Maryland Homebuyers to Benefit from $200 Million Bond Sale for Affordable Housing

According to the Maryland Department of Housing and Community Development, the agency has successfully issued a $200 million mortgage revenue bond designed to bolster the Maryland Mortgage Program. This significant financial undertaking, facilitated through the department’s Community Development Administration’s Residential Revenue Bond program, is set to provide funding for approximately 700 affordable mortgage loans, marking a substantial investment in making homeownership more accessible for Maryland residents.

The Maryland Mortgage Program, a long-standing initiative in the state for over four decades, primarily assists first-time homebuyers in acquiring their own homes. The program offers a variety of mortgage products, including innovative options like Maryland SmartBuy, which specifically addresses student loan debt for prospective homeowners, and mortgages that can be combined with renovation loans to finance both the purchase and necessary improvements of a property. The recent bond issuance includes both tax-exempt and taxable bonds, which will enable the department to continue offering these loans at competitive interest rates, potentially leading to annual savings for Marylanders seeking to purchase a home.

This financing strategy is designed to maximize the impact of limited state capital by providing interest rate subsidies and offering assistance with down payments and settlement expenses. By leveraging its established bond issuing program and engaging with private capital markets, the department aims to secure additional resources for down payment assistance, thereby making homeownership a more attainable goal for numerous low- and moderate-income households across the state. All bonds issued in this sale have been designated as social bonds, underscoring their commitment to generating positive social outcomes, and align with international sustainable development goals.

The Maryland Mortgage Program actively collaborates with various governmental and business organizations to help borrowers secure additional assistance for down payments and closing costs, addressing a primary obstacle to homeownership for many. These partnerships often extend to local jurisdictions, where state and local resources are combined to further reduce costs and encourage homeownership in specific communities. In recent years, the program has demonstrated considerable success, issuing up to $1 billion in mortgage loans annually over the past five years, a testament to its effective products and marketing efforts. Residents interested in learning more about the program or exploring available mortgage options can find detailed information on the Maryland Mortgage Program website.

Article by Mel Anara, based upon information from the Maryland Department of Housing and Community Development.

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