The State of Maryland is now opening up their Grant Assist Program to buyers that own homes now or have owned a home previously in the past 3 years. The program follows the Grant Assist guidelines exactly and the only requirement is that the sellers cannot own any real estate at closing.
Yes, you are reading this right! Assistance for down payment and closing costs for people that own homes – NOW!
The State of Maryland broadened the Grant Assist program two weeks ago. The program is available to FHA buyers with credit scores of 640 or more. Initially the program was rolled out to help with ONLY the closing costs. The state changed the program so that the 4% can be used towards down payment and/or closing costs. This is HUGE NEWS, if you have a minimum 640 credit score you could have your entire down payment covered by using this program instead of the flat $5,000 the State offers through the Community Development Act (CDA program).
Example: A buyer wants to purchase a home for $300,000. The minimum the buyer has to contribute is 3.50% for the down payment. The Grant Assist will cover that ENTIRE down payment. The seller has agreed to give 3% for closing costs and the program will also cover another .50% towards closing costs for a total contribution of $12,000. And viola, the buyer is in with almost no money out of their pocket!
State of Maryland Grant Assist Program
* Grant Assist program is a grant of 4% of the first lien that can be used for down payment and/or closing costs. All 4% must be used entirely or the remainder of the funds will be used towards a principal curtailment.
* Conventional and FHA loans accepted for the 4% assistance. Minimum credit score required for conventional and FHA is now 640.
* Program available throughout every County in the State of Maryland.
* Grant Assist program funds cannot be combined with any down payment offered through the State of Maryland. The Partner Match Program is not available through the program either. Assistance from employers, builders, non-profits, etc. may be utilized by the borrower in combination with this initiative but will not be matched by the Department’s funds.
* Grant is fully forgivable and does not have to be repaid back.
* Rates are published daily by the State of Maryland for the first lien (these rates are higher than traditional rates).
* Borrowers must meet all eligibility requirements established for the Maryland Mortgage Program.
* Buyer cannot own any other real estate at the time of closing.
If you are thinking about buying or selling a home and need assistance for the down payment or closing cost this Grant Assist Program is now available for you….Give us a call or send an email today for a referral to one of our mortgage loan specialist to be pre-qualified for the program.
This Grant Assist program is open to ALL sellers, buyers and not just first time home buyers!