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City Employee Home Ownership Program
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Starting Date: May 1, 2005
Amount of Funds Available: $1,000,000 for 2005
Maximum Assistance: $3,000 per family in closing cost and downpayment assistance
Form of Assistance
In Baltimore City, ADDI assistance will be in the form of a forgivable loan with a five-year term. The loan will reduce by 20% a year as long as the family continues to use their house as their principal residence. If the property is sold or rented during the first five years, a portion of the funds must be repaid.
Federal Regulations
Eligible families are first-time homebuyers with family incomes 80% or below the area median (see chart below). Eligible houses must be free of any flaking, peeling, or chipping paint inside and outside - and the home inspection must document no unstable paint surfaces. Home inspectors must be members of the NAHI (National Association of Home Inspectors) or ASHI (American Society of Home Inspectors).
Baltimore Requirements
Housing counseling is required for this and all City homeownership incentive programs. Click here for a list of city-approved counseling agencies. Home inspections are required. Only Fannie Mae and Freddie Mac approved lenders are allowed. Participants are required to invest $1,000 from their personal funds in the purchase of the house.
For questions and an application, call 410-396-4160.
2005 Income Limits - American Dream Downpayment Initiative
The total family income of all adult family members combined must be below the following limits:
NUMBER OF PERSONS
IN HOUSEHOLD/FAMILY |
LIMIT |
| 1 person |
$40,450 |
| 2 person |
$46,200 |
| 3 person |
$52,000 |
| 4 person |
$57,750 |
| 5 person |
$62,400 |
| 6 person |
$67,000 |
| 7 person |
$71,600 |
| 8 person |
$76,250 |
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American Dream Downpayment Initiative
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Starting Date: May 1, 2005
Amount of Funds Available: $1,000,000 for 2005
Maximum Assistance: $3,000 per family in closing cost and downpayment assistance
Form of Assistance
In Baltimore City, ADDI assistance will be in the form of a forgivable loan with a five-year term. The loan will reduce by 20% a year as long as the family continues to use their house as their principal residence. If the property is sold or rented during the first five years, a portion of the funds must be repaid.
Federal Regulations
Eligible families are first-time homebuyers with family incomes 80% or below the area median (see chart below). Eligible houses must be free of any flaking, peeling, or chipping paint inside and outside - and the home inspection must document no unstable paint surfaces. Home inspectors must be members of the NAHI (National Association of Home Inspectors) or ASHI (American Society of Home Inspectors).
Baltimore Requirements
Housing counseling is required for this and all City homeownership incentive programs. Click here for a list of city-approved counseling agencies. Home inspections are required. Only Fannie Mae and Freddie Mac approved lenders are allowed. Participants are required to invest $1,000 from their personal funds in the purchase of the house.
For questions and an application, call 410-396-4160.
2005 Income Limits - American Dream Downpayment Initiative
The total family income of all adult family members combined must be below the following limits:
NUMBER OF PERSONS
IN HOUSEHOLD/FAMILY |
LIMIT |
| 1 person |
$40,450 |
| 2 person |
$46,200 |
| 3 person |
$52,000 |
| 4 person |
$57,750 |
| 5 person |
$62,400 |
| 6 person |
$67,000 |
| 7 person |
$71,600 |
| 8 person |
$76,250 |
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Get with the program
The More House 4 Less Maryland Mortgage Program, that is. And buy EVEN more house 4 less in 2006 with CDA.
CDA has added more loan products, offering a range of interest rates and loan terms giving its borrowers more flexibility. And, CDA has gone conventional. With private mortgage insurance now available, borrowers have more buying power.
Finance your home with our below market mortgage interest rates. CDA rates are fixed, so there'll be no surprises during the term of your loan.
CDA has flexible loans to fit your needs. There are a variety of factors to weigh when financing your new home-your cash flow, your monthly mortgage payment, how long you plan to live in the house. Choose the loan that's right for you:
The home of your dreams
With a CDA mortgage loan, you can buy the home of your dreams. It takes all types, what's yours?
- Existing homes; new construction (if in a Priority Funding Area *)
- Townhouses; detached or semi-detached homes; condominium units; modular or manufactured homes with the State seal of approval for code compliance
- Investment property not eligible
- Home must be occupied as principal residence
Our insurers
Government Mortgage Insurer/Guarantor:
- Federal Housing Administration (FHA) insurance
- Veterans Administration (VA)
- Rural Housing Services (RHS) guaranty
- Maryland Housing Fund (for 40-year mortgage only)
Private Mortgage Insurers:
- Genworth Financial (GE)
- Mortgage Guaranty Insurance Corporation (MGIC)
- Radian Guaranty, Inc. (RGI)
- Republic Mortgage Insurance Company (RMIC)
- PMI Mortgage Insurance Company (PMI)1
- Triad Guaranty Insurance Corporation (TGIC)
- United Guaranty Residential Insurance Company (UGRIC)
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Q: What is the MMP PLUS Program?
A: This program is a premium priced first mortgage program that offers a first mortgage (at a slightly higher interest rate) that provides borrowers with a 2% closing cost assistance grant.
Q: How many points are charged for this loan?
A: The borrower pays zero points.
Q: How much is the closing cost assistance?
A: The grant is equal to 2% of the first mortgage loan amount.
Q: Can I use the 2% grant for my down payment?
A: Yes, if the insurer/guarantor permits. FHA permits the 2% grant to be used to fund closing costs but not the down payment.
Q: What is the term of the MMP PLUS mortgage?
A: There are several terms offered with this Program. The borrower can choose between the 30-year term, the 5/30 Mortgage Program (35-year term that is interest only for the first five years with amortized payments for the remaining 30 years), or the 40-year term.
Q: Do I need to meet the same eligibility requirements as in the regular MMP program?
A: Yes, the eligibility requirements such as the Income Limits, Maximum Acquisition Costs and first time homebuyer requirements are the same. |
DSELP Closing Cost Assistance
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DOWNPAYMENT & SETTLEMENT EXPENSE LOAN PROGRAM
Q: What is DSELP?
A: DSELP is the Downpayment and Settlement Expense Loan Program. This program helps eligible borrowers purchase a home by funding a portion of their closing costs.
Q: Who is eligible for a DSELP?
A: Individuals or families who are approved to purchase a home using a CDA first mortgage loan can apply for a DSELP. Please note that in Anne Arundel, Baltimore, Garrett, Harford, Montgomery and St. Mary's counties, you must receive homebuyer education/housing counseling and obtain a housing counseling certificate prior to making an offer and executing a contract of sale on a home.
Q: How much can I borrow with DSELP?
A: DSELP can provide up to $5,000. Spring Special! -- Get up to $10,000 for loans reserved now through April 30, 2006!
Q: What is the interest rate on the DSELP loan?
A: DSELP is offered at a 0% interest rate.
Q: When must I pay back the DSELP?
A: DSELP is a deferred loan that is repayable when you payoff or refinance the home or upon sale or transfer of the house you financed through CDA.
Q: Can I cover all of my settlement expenses using DSELP?
A: No. The borrower must contribute at least 1% of the amount of the first mortgage towards their own settlement expenses.
Q: How do I get a DSELP?
A: When you apply to a participating lender for a CDA first mortgage loan to buy your home, ask the lender to qualify you for a DSELP.
Q: Can I use DSELP with a non-CDA first mortgage loan?
A: No. DSELP can only be used with a CDA first mortgage loan.
Q: Who insures or guarantees my first mortgage loan when I get a DSELP?
A: CDA first mortgage loans may be insured or guaranteed through the following:
- participating private mortgage insurers
- government insurers/guarantors (FHA, VA or Rural Housing Service (RHS)
- Maryland Housing Fund (for the 40-year mortgage product only)
Q: Is my DSELP loan insured?
A: No. However, it does get recorded as a second lien against the home that is purchased.
Q: Is DSELP available only in certain areas?
A: No. DSELP is available statewide.
Q: Are there any other special requirements for DSELP?
A: Yes. Some counties require that borrowers take homebuyer education workshops and have a housing counseling certificate before the borrower signs a contract of sale. Ask your lender about homebuyer education requirements or contact CDA for more information. |
House Keys For Employees Program
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Q. What is the House Keys 4 Employees Program?
A. House Keys 4 Employees enables eligible homebuyers to receive more downpayment and/or closing cost assistance than is available through the standard DSELP Program.
Q. Who qualifies for House Keys 4 Employees?
A. Any borrower who receives a contribution for downpayment and/or closing cost assistance from an employer, local government, union, or nonprofit agency and meets the eligibility criteria under the Maryland Mortgage Program (MMP) may participate in House Keys 4 Employees.
Q. How does it work?
A. DHCD will match contributions dollar-for-dollar, up to $5,000, toward downpayment and closing costs from participating employers. The employer’s contribution may be combined with assistance from local jurisdictions, unions and/or nonprofit agencies; however, the House Keys 4 Employees match will not exceed $5,000. The match is in the form of a 0% deferred loan that is repayable at the time of payoff or refinance, or upon the sale or transfer of the house. This assistance is over and above what is available through the standard downpayment and closing cost assistance programs, allowing some borrowers to have more choices in buying a home.
Q. What are the standard downpayment and closing cost assistance programs offered by DHCD?
A. There are two types of closing cost assistance available:
- DSELP – a deferred loan at 0%
- MMP-Plus – a grant equal to 2% of the loan amount (see below)
Q. May I apply for assistance from both Programs?
A. You may select either the DSELP or MMP-Plus Program.
If you elect to use the MMP-Plus Program, you will pay a slightly higher interest rate and,
• if your loan is insured by FHA, MMP-Plus may be used to fund closing costs only.
• if your loan is insured by a private mortgage insurance company or guaranteed by VA or RHS, MMP-Plus may be used to fund both downpayment and closing costs as permitted by the insurer/guarantor.
Q. Who is eligible for DSELP or MMP-Plus?
A. Individuals or families who are approved to purchase a home using a loan through the More House 4 Less Maryland Mortgage Program can apply for assistance.
Q. How does House Keys 4 Employees help when I am purchasing a home? A. • Borrowers who select a DSELP loan through the More House 4 Less Maryland Mortgage Program, can receive up to an additional $5,000 from House Keys 4 Employees (based on dollar-for-dollar matching contributions) to add to the amount available under the regular DSELP Program.
• Borrowers who select an MMP-Plus grant through the More House 4 Less Maryland Mortgage Program, can receive up to an additional $5,000 from House Keys 4 Employees (based on dollar-for-dollar matching contributions) to add to the 2% closing cost assistance grant.
DSELP Program
Example 1: Employer contribution = $5,000
| DSELP loan |
$5,000 |
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| Employer contribution |
5,000 |
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| House Keys 4 Employees dollar-for-dollar match |
5,000 |
(up to $5,000 max) |
| Total closing cost assistance |
$15,000 |
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Example 2: Employer contribution = $1,000
| DSELP loan |
$5,000 |
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| Employer contribution |
1,000 |
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| House Keys 4 Employees dollar-for-dollar match |
1,000 |
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| Total closing cost assistance |
$7,000 |
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Q. My local government offers a program that makes assistance available if I move within a certain distance of my place of employment. Can I use House Keys 4 Employees in conjunction with the local government's program? A. Yes. The local government’s assistance can be combined with the employer’s contribution; however, the amount of the dollar-for-dollar match provided through House Keys 4 Employees will not exceed $5,000.
Example
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DSELP |
$5,000 |
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| Employer contribution |
1,500 |
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| Local government contribution |
1,500 |
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| House Keys 4 Employees dollar-for-dollar match |
3,000 |
(matches employer/jurisdiction funds) |
| Total closing cost assistance |
$11,000 |
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Q. Who are the participating employer partners? A. The Maryland Department of Housing And Community Development will maintain a list of employers who are concerned about affordable housing and have agreed to participate in the program. A. Ask your Human Resources Department if your employer participates in House Keys 4 Employees and how much assistance is available to you.
Q. What do I do after I find out what is available through my employer? A. 1.Complete employee section of the Verification of Partner Contribution form and give it to your employer to complete the appropriate section. Your employer may be able to help you determine if additional contributions are available from local jurisdictions, unions, and/or nonprofit organizations. 2. Select a participating CDA lender in your area and make an appointment to pre-qualify for a CDA mortgage loan. 3. Provide the lender with the original of the fully completed and executed Verification of Partner Contribution form. 4. Talk to your lender about homebuyer education before signing a contract of sale. Please note that in Anne Arundel, Baltimore, Garrett, Harford, Montgomery, and St. Mary's counties, you must receive homebuyer education/housing counseling and obtain a housing counseling certificate prior to making an offer and executing a contract. 5. A list of participating CDA lenders and homeownership counseling agencies is included in the homebuyer's kit and available on-line at www.morehouse4less.com.
Q. Where can I get additional information?
HOUSE KEYS 4 EMPLOYEES PROGRAM (HK4E)
List of Participating Employers
The following employers have joined CDA's newest homeownership initiative, House Keys 4 Employees, an employer partnership program to help Maryland's workforce become homeowners through a creative match program with the State of Maryland. Employees who work for these partner employers can contact their Human Resources Department to find out more information about their employer’s requirements for participation.
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