Q. What is the Builder/Developer Incentive Program?
A. The Builder/Developer Incentive Program enables eligible homebuyers to
receive more downpayment and/or closing cost assistance than is available
through the standard downpayment and closing cost assistance programs.
Q. Who qualifies for the Builder/Developer Incentive Program?
A. Any borrower who receives a contribution for downpayment and/or closing cost
assistance from a participating builder or developer and meets the eligibility
criteria under the Maryland Mortgage Program (MMP) may participate in the
Builder/Developer Incentive Program.
Q. How does it work?
A. DHCD will match contributions dollar-for-dollar, up to $5,000, toward
downpayment and closing costs from participating builders and developers who
are interested in expanding affordable homeownership opportunities. The
builder/developer’s contribution may be combined with assistance from
local jurisdictions, unions and/or nonprofit agencies; however, the
Builder/Developer Incentive Program match will not exceed $5,000. The match is
in the form of a 0% deferred loan that is repayable at the time of payoff or
refinance, or upon the sale or transfer of the house. This assistance is over
and above what is available through the standard downpayment
and closing cost assistance programs, allowing some borrowers to have
more choices in buying a home.
Q. What is the standard downpayment and closing cost assistance
programs offered by DHCD?
A.
DSELP a deferred
loan at 0%
Q. Who is eligible for DSELP?
A. Individuals or families who are approved to purchase a home using a
loan through the Maryland Mortgage Program can apply for assistance.
Q. How does the Builder/Developer Incentive Program help when I
am purchasing a home?
A. Borrowers who are eligible for a DSELP loan through the Maryland Mortgage
Program, can receive up to an additional $5,000 from the Builder/Developer
Incentive Program (based on dollar-for-dollar matching contributions) to add to
the amount available under the regular DSELP Program.
Example: Builder/developer contribution = $2, 500
DSELP loan
|
$3,500
|
Builder/developer contribution
|
2, 500
|
Builder/Developer Incentive Program dollar-for-dollar match
|
2, 500
|
Total closing cost assistance
|
$8,500
|
Q. My local government offers a program that makes
assistance available if I move within a certain distance of my place of
employment. Can I use the Builder/Developer Incentive Program in conjunction
with the local government's program?
A. Yes. The local government’s assistance can be combined with
the builder/developer’s contribution; however, the amount of the
dollar-for-dollar match provided through the Builder/Developer Incentive
Program will not exceed $5,000.
Example
DSELP
|
$3,500
|
Builder/developer contribution
|
1,000
|
Local government contribution
|
1,000
|
Builder/Developer Incentive Program dollar-for-dollar match
|
2,000 (matches builder/developer/
jurisdiction funds)
|
Total closing cost assistance
|
$7,500
|
Q. Who are the participating builder/developer
partners?
A. The Maryland Department of Housing and Community Development maintains
a list of builders and developers who are concerned about affordable housing
and have agreed to participate in the program.
Q. How do I get started?
A. Ask your builder or developer if they participate in the
Builder/Developer Incentive Program and how much assistance is available to
you.
Q. What do I do after I find out what is available
through my builder/developer?
A.
-
Complete homebuyer section of the Verification of Partner Contribution form and
give it to your builder/developer to complete the appropriate section. Your
builder/developer may be able to help you determine if additional contributions
are available from local jurisdictions, unions, and/or nonprofit organizations.
-
Select a participating CDA lender and make an
appointment to pre-qualify for a CDA mortgage loan.
-
Provide the lender with the original of the fully completed and executed
Verification of Partner Contribution form.
-
Talk to your lender about homebuyer education before signing a contract
of sale. Please note that in the City of Baltimore and Anne Arundel, Baltimore,
and Harford counties, you must meet certain homebuyer education/housing
counseling requirements. Refer to the Counseling information
on our website.
Q. Where can I get additional information?
A. You may call toll-free 1-800-638-7781 or visit our website at
www.MMProgram.org