Down Payment Assistance Programs/First Time Homebuyer Programs
The Home Purchase Assistance (HPAP) program provides interest-free loans and closing cost assistance to qualified applicants to purchase single family houses, condominiums, or cooperative units in the District. The loan amount is based on a combination of factors, including income, household size, and the amount of assets that each applicant must commit toward a property’s purchase. The loan is subordinate to a private first trust mortgage.
Eligible applicants can receive a maximum of $80,000 in gap financing assistance and an additional $4,000 in closing cost assistance. The HPAP loan for borrowers with incomes below 80 percent of the area median income (AMI) is deferred until the property is sold, refinanced to take out equity, or is no longer their primary residence. Moderate-income borrowers who earn between 80 percent and 110 percent AMI will have payments deferred for five years with a 40-year principal-only repayment period.
The maximum first trust loan amount cannot exceed $510,400, the conventional conforming loan limit.
If you are a first-time home buyer, you could be eligible for up to $10,000 in down payment and closing cost toward the purchase of your first home.
- As of July 1, 2020, Pathway To Purchase available funds are: $281,148.03
Eligible Properties – Any residential property including:
- Short Sale
- New Construction
Pathway to Purchase is a 0% interest, deferred payment loan. The loan is forgiven after 10 years!
Loan Terms – Purchaser must pay back the loan in full when the home is sold, transferred or ceases to be the primary residence of the buyer(s) within the 10-year affordability period.
Purchase Price Limits
- $337,000 for resale
- $399,000 for new construction
1st Time Advantage loans are designed to offer eligible first-time homebuyers the lowest 30-year fixed interest rate available for Maryland Mortgage Program loans. The Maryland HomeCredit Program (mortgage credit certificates) may not be layered with this line of products.
Maryland SmartBuy helps homebuyers with qualifying student debt purchase a home. The program works by paying off student debt during the purchase of the home through special Maryland Mortgage Program (MMP) financing. Maryland SmartBuy involves the purchase of move-in-ready homes currently owned by, and available from, the state of Maryland.
Maryland SmartBuy 2.0 gives homebuyers an opportunity to purchase any home in Maryland that meets Maryland Mortgage Program guidelines while paying off student debt. This limited time program provides all of the student debt relief offered by the original Maryland SmartBuy while making more homes eligible for purchase.