First Time Home Buyers- Free Money for Down Payment
The biggest problems many first time home buyers face is coming up with money for down payment and closing costs. Even when using a 0% down payment program we will still to need to bring money to the table for closing costs. Luckily first time home buyers can get into their dream home with very little money out of pocket thanks in part to the Maryland Mortgage Program’s Grant Assist! The grant is 4% of the loan amount that we can use for our down payment and closing costs and does not have to be repaid! Let’s dive a little deeper and find out what else makes the Grant Assist such a great program and how it can help you achieve your dream of becoming a homeowner!
Who is considered a First Time Home Buyer?
Some of you may be reading this and automatically think you do not qualify for this program because you’re not a first tome home buyer. Well I have good news for you! You DO NOT have to be a first time home buyer to take advantage of the Grant Assist or any other Maryland Mortgage Program (MMP) products. MMP defines a first time home buyer as someone who has not owned a residential property for the last 3 years. Homebuyers who do not meet this requirement can still use the program however, they must buy in a designated “Targeted Area”. Targeted areas are set by the MMP and are incentives for home buyers to move to that area. All of Kent, Caroline, and Dorchester counties are considered “Targeted” areas. Therefore you don’t have to be a true first time home buyer to use this program!
The grant is 4% of the LOAN amount that we can use for down payment and closing costs. Let’s say the purchase price of your dream home is $250,000 and you are making a 3% down payment. The down payment in this instance is $7,500 and the loan amount is $242,500. The amount of the grant is 4% of $242,500 or $9,700. More than enough to cover your down payment on the loan!
Income Limits– In order to use this program you must be below the total household income limits set forth by the MMP. The income limits vary by county. If a spouse or significant other who isn’t going on the mortgage but will be moving into the home, we must account for their income to make sure you are not over the household income limits.
Purchase Price Limits– The home must be within the MMP purchase price limits. Once again these vary by county. First time home buyers in Queen’ Anne’s County income limit for a 1-2 person family is $109,320 and for Caroline County it is $111,000.
Ownership and Occupancy– The Grant Assist can only be used to purchase a home as a primary residence and the home buyers can’t own other residential property.
Liquid Assets Test– First time home buyers who have LIQUID assets (not retirement accounts) of at least 20% of the purchase price are ineligible for the program.
Getting Into Your Dream Home For Less
The Grant assist is a GREAT program to help first time home buyers looking to purchase on the Eastern Shore get in their dream home for less! Get in contact with me to schedule a free mortgage consultation. If you’re ready to act now pre-qualify here!
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