Maryland SmartBuy Program Guide

Guide to the Maryland SmartBuy Program

The Maryland SmartBuy Program provides valuable assistance to individuals and families looking to purchase a home in Maryland. This program helps homebuyers reduce the upfront costs of purchasing a home, including down payments and closing costs, while also providing options for eligible participants to address student loan debt. The program has been updated for 2025 to make homeownership even more accessible. Here’s everything you need to know to get started with the Maryland SmartBuy Program.

1. Program Overview:

• Purpose: The Maryland SmartBuy Program is designed to assist first-time homebuyers and those with student loan debt by offering down payment and closing cost assistance, along with an opportunity to address student loan obligations as part of the home purchase process.
• Assistance Amount: Eligible homebuyers can receive up to $15,000 in assistance to cover down payments and closing costs. This assistance helps make homeownership more affordable by reducing the amount of money required at the time of purchase.
• Student Loan Debt Relief: In addition to down payment and closing cost assistance, the SmartBuy Program offers up to $40,000 in student loan debt relief, which is paid directly to the loan servicer. This unique feature helps borrowers eliminate or reduce their student loan obligations, making homeownership more financially feasible.

2. Eligibility Requirements for 2025:

To qualify for the Maryland SmartBuy Program, applicants must meet the following criteria:

• Income Limits: The program is available to moderate-income homebuyers. Income limits vary based on household size and the county in which you are purchasing the home. These limits are updated annually to reflect changes in the housing market and cost of living.
• Student Loan Debt: The program is specifically designed for individuals who have at least $1,000 in outstanding federal student loan debt. The SmartBuy Program offers assistance in paying down these loans as part of the home purchase process.
• Credit Score: A minimum credit score of 640 is required to qualify for the program. Lenders may consider additional factors, such as your debt-to-income ratio and credit history, when determining eligibility.
• Property Requirements: The property must be located in Maryland and serve as your primary residence. The home must also meet certain price limits based on its location to ensure affordability for eligible buyers.
• Homebuyer Education: All applicants must complete an approved homebuyer education course. The course covers important topics such as mortgage management, budgeting, and long-term homeownership responsibilities. A certificate of completion is required to move forward with your loan application.

3. How to Apply:

Applying for the Maryland SmartBuy Program is a straightforward process:

• Find a Participating Lender: The Maryland SmartBuy Program works through a network of approved lenders. You will need to contact one of these lenders to begin your application process. A participating lender will assist you in determining your eligibility, gathering necessary documents, and completing the application.
• Required Documentation: Be prepared to submit documents such as proof of income, tax returns, credit history, and a certificate from the homebuyer education course. In addition, you will need to provide documentation of your student loan debt.
• Submit Your Application: Once you have gathered all necessary documentation, submit your application to the participating lender. The lender will process your application and help you move forward with the next steps in the approval process.

4. Homebuyer Education Course:

• Mandatory Requirement: Completion of an approved homebuyer education course is required for all applicants. The course will provide you with the knowledge needed to understand the homebuying process, budget effectively, and manage your mortgage.
• Course Options: The course is available online and in-person, offering flexibility to fit your schedule. Upon completion, you will receive a certificate, which is necessary for moving forward with your loan application.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The Maryland SmartBuy Program provides up to $15,000 in down payment and closing cost assistance, which helps reduce the initial financial burden of purchasing a home.
• Deferred Loan Terms: The down payment assistance is provided as a second mortgage with deferred payments. No monthly payments are required, and the loan is only due when the home is sold, refinanced, or paid off. In some cases, the loan may be forgiven after a set period.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your lender will guide you through the process of signing loan documents and preparing for closing. They will ensure you understand all terms and conditions before you finalize the loan.
• Closing Costs: Although the program covers a portion of the closing costs, you may still be responsible for some fees. Your lender will provide you with a detailed breakdown of costs, including what is covered by the program.

Our dedicated team of loan officers will assist you throughout every step of the process, ensuring that you receive the maximum benefit from the Maryland SmartBuy Program. With their support, you can confidently navigate the homebuying process, reduce your student loan debt, and move closer to achieving homeownership in Maryland.