The Maryland SmartBuy initiative can help qualified applicants with eligible student debt purchase a home. The program offers highly attractive financing and closing cost assistance for move-in-ready homes, including loan forgiveness of up to 15% of the purchase price to eliminate student debt. Maryland SmartBuy mortgage loans are provided through the department’s Maryland Mortgage program, and come with the security that only the state’s flagship program can provide.
Maryland recently rolled out this $10 million program that lets people with education loans purchase a home and wipe out college debt at the same time. SmartBuy uses an innovative model to clear a path to homeownership. If a buyer has at least 5 percent for a down payment, the state will provide up to 15 percent of the purchase price toward outstanding student loans. Any remaining balance must be paid in full by the closing date. (Yes, you read that right!)
Say a buyer with $35,000 in student loans is interested in a $200,000 house. SmartBuy would cover $30,000 of that debt — an amount equal to 15 percent of the purchase price — leaving the buyer responsible for the remaining $5,000.
To qualify, buyers must be in good standing on their student loans and have at least $1,000 in debt. The purchase also must be financed through the Maryland Mortgage Program, which arranges home loans for first-time buyers in the state. Homeowners must remain in the house for at least five years to have the student debt forgiven.
Only homes owned by the state’s housing department are eligible. White said the department has nearly 20 move-in-ready homes for sale, ranging in price from $70,000 to $310,000 and scattered across the state. Several properties are located in Baltimore and Prince George’s County, areas that were hit hard by the housing crisis. For more information, please click here or visit: http://mmp.maryland.gov/Pages/SmartBuy/default.aspx
The Maryland Mortgage Grant Assist Program gives eligible homebuyers who use the Maryland Mortgage Program to purchase their home a grant valued at 4% of the first mortgage which is applied to closing costs. This grant does not need to be repaid, and funds available through this grant in excess of closing costs are applied to principal reduction of the purchase. The Maryland Mortgage Program has made homeownership more affordable for thousands of families, and comes with the security that only the state’s flagship homeownership program can provide. For more information, click here.
Contact me for more home listings. Click here to see a cute listing in North Beach that is eligible for the SmartBuy Program!
Information Courtesy of: