08/20/2022
Maryland SmartBuy Program 3.0 - Exciting New Changes to the Program
Hello All,
The Maryland Mortgage Program (MMP) just announced some exciting changes to their SmartBuy program! More money to help buyers pay off their college debt through the purchase of a home!
PROGRAM HIGHLIGHTS
Pay off existing student debt at closing with a 5-year forgivable loan
Up to $50,000 in student loan debt to be paid off calculated by the purchase price x 15% (a purchase price of $333,500 gives the buyer the maximum of $50,000 for their college debt)
A 0% interest deferred loan with no monthly payment, forgivable over 5 years at 20% rate per year
The student loan may be in repayment or deferred status
The entire student debt must be entirely paid off at the time of the home purchase. No remaining student loan debt may remain after the loan.
MMP also offers 3 second mortgage down payment options: 1) $6,000; 2) a loan equal to 4% of the first mortgage; or 3) a loan equal to 6% of the first mortgage (this choice is only available to borrowers earning 50% or less of area median income). All are 0% deferred loans (due upon sale, payoff, transfer, or refinance of the first mortgage)
720 credit score required and 5% down payment
Other available down payment assistance programs can be combined with this in the form of employer or non-profits organizations
Available in every county in the State of Maryland
Here is an example of how this program works. I am currently working with a buyer that has $45,000 in student loan debt and she is purchasing a $315,000 house. This program will help extinguish ALL of her student loan debt at settlement because she qualifies for the maximum help through the program (a sales price of $315,000 will qualify a buyer for assistance up to $47,250 - $315,000 x 15%). That's a pretty good deal, right?
I also have a flyer for the program so if you would like a copy, please email me.
As always, please feel free to contact me with any questions or to prequalify any of your buyers.