Housing Rehabilitation Loan Programs

Detailed regulations, policies and procedures govern the housing rehabilitation loan programs. For additional information or to schedule an appointment to file an application, contact the Housing Rehabilitation Program staff.

SINGLE FAMILY REHABILITATION LOAN PROGRAM

The Single Family Rehabilitation Loan Program is designed to assist income eligible homeowners with low cost or no cost loans to correct hazardous conditions, eliminate safety hazards, repair or replace major systems, correct interior and exterior deficiencies, energy improvements, modifications for persons with disabilities and eliminate lead based paint hazards.

An eligible property is a single-family, owner-occupied dwelling in Baltimore County.

Interior and exterior deficiencies including: repairs to major systems (heat, electrical and plumbing), elimination of safety hazards, installation of energy conservation features, modifications for persons with disabilities and removal of lead-based paint hazards.

Eligibility is limited to those households where income does not exceed 80 percent of the area median, adjusted by family size.

Other requirements:

  • One loan allowed per household, per lifetime of ownership.
  • All persons listed on the Deed must agree to the loan terms and will be required to sign closing documents.
  • Mortgage and property tax payments must be current and the title to the property must be clear of liens and judgments.
  • The property must be insured to cover all indebtedness.

  • Repairs must be made by a licensed, insured contractor.

     

  • Loan payment may be deferred or may be repaid in monthly installments at a low interest rate. Debt must be repaid upon discontinuance of owner occupancy or sale of the home.
  • Closing and recording costs may be included in the loan.

MARYLAND HOUSING REHABILITATION LOAN PROGRAM 

The Maryland Housing Rehabilitation Loan Program (MHRP) is designed to assist income eligible homeowners with low cost or no cost loans to correct hazardous conditions, eliminate safety hazards, repair or replace major systems, correct interior and exterior deficiencies, energy improvements, modifications for persons with disabilities and eliminate lead based paint hazards. This program is funded by the Maryland Department of Housing and Community Development.

An eligible property is a single-family, owner-occupied dwelling or a multi-family property with up to four rental units in Baltimore County.

Interior and exterior deficiencies including: repairs to major systems (heat, electrical and plumbing), elimination of safety hazards, installation of energy conservation features, modifications for persons with disabilities and removal of lead-based paint hazards. Some general improvements may be allowed.

Eligibility is limited to those households where income does not exceed 80 percent of the area median, adjusted by family size.

Other requirements:

  • Borrower must have a satisfactory credit rating.
  • All persons listed on the Deed must agree to the loan terms and will be required to sign closing documents.
  • Mortgage and property tax payments must be current and the title to the property must be clear of liens and judgments.
  • The property must be insured to cover all indebtedness.
  • Repairs must be made by a licensed, insured contractor.

  • Secured debt, including the MHRP loan, may not exceed 110 percent of the after-rehab value as determined by assessment or appraisal.
  • The interest rate on a MHRP loan is determined on the basis of income and ranges from zero to six percent. The term is 20 years. Very low-income families may qualify for a deferred payment loan. The loan must be repaid upon discontinuance of owner occupancy or sale of the home.
  • There is an administrative fee which may be included in the loan along with closing and recording costs.

An eligible single-family, owner-occupied dwelling or rental property. The unit must be in need of lead hazard reduction activity, constructed prior to 1950, structurally sound upon completion of the lead hazard reduction activity and if a rental unit, must be registered with the Maryland Department of the Environment (MDE).

Door and window treatments and replacement, floor treatments, paint removal, stabilization and repainting, encapsulation, enclosure and specialized cleaning.

Must own and occupy the dwelling to be repaired as a principal residence or as residential rental. There are no income limits for this program.

Other requirements:

  • Borrower must have a satisfactory credit rating.
  • All persons listed on the Deed must agree to the loan/grant terms and will be required to sign closing documents.
  • Mortgage and property tax payments must be current and the title to the property must be clear of liens and judgments.
  • The property must be insured to cover all indebtedness.
  • Repairs must be made by a licensed, insured contractor.

  • Assistance is provided in the form of a grant or loan and is based on the applicant’s ability to repay.
  • Maximum assistance may not exceed $25,000 per unit.
  • The interest rate on a LHRP loan ranges from zero to six percent. The term is 20 years.
  • Fees apply and may be included as part of the loan. Match requirements may apply.