- You must apply and be approved prior to closing on your home. Program funds are not retroactive.
- Household income cannot exceed 80% AMI
- First-time homebuyers only
- Requires a “Housing Quality Standard” (HQS) inspection
- Fixed-rate mortgages only. Co-signers, cash sales, and owner-financing are not permitted.
SELP (Settlement Expense Loan Program) is a forgivable loan program for residents below 80% of the average median income. If you’re eligible for self you could receive up to $10,000 to help pay closing costs. Home buyers must live in their home for 15 years in order for their loan to be forgiven.
Dundalk Renaissance Home Buyer Grant
We like to say our grant picks up where SELP leaves off. Our grant is targeted for home buyers earning between 80-120% of the average median income. Check out our chart and see where you fall.
If you’re eligible for our grant we require that you attend our Be a Buyer Workshop, attend a Main Street event (non COVID times), receive one-on-one housing counseling (through us or a housing counseling agency) and get your home buyer certification.
To finalize your application process and verify your income, you must submit tax returns from the past 2 years, an ID (if you have one) and 2 months of paystubs to our housing initiatives manager, Tasha Gresham-James (Tasha@DundalkUSA.org).
Housing Week Day 4 Recap: Home Buyer Pro Tips
- Attic & ventilation to attic construction.
- Electrical service panels, fixtures, switches, receptacles and major appliances.
- Exterior gutters, downspouts, roofs, walls, chimneys, driveways, walkways, patios, doors and property drainage.
- Foundations, wall, supports, columns, beams, flooring and structure of the home.
- Heating and air conditioning, ductwork and vents.
- Interior walls, ceilings, windows, doors and flooring.
- Life expectancy on all mechanicals.