Healthy Neighborhoods Purchase & Rehab Loan

What is Healthy Neighborhoods Purchase & Rehab Loan?

Healthy Neighborhoods Purchase & Rehab Loan is a first mortgage for homebuyers in Baltimore, Maryland, administered by Healthy Neighborhoods, Inc.

• The Healthy Neighborhoods Purchase & Rehab Loan is a fixed-rate first mortgage (originated by M&T Bank through HNI's loan pool) for owner-occupants buying and renovating a home on a designated Healthy Neighborhoods target block in Baltimore City. The rate is roughly 1% below prevailing market (floor 3%), no PMI is required, and borrowers may finance up to 110% of the after-rehabilitation appraised value to a maximum loan of $375,000 after contributing 3% of the purchase price plus rehab. It is a 'two-close' construction-to-permanent loan with a maximum 30-year term, and income-eligible borrowers may pair it with the HNI Matching Grant of up to $10,000.
• Fixed rate ~1% below market (floor 3%).
• Finance up to 110% of after-rehab value.
• No private mortgage insurance.
• Low 3% down (purchase + rehab).
• Architectural/design assistance.
• Pairs with Matching Grant up to $10,000.
• Funds both purchase and renovation.
• Funding comes from Healthy Neighborhoods, Inc. loan pool; originated/underwritten by M&T Bank; Maryland Housing Fund pool insurance.

How much assistance does it provide?

Healthy Neighborhoods Purchase & Rehab Loan provides assistance worth 110% of the purchase price, as set by the program.

• Buyer contribution: At least 3% of purchase price plus rehab amount from borrower's own funds (gifts allowed; grants and settlement-expense loans do not count).
• The program can be combined with Healthy Neighborhoods Matching Grant (50% of rehab project cost, up to $10,000).
• Amounts are the program's published maximums, not an offer — Healthy Neighborhoods, Inc. determines any individual award.

Do you have to pay it back?

Healthy Neighborhoods Purchase & Rehab Loan is a first mortgage and is repaid under the terms set by Healthy Neighborhoods, Inc..

• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Healthy Neighborhoods Purchase & Rehab Loan is open to buyers who will live in the home as their primary residence.

What kind of home can it be used for?

Healthy Neighborhoods Purchase & Rehab Loan can be used for Single Family and 2-4 Unit.

• New construction is not eligible.

Where does it apply?

Healthy Neighborhoods Purchase & Rehab Loan serves buyers purchasing in Baltimore, Maryland.

• The program targets specific areas: Designated Healthy Neighborhoods target blocks across 60+ Baltimore City neighborhoods (Abell, Belair-Edison, Charles Village, Cherry Hill, Glen, Highlandtown, Mount Vernon, Patterson Park, Pigtown, Remington, Reservoir Hill, Waverly, others).

How do you apply?

Applications for Healthy Neighborhoods Purchase & Rehab Loan go through Healthy Neighborhoods, Inc., which publishes the current terms and the application steps on its own site.

1. 1

   Contact Healthy Neighborhoods, Inc. to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.