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.
With this program, the borrower can either purchase a home which is owned by the State of Maryland, by using the Smart Buy Program, or they can purchase any available home, by using the Smart Buy 2.0 Program.
The borrower must have, at least, $1,000 of student debt to be eligible.
With either program, the student debt relief can go up to 15% of the purchase price of the property, but the Smart Buy 2.0 Program has a limit of $40,000.
To use the programs, 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 such as:
--- The borrower must be 18 or over;
--- The borrower must be a first time buyer, unless they are purchasing in a targeted area;
--- There are income limits, which vary by regions around the State;
--- The borrower should not have more than 20% of the purchase price available in liquid assets.
An approved lender can give more details on the eligibility requirements.