Maryland Mortgage Lifeline
By Joy BreilingLocal Lender Columnist
Apr 7, 2008
Prompted by the increase in defaults and foreclosures across the nation, tougher lender standards have made qualifying for new refinance home loans in Maryland more difficult. In response to the increased foreclosure rates in Maryland, Maryland's Department of Housing and Community Development launched a program that allows certain borrowers to refinance their high-risk mortgages into affordable fixed rate loans.
Maryland's program, called "Lifeline," is aimed at preventing defaults and foreclosures, thereby protecting home values for other home owners. The program allows participating lenders to bundle the new home loans and sell them back to the DHCD, which in turn uses cash from a bond issue to buy the bundled loans. Interest paid by the borrowers pays off the bonds.
The Community Development Administration's (CDA) Lifeline Refinance Mortgage program helps prevent defaults and foreclosures by providing a refinance option to Maryland homeowners who may not otherwise be able to refinance. The program was developed for homeowners facing difficulties after financing their homes with adjustable interest rate loan programs or mortgages no longer affordable due to their financial situations.
In order to refinance using the Lifeline Refinance Mortgage program, you do have to meet specific qualification criteria such as income and loan-to-value. The property being refinanced must also be your primary residence.
If you live in Maryland and are considering a refinance transaction, you can contact Maryland's Department of Housing and Community Development to see if you qualify for the Lifeline program.
About the Author
Joy Breiling has been employed with the mortgage industry since early 1997. During her career, Joy has fulfilled many positions within the industry including Operations Manager of a large Bay Area broker office. She is currently licensed with the California Department of Real Estate and is an active mortgage originator