First Home Mortgage is one of only four GOLD LEVEL Lenders for the Maryland Mortgage Program. Call Tim Sisson today for a free Maryland Mortgage Program pamphlet, and to discuss all of the facets MMP has to offer! Tim Sisson of First Home Mortgage is a leading provider of the Maryland Mortgage Program and provides the MMP loans in Dunkirk, Huntingtown, Prince Frederick, as well as the entire state of Maryland. For more information on the Maryland Mortgage Program or how to get Pre-Qualified, contact Tim today at 301-327-5817 or click here!
Maryland Mortgage Program Features:
Provides up-front financing to assist borrowers with down payment and closing costs. Grants do not need to be repaid.
- Special Assistance Grant Program: Grant of $1,500 or $2,500 (depending on the Area Median Income). May be combined with other MMP conventional loans.
- 4% Grant Assist: Grant of 4% of the first mortgage. May not be combined with other MMP programs.
Provides up-front financing to assist borrowers with down payment and closing costs.
– 1st Time Advantage 3% Assistance: No-interest second loan equaling 3% of the first mortgage. No payments are due on the second loan until the first mortgage is paid off, refinanced or transferred.
- SmartBuy 2.0: Helps qualifying homebuyers pay off student debt during the purchase of their home.
Provides low interest rate options for homebuyers which lowers the monthly payments.
- Maryland Preferred Rate: Offered on 30-year, fixed rate loans. Cannot be combined with closing cost or down payment assistance.
Down Payment and Closing Cost Assistance
An eligible borrower under the “Down Payment and Settlement Expense Program” (DSELP) can receive up to $5,000 to put towards their cash to close. These funds are considered a zero interest deferred loan and is required to be paid back once the loan is refinanced or the home is sold. The borrower must meet the income requirements for the county in which they are purchasing, and they cannot have owned a home in the last three years.
The DSELP can be paired with any loan program – Conventional, FHA, USDA, or VA.
Many people across Maryland are eligible to apply for a home loan through the Maryland Mortgage
Program. The main test (though not the only one) for whether someone can apply is based on Household Income. Additional eligibility factors for loan applicants are that they need to be at least 18 years old and have a social security number.
If an applicant is eligible based on these factors, eligibility for a Maryland Mortgage Program loan then depends on the location and price of the property that will be purchased (see below for further information).
Finally, there are a few other conditions that must be met to obtain a Maryland Mortgage Program home loan.
Applicants need to be “First-Time Homebuyers,” who are defined as not having owned (or been on title for) a principal residence anywhere in the last three years. However, exceptions are made for military veterans who are using their exemption for the first time or homebuyers who are purchasing in a Targeted Area (click here to learn more about Targeted Areas). In addition, homebuyers may not own any other real property at the time of settlement.
The home being purchased must be for the applicant(s) to live in – a Maryland Mortgage Program loan cannot be used to purchase an investment property or a house for someone else to live in.
The applicant(s) need to complete a Homebuyer Education course – in some cases, this needs to be done before a purchase contract is signed, though in most cases it must be completed prior to closing.
There are some restrictions on properties that can be purchased with a Maryland Mortgage Program loan – see Properties.
Potential borrowers with liquid assets equal to 20% or more of the sales price may not be eligible for the program.
Eligibility vs. Approval
Being eligible for the Maryland Mortgage Program doesn’t automatically mean that an applicant will be approved for a home loan. Standard underwriting practices apply, which means that a loan officer will consider a range of factors when determining whether you can borrow funds to purchase a home and how much you can borrow.
Factors like your income and current debt, your employment status and credit history will be considered, and you’ll need to work with your approved MMP lender to collect and submit documentation on these factors to support your application.
MINIMUM CREDIT SCORE REQUIREMENTS
The credit score is a number summarizing an individual’s credit profile. Two or more credit scores are obtained by the lender; a representative credit score is identified as the middle of three or lowest of two. Questions about this should be directed to the lender.
The minimum credit score varies depending on the loan product and/or insurer. Variables also may include the borrower’s Debt-to-Income (DTI) ratio, the Loan-to-Value (LTV) ratio and whether the underwriting can be run through an automated system such as Desktop Underwriter (DU) or can be done manually (not available for all products). The minimum credit score that a borrower must have in order to be eligible for Maryland loan products can be found in the fact sheets, but here is a basic summary (subject to change):
A credit score of 640-659 is permitted with 2 months reserves and DTI of less than 42%