Overcoming credit challenges on the road to homeownership

About the Program

Category: Human Services (Best in Category)

Year: 2021

Howard County, Maryland’s Moderate Income Housing Unit (MIHU) Program is an inclusionary zoning program that requires developers of new for sale housing units to provide 10-15% of the units to the county’s Department of Housing and Community Development (DHCD) to be sold to moderate income households at an affordable sales price. DHCD accepts MIHU applications from income eligible residents during four open enrollment periods each year. Applicants earning up to 80% of the county’s Area Median Income (HC AMI), $117,730 in 2021, can apply to the MIHU program to be qualified to purchase new homes at affordable MIHU prices as they become available. Income-qualified applicants may not be able to qualify for new homes due to poor credit histories or low credit scores. DHCD designed the “Think Like A Lender” program to provide a path forward for credit-challenged applicants to improve their credit and qualify for affordable homeownership units. The program is offered 3 – 4 times per year. Each class can accommodate 16 participants. Participants must attend all 6 sessions to receive a certificate of completion. Since 2017, 10 graduates of the program have purchased MIHU homes; 6 have purchased market rate homes and 8 are prequalified for a mortgage and searching for homes. 2 graduates were able to improve their credit score and qualify to rent MIHU apartments. DHCD will continue to offer this program to credit-challenged MIHU applicants to help them purchase their first home and enjoy the many benefits of homeownership in Howard County.