| INTEREST RATE: |
Fixed interest rate for the entire term; Refer to the
Zero Point + 3% Closing Cost Assistance Grant Interest Rate on the
website |
ORIGINATION/DISCOUNT FEES : |
No origination or discount fee permitted |
INCOME LIMITS1: |
Refer to table |
MAXIMUM ACQUISITION COSTS: |
Refer to table |
FHA MAXIMUM MORTGAGE AMOUNTS: |
refer to table |
MAXIMUM ASSETS: |
If assets exceed 20% of the purchase price, an Asset
Test Worksheet (Attachment F) must be completed to determine the
eligibility of the borrower |
TERM: |
30-year fixed rate |
MAXIMUM LOAN TO VALUE (LTV): |
103% maximum LTV |
|
|
MORTGAGE INSURER/GUARANTOR: |
FHA, VA or RHS
|
MI COVERAGE: (conventional loans): |
35%, regardless of LTV |
ELIGIBLE BORROWER: |
-
Must be a first-time home buyer unless buying a home in a targeted area; refer to Targeted Areas" section (click here to determine the census tract code of a property)
-
Must occupy the property as their principal residence; non-occupant co-borrowers are not permitted
-
total annual household income may not exceed Income Limit
|
ELIGIBLE PROPERTY: |
-
Purchase price (+ capitalized ground rent2, if applicable) may not exceed the Maximum Acquisition Cost
-
Existing homes; new construction (if in a Priority Funding Area3
)
-
must be a single-family, one-unit residence, including townhouses; detached or semi-detached homes; condominium units; and modular or manufactured homes with the State seal of approval for code compliance (manufactured homes must meet requirements in Lender's Manual for MMP)
-
If urban or suburban
, the lot size may not exceed the greater of 1 acre or the jurisdictional
minimum
-
If rural
, the lot size may not exceed the greater of 3 acres or the jurisdictional
minimum
-
Remaining economic life of the property must be equal to or greater than the
term of the loan
-
Investment property not eligible
|
HOME INSPECTION: |
Required (unless home newly constructed or substantially rehabbed) |
HOME BUYER EDUCATION:
|
Mandatory for ALL borrowers |
CLOSING COST AND DOWNPAYMENT ASSISTANCE:
|
DSELP loan NOT permitted |
MAXIMUM DEBT TO INCOME RATIO:
|
For all [this includes government (FHA, VA and RHS) and uninsured conventional loans (80% or less LTV)] manually underwritten loans: 36% with exceptions up to 45% with strong compensating factors per Fannie Mae guidelines for conventional loans or the applicable guidelines for an FHA , VA or RHS insured/guaranteed loan.
For all automated underwritten loans, the maximum is 45%.
|
MINIMUM CREDIT SCORE:
|
In order to be eligible for a Maryland Mortgage Program loan, the representative credit score must be 620 or above for a uninsured conventional loan or 580 or above for a government (FHA, VA and RHS) loan.
For manually underwritten FHA-insured loans only: if the borrower does not have a credit score, the loan will be eligible if the borrower has acceptable non-traditional credit as determined by current FHA underwriting guidelines.
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OTHER UNDERWRITING CRITERIA:
|
Refer to Lender's Manual MMP
|
SUBORDINATE LIEN:
|
-
Permitted if it complies with insurer/guarantor requirements;
- No shared lien or tacking/attaching secondary financing liens, conditions or riders to MMP Deed of Trust (must be an entirely separate second lien recorded after the MMP Deed of Trust);
- No deed covenants related to the secondary financing may be in Deed incorporating requirements of the secondary financing;
-
terms of repayment must be incorporated into the underwriting of the MMP loan.
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UNIQUE DOCUMENTATION:
|
The Closing Assistance Grant Agreement
(refer to Program Loan Documents) is required and must be signed by the
borrower(s).
|
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1 An unborn child can be treated as an "individual" when the birth of
the child will change the household size and result in an increase in the
applicable Income Limit. A Certification
of Pregnancy (Attachment T) must be completed and executed by the
pregnant borrower's physician.
2Capitalized ground rent, if applicable, is 200 times the monthly
ground rent.
3 A Priority Funding Area (PFA) is an older community or
locally-designated growth area where State and local governments already have a
significant financial investment in the existing infrastructure and want to
target their efforts to conserve natural resources and farmland while
encouraging and supporting sensible economic and residential growth.
Municipalities, Baltimore City and areas inside the Baltimore and Washington
beltways are PFA's.A full listing of PFA's is available at the Maryland Department of Housing and Community Development's website.
Revised 9/10/09
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