The CityLIFT Program Explained

Many people would rather own a home than rent one.  The choice is easy; you are investing your hard earned money into home equity rather than a putting it into a landlord’s pocket.  But the truth of the matter is that many people have been impacted by our economy’s financial crisis and no longer have sufficient savings for a down payment on a home.  For this reason, Neighborhood Housing Services of Baltimore has implemented CityLIFT. 

The CityLIFT program provides up to $15,000 in down payment assistance or closing cost funds to eligible homebuyers who are purchasing a home within Baltimore’s city limits.  

Although Wells Fargo partnered with NeighborWorks America to provide the funding for this grant, eligible homebuyers do not have to go through Wells Fargo to issue the loan.  In fact Carrollton Bank is now an approved CityLIFT lender.

CityLIFT assistance requires obtaining a first mortgage.  A first mortgage is just a different type of mortgage that has priority over all the other claims of the property.  It does not mean that you have to be a first time homebuyer. If you currently own a home, you must sell it before closing on your new home with CityLIFT assistance.  Your current home cannot be rented or leased. 
 
Eligible CityLIFT homebuyers must be at or below 120% of the Area Median Income for Baltimore City.   There are different income limits depending on the size of your household.  In addition, any borrower on the mortgage must also be an occupant of the house.   

CityLIFT funds are structured as a “soft second” mortgage.  It is a 0% interest loan which is forgiven 20% each year for 5 years.  This is why part of the program requirements are that homebuyers must agree to maintain the home as their primary residence for at least 5 years.

In order to close on the house, potential CityLIFT participants must complete homebuyer education through a third party counseling agency that has been approved by the Department of Housing and Urban Development (HUD).  Some of the topics that are covered in the CityLIFT counseling session are budgeting and credit, financing a home, shopping for a home, and maintaining a home.

If you believe that you qualify or are interested in learning more about CityLIFT assistance please contact our team and we are happy to assist you. You can contact us by phone, 410.491.0200, or email, sepstein@carrolltonbank.com.

You can find a packet that explains the program here.