Get Assistance: DSELP
Q: What is DSELP?
A: DSELP is the Downpayment and Settlement Expense Loan Program. This program helps eligible borrowers by funding a portion of their closing costs.
Q: Who is eligible for a DSELP?
A: Individuals or families who are approved to purchase a home using a CDA first mortgage loan can apply for a DSELP. Please note: If borrower is requesting a Downpayment and Settlement Expense Loan Program (DSELP) and/or assistance through a Partner Match Program
on a property located in the City of Baltimore or the county of Anne Arundel, Baltimore, or Harford, the borrower must meet the applicable requirements on the Homebuyer Workshops sheet.
Q: How much can I borrow with DSELP?
A: DSELP can provide up to $5,000.
Q: What is the interest rate on the DSELP loan?
A: DSELP is offered at a 0% interest rate.
Q: When must I pay back the DSELP?
A: DSELP is a deferred loan that is repayable when you payoff or refinance the home or upon sale or transfer of the house you financed through CDA.
Q: Can I cover all of my settlement expenses using DSELP?
A: Yes, there is no minimum borrower contribution.
Q: How do I get a DSELP?
A: When you apply to a participating lender for a CDA first mortgage loan to buy your home, ask the lender to qualify you for a DSELP.
Q: Can I use DSELP with a non-CDA first mortgage loan?
A: No. DSELP can only be used with a CDA first mortgage loan.
Q: Who insures or guarantees my first mortgage loan when I get a DSELP?
A: CDA first mortgage loans may be insured by FHA or guaranteed by VA or RHS (Rural Housing Service)
Q: Is my DSELP loan insured?
A: No. However, it does get recorded as a second lien against the home that is purchased.
Q: Is DSELP available only in certain areas?
A: No. DSELP is available statewide.
Q: Are there any other special requirements for DSELP?
A: Yes. Some counties require that borrowers take homebuyer education workshops and have a housing counseling certificate before the borrower signs a contract of sale. Ask your lender about homebuyer education requirements
or consult our website www.mmprogram.org