First Home Mortgage is excited to roll out a new program to assist first-time homebuyers, community partners and veterans with down payment and closing cost assistance.
The FHLB program provides loans up to $7,500 to homebuyers that can be used towards the down payment and/or closing costs of their new home. These loans are forgivable after 5 years, meaning no repayment is necessary! There are 3 separate programs available:
First-Time Homebuyer Product– Maximum loan assistance of $5,000, minimum borrower contribution of $1,000.
Community Partners Product– Maximum loan assistance of $7,500, minimum borrower contribution of $1,000, non-first-time homebuyers are eligible, available to law enforcement officers, educators, health care workers, firefighters and first responders.
Veterans Purchase Product– Maximum loan assistance of $7,500, no minimum borrower contribution, non-first-time homebuyers are eligible, available to homebuyers who are currently serving, or have served in the U.S. military, their spouse or their surviving spouse.
These programs are only available on conventional, fixed-rate purchase loans. Funds are provided on a first come, first-served basis until funds are depleted. There is mandatory Homebuying Counseling for borrowers.
Reach out to your Loan Officer to learn more!
Buying a home is a big, if not the biggest, purchase you are going to make. You may have heard there are a lot of costs when it comes to buying, and hearing the word “down payment” may strike a small sense of panic, but it doesn’t have to! There are many programs offered to help home buyers afford their dream house.
State Housing Finance Agencies offer state specific programs to residents who need help purchasing a home. These programs can be in the form of a loan or grant, and assist with closing costs, down payment, and even student debt relief.
A few of our most popular homeownership programs are geared for home buyers looking to purchase in the state of Maryland and Washington DC. Take a look below to see just a few options that are available.
DC Open Doors– DC Open Doors is a program offered by the DC Housing Finance Agency (DCHFA) and provides borrowers with options to purchase in the District of Columbia. Qualified first time homebuyers and repeat buyers are eligible for the program. DC Open Doors provides:
- Down payment assistance loans (DPAL) available to qualified borrowers in the full amount of your required minimum down payment, requiring less up-front money out of your pocket.
- DPAL is a 0% interest rate, 5-year forgivable loan, meaning you only have to repay the loan if you sell, refinance or no longer occupy the property within the first 5 years.
DC Home Purchase Assistance Program (HPAP) – Available to first time homebuyers providing assistance with down payment and closing costs. HPAP provides:
- Down payment assistance up to $80,000 based on household income.
- Closing costs assistance for 4% of the home purchase price or $4,000 (whichever is less).
Maryland Mortgage Program (MMP) – The Maryland Mortgage Program is offered by the Maryland Department of Housing and Community Development and provides borrowers with program options to purchase in the state of Maryland. The 3 main loan program types available through MMP are:
- Grant Assist: Provides up-front financing to assist borrowers with down payment and closing costs. Grants do not need to be repaid.
- Special Assistance Grant Program: Grant of $1,500 or $2,500 (depending on the Area Median Income). May be combined with other MMP conventional loans.
- Flex 4% Grant: Grant of 4% of the first mortgage. May not be combined with other MMP programs.
- Loan Assist: Provides up-front financing to assist borrowers with down payment and closing costs.
- 1st Time Advantage 3% Assistance: No-interest second loan equaling 3% of the first mortgage. No payments are due on the second loan until the first mortgage is paid off, refinanced or transferred.
- SmartBuy 2.0: Helps qualifying homebuyers pay off student debt during the purchase of their home.
- Rate Assist: Provides low interest rate options for homebuyers which lowers the monthly payments.
- Maryland Preferred Rate: Offered on 30-year, fixed rate loans. Cannot be combined with closing cost or down payment assistance.
There are also a number of other state specific agencies, such as Virginia Housing Development Authority (VHDA), Rhode Island Housing (RIH), and MassHousing, to name a few. It’s always a good idea to know all of your options, and which one is best before you take the plunge. All of our loan officers have a wealth of knowledge on each of these programs and will be able to provide you with additional information. Be sure to contact one of them today to find your best option!
*Conditions and guidelines vary depending on the agency
The Maryland Mortgage Program has announced their new Special Assistance Grant Program to assist homebuyers with down payment and closing costs while purchasing a home. The MMP offers a range of programs that help make purchasing and owning a home more affordable. With this Grant, eligible borrowers will receive $2,500 or $1,500 (depending on the Area Median Income), which can be added on to the Maryland Mortgage Program’s existing programs.
Highlights of this product:
- Grant of $2,500 for borrowers with income not exceeding 50% of the Area Median Income (AMI), Or a grant of $1,500 for borrowers above 50% and not exceeding 80% of the AMI
- Used for both closing cost and down payment assistance
- Conventional mortgages using Freddie MAC’s HFA Advantage™
- May be used with other MMP products, such as Regular Conventional Loan Assist, Conventional Grant Assist, Conventional Rate Assist, and 1st Time Advantage Loans
- May not be combined with Maryland SmartBuy or refinance products
- Regular down payment assistance may be layered with this product
- Partner Match Program funds may be layered with this product
- Maryland HomeCredit Program may be used (MMP will waive $450 MMP fee as an additional incentive)
- Must be purchasing in Maryland
Income Eligibility Per County
County Income Limit 80%/50% AMI
- Allegany $44,400/$27,750
- Anne Arundel $75,920/$47,450
- Baltimore $75,920/$47,450
- Baltimore City $75,920/$47,450
- Calvert $93,760/$58,600
- Caroline $57,040/$35,650
- Carroll $75,920/$47,450
- Cecil $69,920/$43,700
- Charles $93,760/$58,600
- Dorchester $57,040/$35,650
- Frederick $93,760/$58,600
- Garrett $57,040/$35,650
- Harford $75,920/$47,450
- Howard $75,920/$47,450
- Kent $59,680/$37,300
- Montgomery $93,760/$58,600
- Prince George’s $93,760/$58,600
- Queen Anne’s $75,920/$47,450
- Somerset $57,440/$35,900
- St. Mary’s $82,720/$51,700
- Talbot $61,920/$38,700
- Washington $53,600/$33,500
- Wicomico $57,440/$35,900
- Worcester $57,440/$35,900
Want to see if you qualify for this Special Assistance Grant? Contact one of our Maryland Loan Officers, today.
Rhode Island Housing (RIH) has introduced a new Extra Assistance Loan for first-time homebuyers, effective May 21, 2018. This Extra Assistance Loan may be used towards the borrower’s down payment and/or closing costs. RIH offers affordable and innovative lending opportunities, education, resources and programs to assist Rhode Islanders to buy, build and keep a good home.
Extra Assistance Loan Requirements:
- May be combined with all RIHousing first mortgage products
- First-time homebuyers only (unless in targeted area)
- Must purchase in Rhode Island
- Maximum LTV/CLTV per first mortgage product requirements
- 15-year term
- May be combined with First Down Program
- Interest rate per first mortgage product requirements
- No maximum household income limits
Eligible Property Types/Loan Limit and Use of Funds:
- 1 unit or Condominium – 6% of purchase price not to exceed $12,000
- 2 units – 6% of purchase price not to exceed $12,000 (rental income may be used for qualifying purposes)
- 3-4 units – $7,500 loan maximum to be applied to closing costs only (rental income may be used for qualifying purposes)
If combining with First Down Program:
- Extra Assistance loan used only for closing costs
- 1 unit – $6,500 Extra Assistance Loan maximum
- 2-4 units – $7,500 Extra Assistance Loan maximum
The new Extra Assistance loan is replacing Rhode Island Housing’s Amortizing Second Mortgage and Closing Cost Assistance Loan. For more information, or to see if you qualify, contact one of our licensed Rhode Island Loan Officers, today.
On January 19th, 2018, the Maryland Department of Housing and Community Development honored its top four performing lender partners of 2017 – First Home Mortgage Corporation acknowledged as their Top Producing Lender. With an audience of nearly 300 program partners, the department debuted their redesigned website, presented their new enhancements and processes on new loan and down payment assistance products and expressed their gratitude for these top performing lenders.
Did you know that between 2015 and 2017 the Maryland Mortgage Program assisted more than 7,800 homebuyers? This means over $39 million was provided for down payment assistance and $1.5 billion in mortgages.
According to the Department of Housing and Community Development, “the Maryland Mortgage Program has been the state’s flagship homeownership program for more than 35 years, providing fixed-rate mortgages, primarily to first-time homebuyers, along with down payment and closing cost incentives.” With the announcement of these new loan and program enhancements, homeownership in Maryland is even more affordable than ever before.
These enhancements include:
- The existing 4% Grant Assist program for down payment assistance can now be used for FHA loans as well as Conventional, USDA, and VA loans
- Creation of the Maryland 6% Opportunity Grant to increase access to homeownership for lower income homebuyers (for HFA Advantage mortgages only)
- New Maryland Credit 640 program to assist homebuyers with FICO scores in the 640-659 range when purchasing a home in Maryland
- New program website to be more user-friendly and responsive for all customers
To read more on First Home’s announcement as Top Producing Lender by the Maryland Department of Housing and Community Development, click here.
To learn more on how to get started with a Maryland Mortgage Program, contact a First Home Loan Officer.
Looking to buy a home in Rhode Island or Florida? This assistance may be perfect for you! Rhode Island Housing and Florida Housing are both offering $1,500 in closing costs to qualified borrowers. Rhode Island Housing is the state’s housing finance agency that ensures those who live or work in Rhode Island can secure a healthy, attractive home that meets their budget and needs. Florida Housing provides a range of affordable housing opportunities for residents that help make Florida communities great places in which to live, work and do business.
Rhode Island Housing
In collaboration with Fannie Mae, Rhode Island Housing is offering a Summer Closing Cost Credit Program on all Fannie Mae purchase transactions. This $1,500 credit is applied to the borrower’s closing costs (including prepaid charges and upfront) but may not be used for down payment.
- Borrower’s income may not exceed 80% of applicable area median income ($57,680 is the current AMI for Rhode Island)
- Applied only to Fannie Mae purchase transactions
- For new loans starting July 20, 2017
- Repayment not required
Florida Housing will be giving borrowers $1,500 as a closing cost assistance grant. These funds may only be used for additional closing cost assistance to first served, qualified borrowers on Conventional HFA Preferred and HFA preferred PLUS loans.
- Credit qualifying income at 80% AMI or lower
- Loan Application qualifying income (not based on household income)
- Can be combined with HFA Preferred Loan with FL Assist DPA ($7,500, $9,000 total including closing cost grant)
- Can be combined with 3% PLUS DPA product (3% of sales price plus additional $1,500 for closing cost assistance)
Contact a First Home Loan Officer today to learn more about RI’s and FL’s closing cost assistance before they run out! Click Here.