If you are looking to purchase a home in the Baltimore County area, but need help with down payment and closing costs, then 1st Mariner Bank has just the answer: the “Baltimore County Settlement Expense Loan Program” (SELP) as offered through the Department of Planning and Housing Opportunities of Baltimore County. This program is an effort to encourage first time homebuyers to consider home ownership in existing residential communities in Baltimore County. Located within the Community Conservation Area of the county, it excludes the growth areas of White Marsh and Owings Mills. Loans up to $10,000 are available to families whose income is at or below 80% of the area median income, adjusted for household size.
Here are some of the eligibility requirements:
- Buyer must complete the Homebuyer Education Curriculum before signing a real estate contract.
- All borrowers must meet income qualifications and be first time buyers that have not owned property in the last three years. Exceptions can be granted for separation, divorce, death of a spouse or prior ownership of documented substandard housing.
- Buyer must qualify for a fixed rate mortgage.
- Borrower’s post-purchase assets cannot exceed 25% of gross annual household income.
- Borrower minimum cash contribution in the transaction is equal to 5% of gross household income.
- Buyers proposed housing and debt expense must meet guidelines as stated per Baltimore County and cannot exceed said limits.
Existing property must be owner occupied, occupied by borrower, or vacant. New construction is excluded in this program. The home must have a satisfactory home inspection and meet the federal Housing Quality Standards (HQS) using an inspection firm from the pre-qualified county list.
The SELP loan amount has a minimum of $1,000 and maximum of $10,000. The terms of the loan state that the loan is deferred for (15) years (affordability period). Thereafter, the loan is forgiven after 15 years, unless sale, transfer of title, or default occurs before the end of the (affordability period) 15 years.
For more information on these programs or any of our other products at 1st Mariner Bank please feel free to contact Charlie Maykrantz at [email protected] or 410-735-2068.
The above programs are subject to change at any time and this does not constitute a guarantee on the part of 1st Mariner Bank as an obligation to offer these programs without the approval of the program administrator. All applicants must be qualified to purchase and participate in these programs per underwriting guidelines of both 1st Mariner and the program administrator.