SmartBuy Home Finance Plan for First Time Homebuyers
Help For Homebuyers with Student Loans
Downpayment Cost Help
I have so much exciting news to share to help your first time home buyer! Be on the lookout over the next few weeks with more updates because I have more exciting first time home buyer programs to share for Prince George’s, Montgomery and Howard counties.
Have you heard of SmartBuy? It is a program that the State of Maryland rolled out in 2016 to help buyers pay their student loan debt and purchase a home. The original program could only be used for DHCD properties and the inventory was very low so it did not really help too many people. On Monday, July 16th, Governor Hogan announced a $3 million state appropriation for a limited-time expansion of Maryland SmartBuy starting Monday, August 6th.
The program will help buyers with existing student loan debt which can be in repayment or deferred status with a minimum balance of $1,000 to pay it off in the form of a forgivable loan. The product will offer up to 15% of the home purchase price up to a maximum loan amount of $30,000 to pay off a buyer’s outstanding student loan debt. The whole student debt must be entirely paid off at the time of the home purchase. No remaining student loan debt may remain after the loan closing under this program.
Up to 95% of the purchase price will be financed with a first mortgage 30 year conventional amortizing mortgage loan.
The second mortgage is a 5-year forgivable loan of up to 15% of the purchase price, not to exceed $30,000. This loan will be used to pay off completely the borrower’s outstanding student debt balance at the time of home purchase. The student debt loan must be in the borrower’s name and for the borrower’s education.
The second mortgage is a 0% interest deferred loan with no monthly payments, forgivable over 5 years at 20% rate per year on each anniversary date (remainder due upon sale or refinance if the event takes place within the first 5 years from the settlement of the first mortgage).
If the borrower desires it, a third mortgage will be provided by MMP as a regular Down Payment Assistance loan of $5,000, 0% deferred (due upon sale, payoff, transfer, or refinance of the first mortgage) subordinated to the first and second mortgage.
The entire State of Maryland.
Any creditworthy borrower, based on Fannie Mae and PMI underwriting standards with student debt of at least $1,000 meeting the MMP credit score requirements of 640 and household income limits.
As always, please feel free to contact me with any questions or to prequalify any of your buyers.
First Home Mortgage
cell: 410.725.9451| fax: 443.725.0519
NMLS ID#: 455836