MEP Advantage Down Payment Assistance Program
Mortgage Equity Partners offers a down payment assistance (DPA) program to help homebuyers who may not be a great fit for state and local DPA and bond programs. We have partnered with a well-established lender to be able to provide down payment assistance through The National Homebuyer’s Fund, a DPA non-profit benefit corporation.
The MEP Advantage DPA Program is designed to increase homeownership opportunities for low-to-moderate-income homebuyers. The funds provided through this program can help subsidize the additional money needed for down payment and closing costs and may help turn homeownership dreams into reality, even for those facing financial constraints.
Our program has 2 options that provides 100% financing of a home’s sales price as per FHA guidelines. With an FHA loan requiring a down payment of 3.5% of the home’s sales price, the MEP Advantage DPA program can be used to cover the rest.
MEP DPA Option 1
Option 1 is a second lien with an interest rate equal to the first note rate plus 2%. It has a 10-year loan term but can be payable upon sale, refinance, or payoff. The total loan amount is 3.5% of the lesser of the sale price or appraised value.
MEP DPA Option 2
Option 2 is a second lien forgivable loan with an interest rate of 0%. The payments are deferred, and no interest accrues. This loan is forgivable after 10 years. The total loan amount is 3.5% of the lesser of the sale price or appraised value.
As you can see, this program is a great tool for homeowners in today’s market who want to buy a home but are being impacted by rising home prices and lack of disposable income for down payment and closing costs.
Additional features of the MEP Advantage DPA:
- The minimum FICO score for this product is 600.
- MEP does not require that the homebuyer be a first-time homebuyer, but homebuyer education is required by at least one occupying home buyer.
- The property types that can be purchased using this program include single-family residences (1-unit), duplexes, some manufactured homes (check with your loan officer on this), PUDS, Townhouses, and some condos (check with your loan officer on this). Note: MEP’s Advantage DPA program is not used on 3–4 unit properties.
Maryland Mortgage Programs
The Maryland Mortgage Program is designed to make it easier for first-time Homebuyers to purchase a new home. Maryland Mortgage Programs are designed for a variety of buyers with different needs.
The programs include:
The 1st Time Advantage 5% DPA
First time homebuyers may be eligible for a Down Payment Assistance (DPA) loan equal to 5% of the first mortgage in a zero percent deferred second lien. In addition, 1st time advantage loan offers competitive interest rates for FTHB.
Flex
Similar to the 1st Time Advantage loan, Flex Includes down payment assistance in the form of a non-interest loan that must be repaid or a grant. This program is open to repeat buyers and has competitive 30-year fixed rates.
Home Ability
Down Payment Assistance for the disabled. A conventional loan product provides up to 95% LTV in a first lien and up to 25% (max $45,000) in a second lien to assist with down payment and closing costs.
HomeStart
6% Down Payment Assistance Loan for borrowers at or below 50% of Area Media Income. The HomeStart loan comes with 0% interest and a 30-year deferred down payment loan equal to 6% of the Maryland Mortgage total loan amount (first lien).
Maryland SmartBuy 3.0
This loan is for borrowers with at least $1,000 in student loan debt. The SmartBuy 3.0 program can help you get a mortgage and pay off that debt in one transaction. The amount you can apply to student loan debt payoff is up to 15 percent of the home’s purchase price with a cap of $50,000. This is a zero-interest forgivable loan after five years.
In addition to the requirements by program, all Maryland Mortgage Programs generally require that borrowers purchase a primary residence and not own another residence. The home is required to be within the Maryland purchase price limits, which vary depending on location. Income limits also require that the combined household income of all adults living on the property does not exceed Maryland Limits.
Credit Score minimums are as follows:
- Conventional loans-640-680 depending on DTI and LTV
- FHA Loans-640
- VA and USDA Loans-640
Maryland Mortgage Down Payment assistance loans offer credit-worthy borrowers an affordable home financing option. Additional eligibility requirements may exist, and a consultation with one of our Maryland licensed loan officers to discuss your eligibility is required.
