Prince George's County housing officials said yesterday that $37 million in low-interest loans will be made available to about 500 first-time home buyers in the second round of a federally backed mortgage program.
The program, administered by the county housing authority, got off to a shaky start the first time it was offered last year. Then, $28 million in low-interest loans were already committed when county officials announced the program, County Executive Parris N. Glendening acknowleged.
This time, Glendening said, no money has been committed. He said that applications for the 10.9 percent, 30-year term mortgages will be available to the public starting tomorrow at 10 a.m. at the housing authority offices in Hampton Mall, on Central Avenue near the Beltway.
Applicants, who need not be current Prince George's County residents, must use the house as their sole residence. The purchase price may not exceed $98,000.
All but $10 million of the program money has been earmarked for new home financing in developments located throughout the county. The rest is for existing houses.
An eligible buyer purchasing a $70,000 home through this program would save about $174 in a month over what he would otherwise pay under the prevailing interest rate of 14 percent, said housing authority director Major Riddick.