Ocean City Today

State loan options help homebuyers meet requirements

Real Estate Report
By Lauren Bunting | Mar 08, 2018

(March 9, 2018) In addition to low-money-down loans, such as FHA (3.5 percent down loan) and the USDA (100 percent financing loan), Maryland buyers can look to the State of Maryland, which offers many products to help achieve the dream of homeownership.

The Maryland Mortgage Program (MMP) offers a range of programs that make purchasing and owning a home more affordable.  ​​​​​

There are three types of 30-year, fixed-interest home loan programs available to eligible homebuyers. Grant-assist and loan-assist programs offer upfront financial assistance for down payment and closing costs to help homebuyers meet home purchase requirements. Rate-assist programs provide low interest rate options that lower monthly repayments over the life of the loan. ​​​​​

Maryland Mortgage Loan Assist: 30-year, fixed-rate home loan products providing up to $5,000 in down payment and closing costs in the form of a no-interest, deferred loan. Homebuyers who use one of the loan-assist products receive a combination of upfront financial assistance and low interest rates, making homeownership affordable aat the time of purchase and during the years ahead.

Down payment and closing cost assistance is provided in the form of an additional no-interest, deferred loan. No repayments are required on this second loan through the life of the loan, and interest does not accumulate, meaning repayment done is in with the exact amount borrowed, even 30 years later. ​​​​​

Maryland Mortgage Grant Assist: 30-year, fixed-rate home loan products providing grant funding that can be used for down payment or applied to closing costs. Grants do not need to be repaid. There is a 4 percent grant assist and a 6 percent opportunity grant available.

Maryland Mortgage Rate Assist: 30-year, fixed-rate home loan products with MMP’s lowest available interest rate. Down payment and closing cost assistance are not available from MMP with these products, however some special initiatives combine rate assist products with third party funds.

Maryland Preferred Rate offers the lowest possible interest rate on a 30-year, fixed-interest home loan. It does not include, nor can it be combined with down payment or closing cost assistance.

More details are available on the Maryland Mortgage website at mmp.maryland.gov.

– Lauren Bunting is an Associate Broker with Bunting Realty, Inc. in Berlin.

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