Reinvest Baltimore homebuyers: 3.5% rate savings and up to $20,000 DPA

Baltimore homebuyers looking at renovated, state-funded properties may qualify for two new Reinvest Baltimore incentives—if the specific home is one of the participating, program-eligible listings.

On July 1, 2026, the Maryland Department of Housing and Community Development (DHCD) announced the incentives for Baltimore City homes redeveloped using State funding, with the goal of turning vacancy-reduction work into homeownership opportunities.

Two incentives, tied to select state-funded renovated homes

DHCD says the incentives are operated by Healthy Neighborhoods and Neighborhood Housing Services of Baltimore, supported by a combined $4.45 million in State Revitalization Program funding. All homes redeveloped using funding through the Department’s Baltimore Vacants Reinvestment Initiative are eligible for both incentives—but eligibility depends on whether a particular home was part of that state-funded redevelopment work.

DHCD’s announcement breaks the package into two separate benefits:

• Reinvest Baltimore Rate Savings: designed to reduce mortgage rates to just 3.5% for eligible buyers purchasing select recently renovated homes through Healthy Neighborhoods’ Special Purchase Program.
• Reinvest Baltimore Down Payment Assistance (DPA): up to $20,000 for qualifying buyers toward down payment and/or closing costs in targeted Baltimore neighborhoods.

Rate savings: how buyers get to a 3.5% target (for eligible listings)

Healthy Neighborhoods says its Special Purchase Program is for homebuyers purchasing recently renovated, move-in-ready homes from HNI-approved developers within Healthy Neighborhood boundaries and other authorized locations.

For select properties only, the program is available with the State of Maryland’s Reinvest Baltimore Rate Savings grant. Healthy Neighborhoods describes the mechanism like this: using the grant proceeds, it buys mortgage discount points on behalf of the borrower to reduce the borrowing rate to just 3.5%.

To see what’s currently eligible, Healthy Neighborhoods directs buyers to its Properties For Sale list (it says the site is updated monthly).

DHCD says the available rate-savings funding is expected to support more than 75 homebuyers.

Down payment help: up to $20,000, forgivable over 5 years

NHS Baltimore’s Reinvest Baltimore Down Payment Assistance program offers up to $20,000 to help cover down payment and closing costs for a qualified home in Baltimore.

Key NHS DPA terms include:

• Up to $20,000 in assistance
• Funds may be used for down payment or closing costs
• Open to all buyers (not limited to first-time homebuyers)
• No income limits
• Assistance is forgivable over 5 years, with 20% forgiven each year you live in the home as your primary residence

NHS Baltimore also lists specific requirements before and during the purchase process, including:

• Complete a homebuyer workshop and one-on-one counseling before making an offer (NHS says there are no exceptions)
• Use a fixed-rate mortgage (and NHS says the program does not allow ARMs)
• Contribute at least $1,000 toward the purchase
• No cash purchases
• Loan must be under $667,000
• Use an NHS-approved lender and occupy the home as a primary residence

DHCD says DPA funding is expected to support at least 150 homebuyers.

What Baltimore buyers should do first

The fastest way to check whether the incentives apply is to start with the eligible-home lists and talk with the partner administering the incentive you want to use:

• For the 3.5% rate savings option: start with Healthy Neighborhoods’ Properties For Sale listings, since the rate savings is for select properties only.
• For the up to $20,000 DPA option: connect with NHS Baltimore early so you can complete required counseling/workshop steps and confirm program-financing rules before you make an offer.

Caution: funding and eligibility rules aren’t automatic

These benefits are tied to participating homes and to the administering partners’ eligibility and financing requirements. DHCD and the partners both indicate limited funding, and NHS Baltimore’s terms include steps that must happen before an offer. If you’re considering a purchase, contact the administering partner early—don’t wait until underwriting is underway.

Sources

• Maryland DHCD press release (Reinvest Baltimore incentives announcement, July 1, 2026)
• Maryland Mortgage Program (MMP): Reinvest Baltimore homeownership page
• NHS Baltimore: Reinvest Baltimore Down Payment Assistance (DPA) terms
• Healthy Neighborhoods: Properties for Sale (Reinvest Baltimore eligible homes listing)

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