In our previous blog, we explored down payment options at your disposal from mortgage brokers in Towson MD. In that blog, we explored loan options that allow you to pay less than 20% down depending on your certain scenario and qualifications. Today, we’ll instead focus on down payment assistance programs in Maryland, Baltimore County, and more.
What Are Down Payment Assistance Programs?
Put simply down payment assistance programs help homebuyers afford down payments either through grants or loans. Assistance programs come in all shapes and sizes and are often tailored to specific kinds of home buyers or specific kinds of buyers. For instance, many areas offer support to first-time homebuyers, while others may offer grants for buying historic properties or purchasing in economically depressed areas. Maryland offers its own program, as does Baltimore County. Below we’ll explore the down payment assistance options you should discuss with your mortgage brokers in Towson MD.
Settlement Expense Loan Program (SELP)
Offered through Baltimore County, the Settlement Expense Loan Program is tailored to low and moderate-income, first-time homebuyers. This program is not technically a down payment assistance program, but rather is meant to assist with closing costs. Income-eligible borrowers can access up to $10,000 to help cover closing costs. To qualify, the property can’t be a new build but must be a pre-existing home within the designated Community Conservation Areas of Baltimore County. The SELP comes in the form of a deferred loan. This can be forgiven so long you occupy the property for a period of affordability that lasts 15 years.
The Maryland Mortgage Program (MMP)
The Maryland Mortgage Program is a state-backed mortgage program for Maryland buyers. Through the MMP, there are several options for lowered down payments and down payment assistance. The program provides 30-year fixed-rate mortgages to eligible homebuyers in Maryland. Instead of offering different loan terms, loans vary by the form of down payment and closing cost assistance available. For instance, the 1st Time Advantage 5000 includes a $5,000 loan to assist with down payment and closing costs. Meanwhile, the 1st Time Advantage 3% Loan allows you to borrow up the 3% of the down payment amount. Each option has its own repayment requirements we recommend you review. To learn more about the eligibility for the MMP, please click here.
The Chenoa Fund
The Chenoa Fund is a national program that provides down payment assistance to buyers across the country. Down payment assistance of up to 3.5% is available to first-time buyers, and can be applied to both FHA and conventional loans. To learn more, please click here.
Down payment assistance programs are an integral element in the mortgage process, helping buyers who may not otherwise be eligible to afford a mortgage. If you’re in search of mortgage brokers in Towson MD, look no further than Federal Hill Mortgage. As the top-ranked brokers and lenders in Maryland, we’ve helped thousands of families explore their options and finance their dream homes. To get started, apply today.