The Maryland Mortgage Program (MMP) is a home loan program that can open up the door to homeownership for many Marylanders who wouldn’t otherwise be able to afford to buy their first home.
This program, also referred to as the MD Bond program in the industry, offers a safe and secure loan from Maryland's Housing Finance Agency. The program has several important features including: down payment and closing cost assistance, competitive 30- year fixed-rate loans, and free/low cost homebuyer education.
MMP is running some specials here on the Eastern Shore: Worcester, Wicomico, and Somerset counties are all eligible to receive a .25 percent lower rate than the current published rates. Currently, that special rate is 3.875 percent (interest rates vary day by day). These loans must be reserved with the state of Maryland by Aug. 19.Veterans loans, or VA loans, are also are getting a .25 percent lower rate with MMP. There are criteria such as household income that will affect eligibility for these loans.
If your household size is one to two people, you may make up to $88,400 annually; if your household size is three or more, you may make up to $101,300 annually to qualify. There are some exceptions based on where you are looking to purchase, and interested buyers may visit the state's website at mmp.maryland.gov. Purchasers must also intend to live in the home, not have owned a home in previous three years, and complete a Homebuyer Education Course.
MMP also has the Maryland Mortgage Credit for a fee to the buyer/seller that gives a credit on their taxes. This is a true credit on the tax bill when filing taxes and it is based on the interest paid on the mortgage. There is also a product called the Down Payment Assistance soft second, which offers up to $5,000. Down Payment Assistance may be used for things like down payment, closing costs, prepaid/escrow expenses and a home inspection performed by a qualified home inspector, and may be available in the form of zero-interest deferred loans, forgivable loans, or outright cash grants.
Lauren Bunting is a licensed realtor with Bunting Realty, Inc. serving Worcester and Wicomico counties.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
