The Maryland Mortgage Program announced two very important updates that will have even more positive impact for buyers.
SMARTBUY 2.0 UPDATE
Effective for Smart Buy 2.0 reservations dated on or after October 1, 2018, the following will be implemented.:
* The dollar cap for the second lien is being raised to $40,000 from $30,000. Buyers are eligible to receive up to 15% of the sales price capped at a $40,000 loan to pay their student loan debt. All student debt from at least one buyer must be paid ENTIRELY in full prior to closing.
* The second mortgage is a 5-year forgivable loan of up to 15% of the purchase price, not to exceed $40,000.
* This second loan will be used to pay off the borrower’s outstanding student debt balance at the time of home purchase. If there are two Maryland Mortgage Program (MMP) borrowers, only one borrower’s student loan balance must be paid off. The funds also may be used to pay off the other borrower’s student debt ONLY if the total amount can be paid off in full.
HOMEBUYING EDUCATION UPDATE
Effective for Maryland Mortgage Program reservations dated on or after October 1, 2018, the following will be implemented:
* Home buyer education may be taken online or in person, individually or with a group, as long as the class has been approved by HUD, Fannie Mae or Freddie Mac.
* For Baltimore City and Baltimore County, the above flexibility will apply but the home buyer education must be completed prior to signing the sales contract. This is HUGE for Baltimore City and Baltimore County, the buyer no longer has to do in person counseling which can take up to 6-8 weeks.
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