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SDLP - SETTLEMENT DOWN PAYMENT LOAN PROGRAM

The purpose of the program is to assist first time homebuyers with financing for settlement/downpayment costs up to $6,000.

Loans are available through the Howard County Department of Housing and Community Development (HCD) for settlement and downpayment costs. The loans will be amortized for at least 15 years at below market interest rates.

Participating lenders with available funds will process all requests.

Applicants must meet the following:

• Income limit: $46,500 for individuals; $59,100 for 2 or more persons households (income limits subject to change every January and July).
• Purchase price limit: $143,900 for individuals; $183,100 for 2 or more person households.
• First time homebuyer.
• Have a minimum of $1,000 to apply towards settlement/downpayment costs plus one month’s mortgage payment (including principal, interest, taxes & insurance) in savings account.
• Lack of sufficient funds to pay for the total settlement/downpayment costs.
• Must be approved for a primary mortgage loan.

How To Apply:

• Complete an application with a participating lender (link to page).
• Once the loan is approved with your lender, the lender will reserve funds directly with HCD.
• The lender will send all the required documents, including the application, to HCD for processing funds.
• Funding reservations are made only by the lender once all the necessary documents, including the primary mortgage loan approval letter, have been submitted to HCD.