Closing Cost Assistance

Down Payment & Closing Costs Assistance

AMERICAN DREAM DOWNPAYMENT INITIATIVE (ADDI)

Maximum assistance: $5,000 per family in closing cost & down-payment assistance.

In Baltimore City, ADDI will be in the form of a forgivable loan with a five-year term. The loan will reduce by 20% a year as long as the family continues to use the house as their principal residence. If the property is sold or rented during the first five years, a portion of the funds must be paid. Eligible families are first-time homebuyers with family incomes 80% or below the area median.
ADDI IS OUT OF FUNDS

DOWNPAYMENT & SETTLEMENT EXPENSE LOAN PROGRAM (DSELP)

DSELP, a program of the State of Maryland, is a loan that covers settlement expenses above a borrower’s minimum equity capital contribution on a first mortgage loan that is the maximum mortgage amount permitted by the mortgage loan guarantor.

Up to $3,000 with a 0% interest rate
Repayment of DSELP is deferred and is due upon the earlier of maturity or prepayment of the first mortgage, or sale or transfer of the property.
Home purchase must be primary residence in Baltimore City
Income Limits: 1 or 2 persons in home $84,840, 3 or more $98,980

Maximum Acquisition Costs: Existing House $247,014; New Construction $261,609

Buyer must contribute at least 1% towards purchase

To qualify for a DSELP loan, applicants must be using a CDA Mortgage Loan Program first mortgage

CITY EMPLOYEE HOMEOWNERSHIP PROGRAM

$3,000 forgivable loan for use towards closing costs and/or down payment for purchase of property in eligible areas of Baltimore City. Applicant must occupy the property being purchased as your principal residence: single family homes, one to two dwelling unit properties or condominiums are eligible.
A loan (with no payments required) is provided with a 5 year term, reducing 20% for each year of occupancy.
At the conclusion of 5 years, the “loan” will have been fully forgiven.

Employee Eligibility Requirements:
Upon receipt of application from employee, funds will be reserved for 60 days.
Employees must attend a homeownership counseling program to participate.
Employees must produce a contract of sale and make mortgage application
within the 60 day period.

Funds are offered on a first come, first served basis until all funds are committed.

Employees must invest $1,000 from personal funds towards purchase. Only full time employees are eligible who have six months service.

For more information, or to schedule counseling, please contact us at:
410/523-1350