Buy a House and Eliminate Your Student Debt
Student debt has been holding people back from purchasing homes.
The State of Maryland has designed a mortgage program to deal with this issue.
By using this program, one can receive a mortgage to purchase a home and have a significant portion of their student debt relieved.
The borrower must have, at least, $1,000 of student debt to be eligible.
The student debt relief can go up to 15% of the purchase price of the property, but the Program has a limit of $40,000.
The student debt relief portion is a second loan, not a mortgage, which is a 5 year forgivable promissory note.
To use the program, any student debt which exceeds that which is covered by the program, must, also be paid. So if the student debt exceeds 15% of the purchase price or the $40,000 limit, then that additional amount must be paid by some other means.
If there are two borrowers in the purchase, then only one of the borrower's student loan debt must be paid in full.
With either program, the borrower can still use down payment and closing cost assistance programs.
The borrower must use an approved Maryland Smart Buy lender.
There are eligibility requirements for the borrower for which an approved lender can give more details.
Contact Ron Trzcinski at 410-935-5844 for information on eligible lenders.
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