Second mortgage financing program to be offered
CENTREVILLE — The Queen Anne’s County Division of Housing and Community Services is pleased to announce the re-opening of the Moderately Priced Dwelling Unit (MPDU) Deferred Second Mortgage Program for moderate-income homebuyers in the county beginning Nov. 14. It currently has the funding for two loans. Under this program, eligible recipients can receive funding to help purchase a home in the county.
The funding comes in the form of a deferred loan that will be made to the qualified applicant, which won’t have to be paid back until the property is sold. Loans will be awarded to applicants who meet all the criteria in an amount not more than 33 percent of the appraised value of the home or not to exceed $50,000.
The home must be located in Queen Anne’s County and must be the applicant’s primary and only residence. No payments need to be made on the loan until the property is sold or is no longer the owner’s principal residence, at which point the interest free loan is due and payable in full. Once the loan has been paid back, those funds go back into the program.
Applicants must have income based on 80 percent or less than the area median income as determined by the Untied States Department of Housing and Urban Development. The maximum allowable income limits as of April 2016 are: one person, $46,000; two persons, $52,600; three persons, $59,150; four persons, $65,700; five persons, $71,000; six persons, $76,250; seven persons, $81,500; and eight persons, $86,750.
MPDU Second Mortgage Loans are awarded on a first-come first-served basis with bonus points awarded for Critical Workforce Employees and Queen Anne’s County residents. Critical Workforce Employees are defined as: Queen Anne’s County volunteer firefighters (who have served for at least 12 months and have been verified by the president or chairman of the volunteer chief’s association), Detention Center corrections officers, emergency medical technicians, police and teachers who are employed by the county. All, however, are welcome to apply who are within the above income guidelines.
In addition to meeting the allowable income limits, an individual or family may not currently own a home, nor have owned a home within the last five years and they must never have owned a MPDU in Maryland or any other state. Applicants must have a good credit rating, steady income and the home must be affordable for their income.
Along with the application process, an individual or family must be able to obtain a pre-qualification letter from a lending institution for an amount not less than the purchase price and remain income eligible up to the time their mortgage is submitted for underwriting. Each eligible person must provide a certificate showing they have completed six hours of home ownership counseling, and have 90 days to secure a contract on a home.
The initiative is a Queen Anne’s County program funded by developers who opt to pay a fee-in-lieu of actually providing MPDUs in progressing developments. For more information, and to obtain an application, contact Brittany Brady, Housing Program Administrator, at 410-758-3977, ext. 2070, or visit www.qachousing.org and click on the MPDU link on the left side.