You have finally decided to buy your first residential home. But you aren’t sure if you can afford the down payment or closing costs it will take to actually buy your dream home. But did you know that in Maryland there are several different buyers’ incentive programs? This guide will help you decided which incentive program to apply for when purchasing your new home.
Maryland Mortgage Program (MMP)
Also known as the “First-time Buyers Incentives,” this program is for first time buyers or those who haven’t owned a home in the past three years. This program offers down payment and closing cost assistance of up to $5,000 as well as a 30-year fixed rate mortgage for first homebuyers and for people with fair credit. Before qualifying for this program, buyers must attend a Homebuyer Education course as well as a Homebuyer Counseling session. Although it differs by county, this program has an income limit when it comes to eligibility. Your income approval will be based on the number of people in your household as well as the targeted area of the program.
No Down Payment Assistance Program
This program can be used in conjunction with the Maryland Mortgage Program. It is used to help first time buyers save money by not requiring a down payment or other upfront costs. Although a down payment loan is included with the MMP, this program will forgo the loan.
Maryland Homefront Program
This is a program designed specifically for active duty and veterans of the United States Military. It offers a discounted interest-rate on a 30-year fixed mortgage and can be combined with the No Down Payment Assistant program. This program is also a part of the MMP.
Down Payment Assistance Program
This program can be used with other programs as a way to cover down payments as well as closing costs. This loan can be up to $8,500 in a zero percent deferred loan program. Borrowers can pay the loan when they transfer or sell the property or when the mortgage is paid in full.
Partner Match Programs
The Maryland government has joined forced with employers, developers, and communities in order to help potential residents and employees own a home. The program helps cover down payments and closing costs. Partners match between $1,000 and $5,000 in grants or loans. The state will match up to $3,500 of these grants with a zero interest deferred loan. Participants can use multiple partners and these matches can be combined with other down payment assistance programs.
Maryland Home Credit Program
This mortgage credit certificate can be combined with other down payment assistance programs as well as the MMP. This credit can be up to 25 percent of the mortgage interest paid up to $2,000.
There may be other incentives available by community based organizations including the Chamber of Commerce and other local societies. For more information on possible community incentives as well as these Maryland based incentives, speak with your Clagett Enterprises real estate agent!
Selling Your Residential Property with Clagett Enterprises
At Clagett Enterprises, we have extensive experience serving the greater Frederick area and Western Maryland, since 1987. Our team is a full service real estate company that’s ready to help you with your real estate needs. Speak with a Clagett professional at 301-665-6009, or request a proposal for preventive maintenance here.