This is a mortgage purchase program for 1st time home buyers(fed definition) Fixed rate, 30 yr loans Used with FHA, VA or USDA financing.
Borrower’s can get Down Payment & Settlement Expense Loan Program. Money the state has appropriated to lend to 1sttime home buyers at 0% deferred, for them to use toward their settlement expenses. A Loan of $3500 @ 0%, deferred until 1st trust loan payoff, used for Closing costs or Down Payment. Or the Borrower can get a 2% or 3% GRANT toward closing costs(not DP n FHA),there is a higher interest rate for the grant programs. Other community seconds and/or grants can be used in conjunction with CDA Down Payment assistance.
Through “House Keys 4 Employees” and “Smart Keys 4 Employees” Additional assistance of up to $15,000 may be available for qualified buyers.
Allowable 580 credit scores
Home buyer education is required. In some areas like Baltimore City, Baltimore County, Anne Arundel County & Harford County they have special requirements, possibly having the counseling PRIOR to entering into a contract, you must review the workshop info sheet. Not having the counseling before writing the contract can kill a deal in some jurisdictions. Also, if pursuing the DSELP, must be from one of the HUD approved agencies, on the sheet.
At the moment this is a niche product, but that can change at any time. They routinely change the rules, sometime good and sometimes not so good, so you need to stay up with it. In 2008, I lived on CDA, Haven’t done one in about 9 months because of the rate, and lack of MHF funding.
This is a Maryland Mortgage loan that your lender must be approved to offer.
I am sure this program is going to come back to life some time very soon.
Call Bill Sohan @ 410-963-2308 to be pre-approved today.
