What are some down payment assistance programs?
The Maryland Department of Housing and Community Development’s (MDHCD’s) Down Payment Assistance and Partner Match Programs provide three forms of assistance:Zero-percent interest loans, which typically become payable only when your sell the home or refinance. So there are no monthly paymentsForgivable loans, which are typically forgiven a bit at a time over several years. …Cash grants, which never have to be repaid. These are provided only by MDHCD’s partners
How does "down payment assistance" really work?
How Is Down Payment Assistance Delivered?Grants: Down payment grants do not have to be repaid, including first-time homebuyer grants. …Deferred loans: Many down payment assistance grants are loans with deferred payments, in combination with low interest rates. …0% loans: These loans carry no interest but still need to be repaid within a certain timeframe, such as 120 months. …More items…
What is down payment assistance and do you qualify?
Down payment assistance is a special financing program that helps make homeownership a reality for homebuyers who otherwise may not have the funds for a down payment. In order to qualify, both you and the home must meet certain requirements in order to receive assistance.
What you should know about down payment assistance?
The minimum credit score is 620. While you may be able to qualify for another loan program with a lower credit score. …There are income limits. These income limits are based on the county that you live in. …The property you are purchasing must be a primary residence. Down payment assistance loans are not allowed on second homes or investment properties.