Lenders must be Fannie Mae/Freddie Mac approved seller/servicers and complete an application to be a participating lender. After CDA reviews and approves the required application and supporting documentation, the lender receives an initial training and is given access to the Lender On-Line internet reservation system. An application may be obtained from Barbara Schmitt in Single Family Housing. Her phone number is 410-514-7512 and her e-mail address is schmitt@mdhousing.org

CDA receives authority through the IRS to issue tax-exempt mortgage revenue bonds to fund mortgages under the CDA Maryland Mortgage Program. It is a requirement of the federal government that this documentation be used in order to establish the borrower's eligibility under the IRS rules.

Uninsured conventional (80% or less LTV) and loans insured or guaranteed through the following are eligible:

• Government insurers/guarantors (FHA, VA or Rural Housing Service (RHS)

The loan must be made to an income eligible borrower to purchase a home in which they will reside and whose purchase price is within the limits for the program.

Reservations are entered by the lender through Lender On-Line (LOL), an internet-based reservation system. Once an eligible reservation is entered, the lender receives an immediate confirmation. LOL is available 24/7 and provides up-to-the-minute status on loans from reservation to submission of final documents.

Go to www.ffiec.gov and enter a street address to obtain a census tract number.

Yes. The debt-to-income ratios may not exceed:

• 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%.

The underwriting standards for CDA loans are the standards of the applicable government insurer /guarantor credit score must be 620 or above for an uninsured conventional loan or for a government loan (FHA, VA or RHS).

Targeted areas are federally designated areas that are considered distressed or areas in which 70% or more of the families have an income which is 80% or less of the statewide median family income. In targeted areas, purchasers using the CDA Maryland Mortgage Program do not have to be first time homebuyers. Priority Funding Areas (PFAs) are areas designated by jurisdictions in conjunction with the State as areas in which growth should occur. Purchasers using the CDA Maryland Mortgage Program may buy existing homes anywhere in the State, but new construction must be in Priority Funding Areas.

The processing time on a CDA loan should be no different than other loans processed by the lender. CDA does require a review of the file for compliance with federal requirements prior to settlement. Turnaround time for these reviews is based on volume, with a goal of 48 hours.

CDA funds are available continuously.

Yes. There are several options available for downpayment and closing cost assistance:

• Downpayment and Settlement Expense Loan Program (DSELP)
  
• Partner Match Programs

In addition, many downpayment assistance programs that are available locally can be used with the CDA Maryland Mortgage Program loan.

The lender may earn a maximum fee of 2.00% of the loan amount if the loan is submitted and approved for purchase within 60 days of the reservation for existing homes, or within 120 days of reservation for new construction. Loans submitted after this timeframe will be paid less. The minimum fee is 0%.

Revised 2/19/10

For More Information about Maryland Mortgage Program, contact CDA today!