Maryland Mortgage Program Announces Lending Product Diversification
Additional financial assistance available now for homebuyers
NEW CARROLLTON, MD (July 5, 2022) – The Maryland Department of Housing and Community Development’s Mortgage Program announced today the launch of new loan products to provide more flexible down payment and assistance options at closing costs. The Maryland Mortgage Program has been the state’s flagship homeownership program for more than 40 years and over the past three years has averaged more than $1 billion in home loan reservations, helping approximately 4,000 Marylanders gain access to their dream home each year.
“In this challenging housing climate, when interest rates are rising and affordable housing inventory is low, the State of Maryland is always looking for innovative offerings to make homeownership affordable” said Secretary Kenneth C. Holt. “Our Maryland mortgage program is nationally recognized for its diverse product line, and we are constantly evaluating new products that provide Marylanders with the best option for homeownership.”
New products and enhancements for FY2023 include:
- Basic down payment assistance will increase from $5,000 to $6,000.
- SmartBuy, which provides student debt relief to homebuyers, will offer an option for additional down payment assistance in the form of a 4% loan. SmartBuy borrowers can choose between $6,000 or a 4% loan for down payment and closing costs plus student debt relief of up to $30,000.
- HomeGet started is a new loan product for borrowers with an income below 50% of the MAI to help them with a 6% down payment and a closing cost assistance loan.
- HomeCapacityfor homebuyers with disabilities, to provide increased financing and a flexible loan structure.
- Montgomery VII Home Ownership Program reopens for the 7th consecutive year and will offer up to $25,000 in down payment assistance, in partnership with Montgomery County.
In addition to newly launched loan products, the Maryland Mortgage Program offers a wide variety of mortgage products specifically designed to make homeownership affordable and sustainable, including flexible government and conventional loans with various levels and forms of down payment and closing cost assistance and attractive interest rates for first time homebuyers and new buyers, conventional refinancing and even student debt relief. To learn more and find out which product is right for you, visit mmp.maryland.gov and contact a participating lender.
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