Prince George’s County - Home buyers Down payment Assistance (2014, mortgage)

[Sampg1]

$100 Million Mortgage Initiative for Homebuyers in Prince George

A very good news but wondering if there is any income restriction on it, from previous programs county always set income restriction.

Wouldn't it be great if the county try to attract more of high income earners as well, for example if u give 10k for a 1 person household making say 100k as a down payment, the county will get his money back in 2/3 years in the form of tax.
I'm just wondering.... any thought?

[pokeable]

Eligibility

Yes, there are income restrictions, but actually pretty generous.

A bit onerous that the entire state's taxpayers are subsidizing people making up to $128K. Especially folks who may not be as well-off as the MD suburbs.

[bufflove]

Originally Posted by pokeable

Eligibility

Yes, there are income restrictions, but actually pretty generous.

A bit onerous that the entire state's taxpayers are subsidizing people making up to $128K. Especially folks who may not be as well-off as the MD suburbs.

True, but if they aren't well off/live in a rural county then they're not paying as much in taxes as they receive in benefits, anyways.

[Sampg1]

Originally Posted by pokeable

Eligibility

Yes, there are income restrictions, but actually pretty generous.

A bit onerous that the entire state's taxpayers are subsidizing people making up to $128K. Especially folks who may not be as well-off as the MD suburbs.

The point is if PG attracts more high income ppls by giving just $10k, just as an incentive, wouldn't it be worth it, coz down the road Pg will get it back as a tax, property value increase and in many other ways ...
In this case it shouldn't be called assistance but a smart marketing/promotion by PG.

The only question would be will high earning household be attracted by free $10k, I would say yes they will ..

[adelphi_sky]

Originally Posted by Sampg1

The point is if PG attracts more high income ppls by giving just $10k, just as an incentive, wouldn't it be worth it, coz down the road Pg will get it back as a tax, property value increase and in many other ways ...
In this case it shouldn't be called assistance but a smart marketing/promotion by PG.

The only question would be will high earning household be attracted by free $10k, I would say yes they will ..

Exactly. Other states do the same thing to attract homeowners to their state. The more taxpayers they get on their roles, the better the revenues over the long run. That homeowner will shop in the state. That homeowner will potentially work in the state, etc.It's definitely not a subsidy, but an incentive.

This is the same thing as business incentives given to companies that locate in the state. The believe is that the return given by taxes and jobs over a number of years is more than the upfront cost to the state.

[pokeable]

Originally Posted by Sampg1

The point is if PG attracts more high income ppls by giving just $10k, just as an incentive, wouldn't it be worth it, coz down the road Pg will get it back as a tax, property value increase and in many other ways ...
In this case it shouldn't be called assistance but a smart marketing/promotion by PG.

The only question would be will high earning household be attracted by free $10k, I would say yes they will ..

The point is that this subsidy is being offered primarily through the Maryland Mortgage Program, which is a state subsidized program. PG may be kicking in an additional benefit, but the requirement is that the initial loan come through MMP to get the down payment subsidy.

FWIW Folks in Howard (myself) and Montgomery are subsidizing people who make up to $128K on their down payment in PG homes.

Would agree that this program is good marketing for PG if they paid for the entire bill, I'm a bit irritated that the rest of the state is helping fund this program as a sop to PG County politicians.

[justtitans]

Originally Posted by pokeable

The point is that this subsidy is being offered primarily through the Maryland Mortgage Program, which is a state subsidized program. PG may be kicking in an additional benefit, but the requirement is that the initial loan come through MMP to get the down payment subsidy.

FWIW Folks in Howard (myself) and Montgomery are subsidizing people who make up to $128K on their down payment in PG homes.

Would agree that this program is good marketing for PG if they paid for the entire bill, I'm a bit irritated that the rest of the state is helping fund this program as a sop to PG County politicians.

It actually looks like, from looking at the website that it's for the entire state of Maryland, not just PG. Perhaps PG is just one of the few places that is actually marketing the program to draw interest.

[AeroGuyDC]

One component of the housing bust is that people were able to buy homes without a single penny for downpayment. How does subsidizing the downpayment differ from that? Seems like giving people downpayment assistance is recipe for another bust.

[adelphi_sky]

Originally Posted by AeroGuyDC

One component of the housing bust is that people were able to buy homes without a single penny for downpayment. How does subsidizing the downpayment differ from that? Seems like giving people downpayment assistance is recipe for another bust.

Giving people mortgages without down-payments or valid proof of income were done by the banks due to lack of regulation.

This program is different because this is a state incentive program and qualifications of obtaining the mortgage are more stringent due to laws passed sine the recent bust.

[AeroGuyDC]

Originally Posted by adelphi_sky

Giving people mortgages without down-payments or valid proof of income were done by the banks due to lack of regulation.

This program is different because this is a state incentive program and qualifications of obtaining the mortgage are more stringent due to laws passed sine the recent bust.

Ok...so by "more stringent" do you mean within debt-to-income ratios and after front-end/back-end ratios are deemed financially viable? Even then, if a person can't save money for a downpayment, can they really afford a mortgage to begin with?

The ability to save for a downpayment truly is the indicator of how a person handles their finances. I'm not sure this program is as good for the county as it sounds.