MARYLAND MORTGAGE PROGRAMS – DOWN PAYMENT ASSISTANCE PROGRAMS
Maryland Mortgage Program offers buyers down payment assistance throughout Maryland, Virginia and the District of Columbia. There is some confusion about this program though because there are different monies available underneath the umbrella of the Maryland Mortgage Program. One of our preferred lenders is providing details about the different programs so you can have a better understanding of what programs are available for buyers as it relates to the MMP program only.
* SELP (Settlement Expense Loan Program) – This is the staple of the Maryland Mortgage Program and offers $5,000 to first time home buyers unless they are buying in a targeted area and then they can be second time home buyers. If a buyer is working for an employer on their House 4 Keys list they will be eligible for more down payment assistance. And, if they live within 10 miles of the house they are buying they are eligible for even more money through the Smart Keys program. All money received through this program has to be repaid to the State of Maryland when the buyer sell, refinances or defaults on their mortgage.
* Montgomery County Homeownership II Program – This program has limited money available and is close to running out of funds as we speak. Buyers can receive up to $25,000 based on 40% of their annual household income and can only be used in Montgomery County. All money received through this program has to be repaid to the State of Maryland when the buyer sell, refinances or defaults on their mortgage.
* Maryland Mortgage Grant Assist Program. – This program offers buyers 4% of the loan amount to be applied towards the down payment and/or closing costs if they use conventional financing. If a buyer uses this program with FHA financing, then the 4% can only be used for closing costs. The monies are fully forgivable and never have to be repaid back to the State of Maryland.
* Maryland Homefront – This program is available to veterans and they do not have to be first time home buyers. They will receive a discount of .25 on the current Maryland Mortgage rates. This program can be used with the SELP and Montgomery County Homeownership II monies.
* Preferred Rate Program – This program is designed for a buyer that is rate sensitive and offers no down payment and closing cost help. It does offer a lower interest rate that is typically priced lower than market rate for conventional and government loans.
The Maryland Mortgage Program has general guidelines which require 640-660 credit scores, it can be used with FHA, VA and USDA financing and it has very high income limits. Give us a call so we can refer you one of our senior mortgage lenders to determine if they will qualify for this program or another program down payment program based on their credit, income and assets.
