Unlocking Homeownership: The Benefits of Maryland Housing Mortgage Programs
For many, the dream of owning a home can feel out of reach due to financial barriers. However, Maryland Housing offers a variety of mortgage programs designed to make homeownership more accessible and affordable. These programs significantly benefit homebuyers with low to moderate incomes who may need assistance saving for down payment and closing costs. At Mortgage Equity Partners, our Maryland loan officers are authorized by Maryland Housing to assist you with these programs.
The Maryland Mortgage Program (MMP) is a cornerstone of the state’s efforts to support homeownership. It offers a range of mortgage products tailored to homebuyers’ diverse needs across the state. Whether you are a first-time buyer or a homeowner looking to move into a new home, MMP provides mortgage options with competitive interest rates and numerous down payment and closing cost assistance options. The programs include conventional and government loan options.
The 1st-Time Advantage line of programs is only available for first-time homebuyers unless they purchase in a targeted area. Maryland’s targeted areas are determined by the US Census Bureau and are areas with fewer restrictions for homebuyers using Maryland Mortgage Programs. A borrower is considered a first-time homebuyer if it has been more than three years since owning a primary residence or if they are an honorably discharged veteran who had not previously used the first-time homebuyer exemption.
Here are some examples of the 1st-time Advantage Programs:
1st-Time Advantage Direct
This program does not have a down payment assistance option but does allow for external sources of DPA.
1st-Time Advantage 6000
This program comes with $6K in DPA in the form of a zero-interest rate loan repayable only after the first mortgage ends. This program is eligible for partner match funds, taking the DPA total to potentially $8.5K.
1st-Time Advantage 3% Loan
Comes with a DPA loan equal to 3% of the first mortgage in a zero percent deferred loan.
1st Time Advantage 4% Loan
Comes with a DPA loan equal to 4% of the first mortgage in a zero percent deferred second lien.
1st Time Advantage 5% loan
Comes with a DPA loan equal to 5% of the first mortgage in a zero percent deferred second lien.
HomeStart
For borrowers with income at or below 50% AMI (Area Mean Income). It comes with a 0% interest, 30-year deferred DPA loan equal to 6% of the MMP total loan amount (first lien).
The MMP Flex programs are designed for borrowers who are repeat homeowners. The flex programs have the following options:
Flex Direct Loan
Has no DPA but competitive interest rates, and it allows for external sources of DPA.
Flex 5000
Comes with a $5K loan for down payment and closing costs. The DPA loan is a zero-interest loan with no payment due until the first mortgage ends (repayment, refinance, transfer, sale).
Flex 3% Loan
Comes with a loan equal to 3% of the first mortgage in a zero percent deferred second lien.
Some programs listed above are eligible for the Maryland Mortgage Partner Match program for qualified borrowers. For those borrowers using the Maryland Mortgage Program’s 1st-time Advantage 6000 and Flex 6000, participating partners can provide financial assistance to borrowers who meet the criteria set by the partners, and MMP will match the partner’s contribution dollar for dollar up to $2,500. The match funds are added to the $6,000 of existing product assistance provided with the 1st-time advantage and Flex 6000 for a total of $8,500 assistance in a zero percent deferred loan. This loan is repayable when the home is sold or transferred or when the first mortgage is paid in full or refinanced.
Partner match participants include:
- Employers investing in the long-term sustainability of their workforce.
- Homebuilders and real estate developers give financial incentives to encourage buyers to purchase their properties.
- Community organizations
- Local governments
You can search the MMP’s database of participating partners or contact an experienced loan officer for assistance with the partner match program.
Maryland Mortgage Program also offers some specialty programs that address the needs of specific communities and homebuyer groups. These programs may have limited funds that are renewed each year. Contact your loan officer or Maryland Mortgage Programs for more information!
Beyond individual advantages, Maryland’s housing mortgage programs also contribute to broader community and economic benefits. By making homeownership more accessible, these programs help stabilize neighborhoods and promote community investment. Homeowners are more likely to engage in local activities and contribute to the overall well-being of their communities. Additionally, increased homeownership can lead to economic growth, stimulating demand for goods and services related to home maintenance and improvement.
For many, the dream of owning a home can feel out of reach due to financial barriers. However, Maryland Housing offers a variety of mortgage programs designed to make homeownership more accessible and affordable. These programs significantly benefit homebuyers with low to moderate incomes who may need assistance saving for down payment and closing costs.
Maryland’s down payment assistance programs play a pivotal role in transforming the dream of homeownership into a reality for many aspiring buyers. These initiatives are vital in bridging the financial gap and making it easier for individuals and families to purchase homes! If you’re considering buying a home in Maryland, exploring these mortgage programs could be your first step toward unlocking the door to your new home. Contact one of our authorized Maryland Housing Loan Officers today!
