By Tashi McQueen, AFRO Political Writer,
Report for America Corps Member,
tmcqueen@afro.com
More than 50 first-time homebuyers in Baltimore have received a $10,000 incentive to help with the cost of purchasing their homes. The incentive increased on May 1 after Mayor Brandon Scott doubled the incentive from $5,000 to $10,000.
Natasha Carter and Ashley Johnson, a Cherry Hill native, are just two of those recipients who have received the incentive.
Carter and Johnson were advised to enlist in the program through their loan advisors. Johnson’s lender notified her of the grants she qualified for through the program, and so began her journey.
Scott’s growth plan for 2030 fueled this decision which was created to reverse the declining population in Baltimore City, especially among “middle-income” Black homeowners.
“People say it’s so hard to get a house,” said Johnson. “Not if you have the right people supporting you!”
The First-Time Homebuyers Incentive Program is funded with Community Development Block Grant funds and offers down-payment help and closing cost support for first-time homebuyers. It is specially funded by Maryland’s Department of Housing (HUD).
According to the U.S. Census and Pew Research Center, Black buyers pay more on average and have lower median incomes overall. These are the added adversities against Black people in getting homes., which makes programs like the first-time homebuyers program so important.
The DHCD administers the program and reports that 100 more $10,000 incentives are available for homebuyers in the 2022 fiscal year.
“I have no real complaints with the process– it was quicker than expected and informative,” said Johnson.
Though she had positive reviews of the program and the process, Johnson said that she did notice “DHCD’s program was understaffed and the counseling sessions were too compact.”
Micahel Guye, director of homeownership at DHCD, explained the first step for applying to the first-time homebuyers program. He said that residents should find a city-certified housing counselor immediately.
Perspective homebuyers will then go through a required counseling process. They will also need to receive a certificate of their counseling to receive said incentives before closing on a house.
“If they close before being approved with counseling, they are not eligible for incentives,” said Guye.
“The longest part of the process could be considered the counseling service which can take about three months to complete,” said Tammy Hawley, chief of strategic communications. “This depends on the time it takes to close on a house in general.”
For Johnson, things went abnormally quick, but for Carter, the process had multiple delays.
“I had some delays because funds ran out,” said Carter. “My loan advisor pushed along the process, though, and I was able to receive the funds.”
Buyers can receive over $30,000 overall if they qualify for all of the additives, but some restrictions exist. Buyers must make at or below 79,000 for a four-person household and $55,950 for a single household. The owner must also reside in the property– they can’t buy it with the intention of someone else living there.
Even so, Hawley recommends everyone start the program– even if they think they won’t buy a house soon.
“I encourage buyers to hop on this program ASAP,” said Hawley. It’s what I wished I would have done – the market moves fast.”
According to Guye, each qualifying additive awards homebuyers another $5,000 – except living in an Impact Investment Area, which can award you another $10,000.
“I received the impact area incentive after I put in an offer on the house,” said Carter. “I didn’t realize it came with extra incentives.”
Carter now owns a home in the Broadway East community of Baltimore.
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