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Mortgage Program
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This program provides borrowers with a 30-year fully amortizing loan. The
interest rate is FIXED for the entire 30 years.
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INTEREST RATE: |
Fixed interest rate for the entire term; refer to Current Interest
Rates on website
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ORIGINATION/DISCOUNT FEES: |
Vary, depending on interest rate; refer to
Current Interest Rates on website |
INCOME LIMITS1: |
Refer to table |
MAXIMUM ACQUISITION COSTS: |
Refer to table |
FHA MAXIMUM MORTGAGE AMOUNTS :
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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 amortizing mortgage |
MAXIMUM LOAN TO VALUE(LTV): |
103% Maximum LTV |
MAXIMUM DEBT TO INCOME (DTI) RATIO: |
For all [this includes government (FHA, VA and RHS) and conventional loans] 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%. |
MINIMIMUM CREDIT SCORE |
In order to be eligible for a Maryland Mortgage Program loan, the representative credit score must be 620 or above for an uninsured conventional loan or 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. |
OTHER UNDERWRITING CRITERIA: |
Refer to Lender's Manual MMP |
MORTGAGE INSURER/GUARANTOR: |
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| ELIGIBLE BORROWER: |
- Must be a first-time home buyer unless buying a home in a targeted area ;
refer to "Targeted Areas" section that follows (to determine the census tract
code of a property, use www.ffiec.gov/geocode/default.htm)
- Must occupy the property as their principal residence; non-occupant
co-borrowers are not permitted
- Total annual household income may not exceed Income Limit
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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)
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If urban or suburban
, the lot size may not exceed the greater of 1 acre or the jurisdictional
minimum
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If rural
, the lot size may not exceed the greater of 3 acres or the jurisdictional
minimum
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Remaining economic life of the property must be equal to or greater than the
term of the loan
- Investment property not eligible
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HOME INSPECTION: |
Required (unless home newly constructed or substantially rehabbed) |
HOME BUYER EDUCATION4:
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Mandatory for all borrowers |
CLOSING COST AND DOWNPAYMENT ASSISTANCE:
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Refer to "Downpayment Assistance" information
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SUBORDINATE LIEN:
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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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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
www.MMProgram.org.
4 If the borrower is also applying for a Downpayment and Settlement
Expense Loan Program (DSELP) loan, the homebuyer education requirement must be
completed and the Homebuyer Counseling Certificate received prior to the
borrower executing a contract of sale in
Baltimore. In addition,
borrowers may be required to have classroom and/or one-on-one counseling in the
county in which they plan to purchase a home.
Revised 06/24/10
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For More Information, Contact:
Single Family Housing
Community Development Administration
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032-2023
SingleFamilyHousing@dhcd.state.md.us
410-514-7530
Toll Free (Maryland Only): 800-638-7781
Fax: 410-987-4136
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Contact CDA Lender to
apply
Questions: 1-800-638-7781
www.MMProgram.org
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