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Down Payment and Closing Cost Assistance
My HOME Program
The My HOME program offers $$$ incentives to buy a home in Prince George's County. Up to 5% of home sale price to qualified homebuyers who have not owned a home within last 3 years.
Through HUD's HOME Investment Partnerships Program (HOME) the County has acquired over $1 million to use toward Down Payment and Closing Cost Assistance loans. The County's Department of Housing and Community Development (DHCD) oversees the My HOME program, which has been accepting applications and granting assistance to Prince George's County homebuyers since March 7, 2011.
My HOME Details:
- The purchase property DOES NOT HAVE TO BE A FORECLOSED PROPERTY. The MY HOME program is open to all residential sale properties in Prince George's County up to $362,790. . . including short sales (single family, townhome, condominium, new construction included. The buyer must occupy.)
- Down Payment Assistance (DPA) is NOT restricted to specific zip codes. Under My HOME all areas of Prince George's are eligible.
- Applicant must be a first time home buyer, defined as "not owning a home within last three years."
- The amount of down payment assistance (DPA) is 5% of the property sale price.
- Buyer must contribute 1.75% of sale price toward transaction or 50% of liquid assets over $3,000 which ever is greater.
- The maximum household income limits for eligibility were increased on October 16, 2011. Income Limits Chart >
- Calculate your annual household income using this sample chart.
- Buyer must qualify for the first mortgage through a Participating Lender approved by DHCD.
- The lender will accept and complete the DPA loan applications and underwrite and qualify the first mortgage and pre-qualify the DPA loan simultaneously.
- DHCD will require a specific DPA application, a special contract addendum, and seller/borrower affidavits.
- Prospective purchase property will be subject to special inspections performed by a DHCD qualified inspector (at no cost to buyer).
- A Streamline 203K is acceptable, limited to repairs up to $35,000.
- The DPA will be in the form of a deferred payment loan secured on the property as a second trust. Repayment is required if ownership is less than 10 years.
- Applicants must attend 8 hours of HUD approved financial counseling classes.
At this point there is just over $1 million dedicated to down payment and closing cost assistance through this program. It is estimated that this may translate into over 100 loans. Prepare yourself for this opportunity, visit the new County website at www.princegeorgescountymd.gov/MyHome.
