Resources are available for first-time homebuyers
Your home is special — it’s the place you celebrate, spend time with loved ones and break bread with neighbors. If you are a first-time homebuyer in Maryland, there are resources and assistance available so you can buy your new home.
The Maryland Department of Housing and Community Development offers the Maryland Mortgage Program, which aids those meeting certain eligibility requirements with first-time home mortgage assistance. You are considered a first-time homebuyer if you have not owned residential property for three years or more.
The MMP provides first-time buyers with a 30-year, fixedrate loan, as well as down payment assistance. You can work with any approved MMP lender to apply for these funds. The MMP assistance is based on income, depending on household size. Learn more about these requirements at mmp. maryland.gov/Lenders/Pages/Income-and-Purchase-Limits.aspx. In order to qualify for this program, you must complete a HUD-approved, home-buying course. If you are looking for one of these courses, one local HUD-approved housing counseling agency is Southern Maryland Tri-County Community Action Committee Inc. To learn more about their offerings, visit www.smtccac. org/.
If you have student debt, there are several grants that can assist you with first-time mortgage assistance. One of these is Maryland SmartBuy. This program works by paying off student debt during the purchase of the home through Maryland Mortgage Program financing. Another option for those facing student debt is through the You’ve Earned It Initiative. This limited-time offering is in place for firsttime buyers who live in certain sustainable communities and have at least $25,000 in student debt. You can find a list of sustainable communities at: dhcd. maryland.gov/Communities/ Pages/dn/communities.aspx. If you meet the requirements, you can receive an interest rate that is 0.25% below the regular conventional and government interest rate.
In addition to these programs, you can also consider the Maryland HomeCredit Program, which provides annual federal tax savings up to $2,000 each year for the life of the loan. You can apply for a Maryland HomeCredit through an approved mortgage lender when you apply for a home loan.
Locally, Charles County offers a Settlement Expense Loan Program to Charles County residents, which provides direct financial assistance of up to $6,000 for settlement expenses to qualified low-income and moderate-income, first-time home buyers in the county.
The loan is secured by a second mortgage, repayment of which is deferred until such time as the property is resold, transferred, refinanced, foreclosed or the buyer discontinues occupancy of it as a principal residence.
Your individual situation will determine which loan or grant options are best for you and your family. Talk to an MMP-approved lender to learn more. You can find an approved lender at mmp. maryland.gov/Pages/Find-ALender.aspx.
For additional information about the housing programs offered by the county, visit www.CharlesCountyMD.gov/ cs/housing/housing-authority. For additional information about Maryland housing programs, visit mmp.maryland.gov/Pages/default.aspx. Thank you for considering Charles County as the place you and your family build your life and home.