Maryland Smart Buy Program Expansion to $$ 3 Million $$ - Program Will Offer More Opportunities for Homebuyers With Student Debt! On July 16, the Hogan administration announced that Maryland Smart Buy Program, a nationally-recognized program that assists first-time homebuyers burdened with student debt. Relaunched as Maryland Smart Buy on August 6. Maryland Smart Buy 2.0 will allow participants to purchase any eligible home in the state, while eliminating up to $30,000 in student debt. Currently, Smart Buy requires buyers to purchase select homes designated by the Maryland Department of Housing and Community Development (DHCD). "We are proud that Maryland continues to be home to one of the most highly educated populations in America, but the harsh reality many face today is that earning a college education often goes hand-in-hand with crippling college debt," said Governor Larry Hogan. "This new $3 million expansion of Smart Buy will help young people buy a home, removing … [Read more...]
Prince George’s County Purchase Assistance Program
Prince George's County Purchase Assistance Program (PGCPAP) strategy is to provide home purchase assistance to eligible, first-time home buyers to purchase residential properties in Prince George's County. Home purchase assistance includes down payment, mortgage principal reduction and/or closing costs. Prince George's County Purchase Assistance Program is funded by the Housing Investment Trust Fund. The Redevelopment Authority of Prince George's County administered the program in partnership with participating lenders, realtors and housing counseling agencies that are approved by the U.S. Department of Housing and Urban Development (HUD). Loan Terms Maximum loan: $15,000.00 Purchase price limit: $462,000 (resale or new construction) Loan terms: 0% interest, deferred payment If the buyer is one of the following, they may be eligible for an additional $5,000 based on their need. This would bring the total loan amount to $20,000. … [Read more...]
Grant Assist Program Super Sized
Grant Assist Program supersized by the State of Maryland (mmp.maryland.gov). This change will help many, many buyers throughout the State of Maryland. Initially the program was rolled out to help with ONLY the closing costs but they have just changed it 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 CDA program. Example: A buyer wants to purchase a home for $300,000. The minimum the buyer has to contribute is 3% 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 1% towards closing costs for a total contribution of $12,000. And viola, the buyer is in with no money out of their pocket! Grant Assist * Grant Assist program is a grant of 4% of … [Read more...]
Maryland Mortgage Advantage Program
Maryland Mortgage Advantage Program - Good news coming from the State of Maryland - This new interest rate program just rolled out! The program provides buyers with a very low interest rate compared to traditional market rates. Buyers can use the program with FHA, VA, USDA and Conventional loans. Today's rate for VA, FHA and USDA loans is 4.125% with NO POINTS. The conventional rate is 4.625% with NO POINTS. Those rates are highly competitive and much lower than any rate a buyer will find in this market. The program can be used for every County in the entire State of Maryland. However, the program does not offer any type of down payment assistance with it. This program is great for buyers that have their own money for the down payment, but want a lower interest rate so their mortgage is more affordable. The program follows the MMP guidelines with credit scores of 640, a debt ratio of 45% and the buyer must be a first time home buyer unless they are buying in a targeted area … [Read more...]
State of Maryland Grant Assist Program
The State of Maryland Grant Assist Program is opening up 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 Grant Assist Program 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 … [Read more...]
A True Grant of $1,500 to Help Buyers
A true grant of $1,500 to help buyers with their closing costs is now available from the State of Maryland. This grant adds a little more sizzle to your loan options and purchasing power. The grant assistance runs from June 28th to September 30th 2017 in EVERY county throughout the State of Maryland. A buyer wishing to use the grant must have their loan registered during this time period. The grant funds can only be used for closing costs and cannot be used for the down payment. It can be combined with the other State of Maryland down payment programs. It also must be used in conjunction with conventional loans only which require a minimum 640 credit score. Scenario #1: A buyer wants to purchase a home for $200,000. The minimum the buyer has to contribute is 3% for the down payment. The Grant Assist program will cover the BALANCE of down payment. Let's say the closing costs is approximately $9,000 and the seller has agreed to give 2.5% or … [Read more...]
The State of Maryland Supersized their Grant Assist Program
The State of Maryland supersized their Grant Assist Program - This new program will help many buyers throughout the State of Maryland. Initially the program was rolled out to help with ONLY the closing costs. But, they have just changed it so that the 4% can be used towards down payment and/or closing costs. This is HUGE news - if you are a buyer with 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 CDA program. Example: If you are a buyer who wants to purchase a home for $300,000. The minimum you as a buyer have to contribute is 3% for the down payment. The Grant Assist program will cover that ENTIRE down payment. The seller agrees to give 3% for closing costs. The program will also cover another 1% towards closing costs for a total contribution of $12,000. And viola, you are in with no money out of your pocket! Grant Assist Funds - The Grant … [Read more...]
Buy HUD Home for $100 Down Payment
Buy HUD Home for $100 Down Payment The HUD incentive program is designed to attract home buyers in the buying market to move excess housing inventory. Do not wait - this incentive program will only run for a short time! If you are looking to purchase a home with minimum cash requirements this program could be the answer! To find a list of the available homes for this program, go to hudhomestore.com, select the State of Maryland and Buyer Type as All. Buy HUD Home for $100 Down payment Requirements: Home buyer must offer the full asking price for the home Home buyer must live in the property for a minimum of 1 year (investors are not qualified for this HUD incentive program) Home buyer should use a FHA loan for the purchase of the home, e.g. (FHA 203b, 203k loans are acceptable) The home must be a HUD owned home The home buyer must use a HUD registered real estate agent or broker to qualify for this incentive … [Read more...]
The Basics of Mortgage Financing
The basics of mortgage financing for each type of mortgage financing as it relates to credit, income and assets follows. We have included helpful tips that will help home buyers in situations that are unique and do not follow cookie cutter conventional financing. Credit score: Currently, the lowest credit score is 620 if no mortgage insurance is needed. And, 640 if mortgage insurance is required. Loan officers cannot manually underwrite conventional loans. They must have an Approve/Eligible in the automated underwriting system. Unlike Federal Housing Authority (FHA) loan - Conventional loans carry risk based pricing adjustments so the lower the credit score the higher the rate and mortgage insurance rate. Typically, a buyer with low credit scores will be much better served using FHA financing because the rate and Mortgage Insurance (MI) will cost less for them. Income: The maximum debt to income ratio is typically 45%. However, a Loan Prospector with good … [Read more...]
Maryland Mortgage Program (MMP)
Maryland Mortgage Program (MMP): Maryland Mortgage Program (MMP) DROPPED their credit score requirement to 640 on conventional financing up to 97% LTV. Now - Home buyers who qualify for a Federal Housing Authority (FHA) mortgage loan can easily go conventional under this program because the MMP sets the debt to income limit at 45% which follows conventional guidelines exactly. The MMP program also have a flat interest rate for all buyers. It is not credit score dependent when determining the interest rate as traditional conventional loans. This means a lower score buyer will still receive a great rate! And, buyers only have to put 3% down instead of 3.5% under FHA requirements. Be mindful that the seller can only contribute up to 3% of the closing costs if the LTV is above 90%. Here is a quick look at the Maryland Mortgage Program (MMP)... If you have not owned a home in the past three years in the State of Maryland, there is an EXCELLENT chance you are … [Read more...]
Are you Ready to Make the Leap into Home Ownership?
Are you ready to make the leap into home ownership? Are you still living at home? Renting a home to own? While everyone moves at their own pace now is the time to take advantage of the historically low interest rates. In addition to, local and federal programs available to first time home owners. Here are some a few signs to observe to determine if it is time to own your own home. Let's take a look at some of the reasons you should consider to justify your home buying decision. Are You Sticking Around? If you plan on moving soon for a job transfer. Or, plan on moving in the future for other family reasons - it may be better to rent. However, if you are thinking about living in the same city, town or within the same county for years to come - it is time to put down roots! You will appreciate the stability that comes with home ownership. Home ownership can make you more prepared for a marriage and/or a family if that's the lifestyle you prefer. The stability of … [Read more...]
First Time Home Buyers Credit
First time home buyers credit - The State of Maryland has a great program to help home buyers obtain home ownership and now first time home buyers can qualify for the the Maryland Mortgage Program! If you have not owned a home in the past three years in the State of Maryland, there is an EXCELLENT chance you will will be eligible for assistance of $5,000 at a MINIMUM. And, even if you have owned a home in the past three years, there are targeted areas where you can buy again without the 3 year wait. For example, the entire City of Baltimore is classified as targeted so anyone can get $5,000 in assistance as long as they don't own any other property when they go to settlement. The Maryland Mortgage Program offers $5,000 in assistance or potentially more depending on the your employer for down payment or closing cost assistance. So, if are purchasing a $200,000 home and you need 3.5% of the purchase price ($7,000) as a down payment, this program will … [Read more...]
Veteran Buyers
Veteran buyers will be faced with several changes in the coming months when applying for a VA loan. As of now, the Senate is reviewing a law that has already passed The House of Representatives to make two big changes to VA loans. The first change is to get rid of VA loan limits entirely so buyers do not have to come up with a down payment. Right now, a buyer can purchase up to $417,000 with no money down at all. If they go above this amount - they have to come up with some money for the down payment. Let's say it is 25% of the difference of the sales price over $417,000. As an example, if a buyer purchases a $500,000 house then they need to come up with $20,750 ($500,000-$417,000=$83,000 x 25%). Under the new law - they would not need any money for the down payment if they purchased over $417,000. This will have a huge impact on the cash needed for high end veteran buyers. The second change is in regards to VA non - allowables. Right now there are … [Read more...]
Grant monies are back
Grant monies are back! The Federal Home Loan Bank replenished their funds for 2016. They are limited though and will go very fast because the grant is very popular and easy to obtain for buyers. Federal Home Loan Bank offers $5,000 to first time home buyers if they contribute a minimum of $1,250 into buying their home. And those monies can actually be gifted as well. Buyers can actually contribute less monies but their grant will be reduced because it is based on a 4:1 ratio. For example, if a buyer wanted to obtain $2,500 of grant monies then they would only have to contribute $625 or half of the $1,250. And the fees they pay upfront can be used to meet their contribution so the earnest money deposit and appraisal fee can be used towards their minimum contribution. Here are some other reasons to consider this grant over the other grant programs if a buyer's income qualifies under it. The grant is forgivable after 5 years entirely. If a buyer vacates … [Read more...]
Making Home Affordable (MHA) Program
WHAT IS MAKING HOME AFFORDABLE (MHA) ALL ABOUT? Making Home Affordable (MHA) Program is a critical part of the Administration's broad strategy to help homeowners avoid foreclosure and stabilize the nation's housing market. Eligible homeowners can lower their monthly mortgage payments and get into more stable loans at today's low interest rates. And for those homeowners for whom ownership is no longer affordable or desirable, the program can provide a way out that avoids foreclosure. There are also options for unemployed homeowners and homeowners who owe more than their homes are worth. ABOUT SERVICERS HOME AFFORDABLE REFINANCE PROGRAM (HARP) I'm current on my mortgage. Is it possible to refinance my loan under HARP? Yes. Eligible homeowners, who are current on their mortgages but have been unable to take advantage of lower interest rates because their homes have decreased in value, may have the opportunity to refinance. Through HARP, Fannie Mae and … [Read more...]
Interest – Only Mortgages
Interest - Only mortgages received a lot of bad press during the aftermath of the housing bust, but they have stuck around as a viable mortgage alternative to home buyers who meet rigorous lending guidelines enacted by the federal government in recent years. Interest - Only mortgages can lower monthly mortgage payments by allowing borrowers to delay paying principle on their loan for several years. The down side of this mortgage program is the increase in mortgage payments when interest-only period comes to the end. At that time, borrowers begin to pay a combination of principal and interest until the loan is paid off. The shock of the increase in monthly mortgage payments as a result of higher interest rates on adjustable-rate interest only loan loans have caused many borrowers to default on their loans in the past. This shock in monthly payments is often accompanied with a higher interest rate which results in many borrowers falling behind in their monthly … [Read more...]
Home Buyers Assistance – State of Maryland
Home Buyers Assistance - State of Maryland have a great program to help home buyers obtain home ownership. And now, first time home buyers can get a tax credit too! If you have not owned a home in the past three years in the State of Maryland, there is an EXCELLENT chance you will be eligible for assistance of $5,000 at a MINIMUM. And, even if you have owned a home in the past three years, there are targeted areas where you can buy again without the 3 year wait. For example, the entire City of Baltimore is classified as targeted so any buyer can get $5,000 in assistance as long as they don't own any other property when they go to settlement. The Maryland Mortgage Program offers $5,000 in assistance or potentially more depending on the buyer's employer for down payment or closing cost assistance. So, if a buyer is purchasing a $200,000 home and they need 3.5% of the purchase price ($7,000) as a downpayment, this program will give them $5,000. If they then receive a full seller … [Read more...]
Buyers Closing Cost Rebates
Buyers closing cost rebates are becoming more prominent with mortgage broker for the various types of mortgage sources -- with different rules to consider for each type. Mortgage brokers have started advertising substantial credits to entice potential customers. Buyer’s closing cost rebates or credits could range from $2,000 to $5,000 per loan, but sometimes the rebates can go as high as $10,000 or more to help reduce borrower’s closing costs. In Kenneth R. Harney’s article in last Saturday’s Washington Post editorial under “The Nation’s Housing”, he provided the results of a survey of 164 member firms of the National Association of Mortgage Brokers. The survey found that mortgage companies provided more than $69 million in closing cost credits to buyers during last year, and on track to pay out the same amount or more this year. Mr. Harney noted that the Mortgage Brokers’ group estimated that brokers nationwide rebated upwards of $2 billion in 2012. Buyers closing cost rebates vary, … [Read more...]
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