MARYLAND’S NEW GRANT TO PAY CLOSING COSTS
Grant Assist is designed to assist homebuyers with closing costs associated with purchasing a home in Maryland using the Maryland Mortgage Program (MMP). The Maryland Department of Housing and Community Development (DHCD) offers a first mortgage loan that is accompanied by a grant to pay closing costs. The grant cannot be used for a down payment.
Highlights of the Program
CLOSING COST ASSISTANCE: Grant Assist includes a grant of 4% of the MMP loan amount (first lien). The grant is to be used for the closing costs of the mortgage loan and home purchase at closing. If the 4% exceeds the total closing costs needed for the transaction, the excess funds will be applied by the lender to a principal curtailment.
The grant is available under this program is strictly 4% and no higher or lower percentages allowed.
Under the Grant Assist Program the lenders will advance the grant funds of closing and the Community Development Administration (CDA) will reimburse the lender after the loan is post-closing approved by CDA (please refer to Directive 2014-34).
Reminder: CDA Assistance programs cannot be used with conventional financing for purchase of a DHCD-owned REO.
DOWN PAYMENT REQUIRED FROM THE BORROWER: The borrower will bring the minimum down payment required by Fannie Mae/Freddie Mac or FHA/RHS/VA for a conventional or government insured loan as stated in their guidelines.
GRANT ASSIST PROGRAM FUNDS CANNOT BE COMBINED WITH THE DOWN PAYMENT ASSISTANCE PRODUCTS OFFERED BY CDA.
MARYLAND HOMECREDIT PROGRAM: Available with this program. The Maryland HomeCredit Program is subject to federal regulations and availability of funds, and may be discontinued at any time in the Department’s sole discretion.
ELIGIBLE BORROWERS: All MMP purchase products require homebuyers to take a Homebuyer Education class. An education class may be any class approved by HUD. Fannie Mae or Freddie Mac, including an online class, although some jurisdictions have special requirements. (http://mmp.maryland.gov/Pages/Homebuyer-Education.aspx).
FIRST TIME HOMEBUYER REQUIREMENT:
Borrower is purchasing in a targeted area.
It has been more than 3 years since the borrower has owned a principal residence; or
Borrower is an honorably discharged veteran who has not previously used the first-time homebuyer exemption.
For more information, please visit: www.MMP.Maryland.gov/GrantAssist
If you are a first time homebuyer who needs a Realtor to represent and guide you through the process, please call me today!
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