Bootcamp For Buyers

Maryland Down Payment Assistance (DPA) Program

The Maryland Down Payment Assistance (DPA) Program, offered by the Maryland Department of Housing and Community Development (DHCD), helps eligible homebuyers reduce the upfront costs of purchasing a home. By providing financial assistance for down payment and closing costs, the program ensures that more residents can achieve the dream of homeownership.

Benefits

  • Provides up to $10,000 in assistance to cover down payments and closing costs.
  • Assistance is available as a grant or a deferred, forgivable loan, depending on the program’s terms and the buyer’s eligibility.
  • Works alongside the Maryland Mortgage Program (MMP) for comprehensive homebuyer support.
  • Supports first-time homebuyers and eligible repeat buyers, making it inclusive for a range of buyers.
  • Helps reduce upfront expenses, making homeownership more accessible for low- and moderate-income families.

Eligibility Requirements

  • Applicants must qualify for a Maryland Mortgage Program (MMP) first mortgage to access down payment assistance funds.
  • Income limits apply and vary by household size and the property’s location within Maryland.
  • The property must be located in Maryland and used as the buyer’s primary residence.
  • A minimum credit score of 640 is generally required, with lender-specific underwriting criteria also applicable.
  • Completion of a homebuyer education course approved by the DHCD is mandatory to prepare for homeownership responsibilities.

Additional Information

The Maryland Down Payment Assistance (DPA) Program is a critical resource for residents seeking to overcome financial barriers to homeownership. By providing targeted support for upfront costs, the program empowers eligible buyers to achieve stability and invest in their future. Administered by the Maryland Department of Housing and Community Development, the program fosters sustainable housing solutions and strengthens communities across Maryland.

Frequently Asked Questions About Our Program

What is the Maryland Down Payment Assistance (DPA) Program?

The Maryland Down Payment Assistance (DPA) Program provides financial support to help homebuyers cover down payment and closing costs, making homeownership more accessible and affordable.

Who qualifies for the Maryland DPA Program?

The program is open to first-time homebuyers and repeat buyers in targeted areas who meet income, credit, and property eligibility requirements.

How much assistance does the DPA Program provide?

The program typically offers up to $10,000 in assistance, which can be used to cover down payment or closing costs, reducing upfront expenses for buyers.

Is the assistance provided by the DPA Program a loan or a grant?

The assistance is offered as a deferred loan, which may be forgivable after a specific period if certain conditions, such as living in the home, are met.

What is the minimum credit score required for the DPA Program?

A minimum credit score of 640 is generally required, though additional factors like debt-to-income ratio and income may also be considered.

Are there income limits for the Maryland DPA Program?

Yes, income limits apply and are determined based on household size and the location of the property. These limits are reviewed annually to align with market conditions.

Can the DPA Program be combined with other homebuyer assistance programs?

Yes, the DPA Program can often be combined with other Maryland Mortgage Program benefits or local assistance programs to maximize financial support.

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Is homebuyer education required for the DPA Program?

Yes, completing a homebuyer education course is required to ensure buyers are financially prepared for homeownership.

What types of properties are eligible for the Maryland DPA Program?

Eligible properties include single-family homes, condominiums, and townhouses. Certain manufactured homes may also qualify if they meet program guidelines.

What is the maximum purchase price allowed under the DPA Program?

The maximum purchase price generally ranges between $450,000 and $500,000, depending on the property's location and program-specific criteria.

Are there reserve requirements for the Maryland DPA Program?

No specific reserve requirements are mandated, but lenders may consider reserves when reviewing the loan application.

Can the assistance be used for newly built homes?

Yes, newly constructed homes are eligible, provided they meet program requirements and are used as the buyer's primary residence.

Are there debt-to-income (DTI) ratio limits for the program?

Yes, the program typically requires a maximum DTI ratio of 45%, though exceptions may apply based on other qualifying factors like credit history.

Are there location restrictions for the DPA Program?

The property must be located in Maryland, and specific guidelines apply based on whether the property is in a targeted or non-targeted area.

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What fees are associated with the Maryland DPA Program?

Standard fees such as origination, processing, and appraisal fees may apply. Borrowers should discuss these costs with their lender for clarity.

Can the Maryland DPA Program be used for refinancing an existing home?

No, the program is designed exclusively for purchasing a primary residence and does not apply to refinancing.

What happens if I sell or move before meeting the forgiveness conditions?

If you sell or move before fulfilling the program's conditions, you may be required to repay some or all of the assistance provided.

What are the benefits of the Maryland DPA Program?

The program helps reduce upfront costs by covering down payment and closing expenses, making homeownership more achievable for eligible buyers.

Is there a first-time homebuyer requirement for the DPA Program?

Yes, the program is primarily for first-time homebuyers, although exceptions are made for properties in targeted areas or for certain professions.

What is the process for applying to the Maryland DPA Program?

Applicants must meet program requirements and work with an approved lender who will guide them through the application and approval process.

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