Affordable Housing Programs in today’s market?

This is a good topic that has several different answers especially in this market.

For this article we will focus on the Maryland Mortgage Program (MMP) formally known

to most in the industry as CDA.

This program has been around since I been in the business. The MMP program

allows for down payment assistance from in the form of a ZERO interest rate, ZERO

payment loan until the mortgage is either paid off (house sold or refinanced). The DPA

(Down Payment Assistance) program can range between $6000 up to 5% of the homes

purchase price. To take advantage of the above DPA you must be a first-time

homebuyer which as far a MMP is concerned, you must not have owned a home

ANYWHERE for the past 3 years.

Mortgage rates vary and are subject to change at any time without notice just

like regular mortgage rates. The rates are typically published daily but can change

mid-day if the market warrants. The program does allow for conventional, FHA, VA and

USDA loans as long as the borrower meets both all applicable income limits etc.

The is also the ability to couple the down payment assistance with the HAP

(Homebuyer Assistance Program) for Frederick County assuming fund availability as

well as meeting program requirements. The HAP program can potentially provide an

additional $10k - $12k in down payment assistance on top of what the MMP provides.

Additionally, MMP offers a Maryland “Smart Buy” program which allows

conventional purchasers with at least 3% down to eliminate student debt up to a

maximum amount of $20,000 in student debt. To take advantage of this program the

borrower must not have any more than $20,000 in student debt and all of the debt

must be eliminated with the loan. Again, this is a ZERO interest, ZERO payment loan

deferred loan, forgivable over 5 years at a rate of 20% per year on each anniversary of

the note date (NO EXCEPTIONS).

For more information on any of these programs please do not hesitate to contact

Mark Ebinger NMLS #576332 – (Cell) 301-788-0996 or (Email)

mark.ebinger@guildmortgage.net