Financial assistance for Maryland homebuyers
If you are planning to purchase a property in Maryland and are: a first-time homebuyer, buying in one of the targeted areas, a veteran or someone with student debt, then this post is for you!
The MMP 1st Time Advantage program is open to first-time homebuyers and borrowers purchasing in a targeted area. Look into this program if it has been over three years since you have owned a principal residence or you are a veteran using the first-time homebuyer exemption.
The MMP 1st Time Advantage program includes three different options based on your preference. First you can choose the “direct” option, which offers very competitive interest rates, but no down payment assistance.
A second is the “5000 program,” which includes a $5,000 loan that you can use for the down payment and closing costs. There are no payments due for the first mortgage. A second lien is placed upon the property but has a zero percent interest rate. You must pay the second lien directly after the first mortgage ends.
Finally, your third option is the “3% loan,” which includes down payment assistance loan that is equivalent to 3% of the first mortgage, and there is a zero percent interest rate.
The Maryland HomeCredit program eligibility is the same as the MMP 1st Time Advantage program. The Maryland HomeCredit program allows borrowers to save thousands of dollars.
The way this program works is that you receive a tax credit equal to 25% of your mortgage interest payments in the given tax year. You can earn up to $2,000 of credit in a single year.
Those eligible for the Maryland SmartBuy program are homebuyers with a student debt that has a minimum balance of $1,000. This program provides financial assistance for up to 15% of the properties’ purchase price to help borrowers pay off their student debt. There is also a 2.0 version of this program, which offers the same thing and a maximum payoff of $40,000.
Please note that you must pay off your student debt when you purchase your home, and if you cannot do this, you will not receive the program benefits.
One key difference between the Maryland SmartBuy program and Maryland SmartBuy 2.0 program is that the first program includes move-in-ready homes that are currently owned and made available by Maryland. However, the second program allows you to purchase any home in Maryland.
At Federal Title, we understand that with all these great options, it may be hard to choose which program is your best fit. Send us an email at firstname.lastname@example.org or give us a call at (202)-362-1500, and we can help guide you through that process!