Maryland Mortgage Program: A buyer’s incentive

Most new Maryland buyers ask for the seller(s) for contribution towards the down payment and other upfront closing costs they need to buy their first home.  While a good agent can help you negotiate seller concession, also known as seller help or seller contribution toward closing there are other resources available to you.  The Maryland Mortgage Program (MMP) is a down payment assistance program offered to first time home buyers looking to purchase in the state of Maryland.  While it is not "free money" it is a 0% interest deferred loan.  This loan will give you up to $5,000.00 toward your down payment and is paid off only when you sell without interest.

**To be eligible for this program applicants must be:

  1. First time home buyers, who have never owned (or held title for) a principal residence anywhere in the last three years. 
  2. Purchasing the home to use as their primary residence.  Home may NOT be used as an investment property or rental.
  3. Able to complete a Homebuyer Education course. *This course needs to be finished, your one on one counseling session completed, and you should have your certificate in hand prior to making an offer or gong under contract on a home.
  4. Making a MAXIMUM income of $108,600.00 (for 1-2 people) or $126,700.00 (for a household of 3).

**Other important factors that apply outside of being approved include:

  1.         Your current debt, employment status, and credit history.
  2.         Loan type:
    ·         FHA loans require a minimum credit score of 660.
    ·         Conventional loans require a minim credit score of 640.
  3.        Your debt-to-income ratio must also meet the loan requirements for your loan type.

**Important details you’ll need to know:      

  1.         Your new mortage loan cannot exceed $525,901.00.
  2.         You CAN use this program with other grant incentives.
  3.         Home buyer must use an approved lender.
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