Maryland Mortgage Program - Down Payment Assistance Program
This state program makes it possible for potential homebuyers to achieve their dream of homeownership through a variety of programs and options that make purchasing and owning a home more affordable.
With home loan programs, the Maryland Mortgage Program is available as either a Government or Conventional insured loan. The government loans can be guaranteed by the FHA (Federal Housing Administration), the VA Department or the US Department of agricultural and rural housing (USDA/R HS). Conventional loans may carry a higher interest rate but private mortgage insurance could result in a lower overall monthly payments.
About the Mortgage Program
This program offers several specialty loans for specific types of borrowers including those with student debt, those purchasing in a particular location or low-income homebuyers. Product enhancements and incentives such as special assistance grants or mortgage credit certificates may also be available for individuals that qualify.
Maryland Mortgage Program 1st Time Advantage
This program offers eligible first-time homebuyers the lowest 30 year fixed interest rate available for a home loan. Mortgage credit certificates may not be combined with other first-time advantage loans. This includes no down payment assistance available but typically offers the most competitive interest rates. This also accompanies a $5000 loan for down payment and closing costs assistance. This second lien has a 0% interest rate and no payments are due for the life of the first mortgage.
Once the first mortgage ends either through repayment, sale or refinance, the second lien is due and payable. This program also comes with a down payment assistance loan equal to 3% of the first mortgage in a 0% deferred second lien.
Maryland Flex Loan Programs
This is a 30 year, fixed-rate home loan accompanied by additional funds for a down payment and closing cost assistance. The assistance or grants are available in the form of no interest, deferred loans or a grant that does not have to be paid back. This offers the most competitive interest rates with mortgage credit certificates. It comes with a $5000 loan for down payment assistance or closing costs and the second lien has a 0% interest. No payments are due for the life of the mortgage unless the first mortgage ends by repayment, refinance, or transfer.
This program is a Flex 3% loan with a down payment assistance loan equal to 3% of the first mortgage or a 3% grant which does not get repaid or a 4% grant equal to 4% of the first mortgage that does not have to be repaid. Eligibility is different for each of these subprograms.
Marilyn's partner match is only available through mortgage premier loans in the form of a no-interest, deferred loan and may be used for down payment and closing cost assistance. This is the most extensive option for mortgage programs. Organizations may include employers making an investment in long-term sustainability, homebuyers and real estate developers, community organizations making efforts to build sustainable neighborhoods as well as local governments attracting new residents to a community.
These programs may offer grants, loans, and other assistance options and because of the wide variety of options, this is definitely something most potential homebuyers should research. Similar to a loan assisted down payment, this additional funding is available as a no-interest, deferred loan from Maryland payable when the first mortgage is fully paid off.
Maryland SmartBuy Program
This program gives homebuyers an opportunity to purchase any property in Maryland that meets the program guidelines while paying off student debt. To qualify, homebuyers must have an existing student debt with a minimum balance of $1000.
This program provides up to 15% of the home purchase price for the borrower to pay off their outstanding student debt with a maximum payoff of $30,000.
Full student debt for at least one of the borrows must be paid off at the time of the home purchase and homebuyers must meet all eligibility requirements. Financing is only available to qualified lenders as well.
To qualify for this type of home loan program homebuyers will need to meet certain criteria through household income requirements and other financial situations.
- Potential homebuyers must be 18 years of age and have a valid Social Security number. US citizenship is not required to be eligible.
- A first-time homebuyer is someone who is not owned residential property for three years or more.
- The total household income of homebuyers needs to be at or below certain limits and those limits vary by location and household size. Household income is the combined incomes of all homebuyers 18 years of age or over who live in a particular household. This includes every form of income from salaries and wages, retirement income, government transfers like food stamps and investment gains.
- Each Maryland County has defined household limit incomes. In counties that have targeted areas covering parts of the jurisdiction household income limits differ inside and outside of these areas.
- Eligibility on household income varies by household size. Households with 1 or 2 people have one set income limit and households with 3 or more have slightly higher income limits.
- Income limits range from $92,500-$154,420 depending on property location and household size.
- This program can only be used to finance the purchase of a home that will be occupied by the homebuyer as their primary residence.
- (Eligibility for this program does not automatically imply that the homebuyer will be approved)