About

PURPOSE: To assist homebuyers with financing for settlement/downpayment costs.

SCOPE: Loans are available through Howard County's Department of Housing & Community Development (DHCD) for settlement and downpayment costs. All loans will be deferred, due upon sale of home, refinance, or default. Low interest rates at 2 points below the primary mortgage interest rate. Lenders will process all requests.

Settlement Downpayment Loan Program

ELIGIBILITY: Applicants must meet the following:

  • Income limits: See income chart located in the information packet below – page 4 (income limits subject to change every January and July).
  • House price limit - CDA purchase price limit for Howard County applies.  Please see SDLP information packet below for current limit.
  • First-time homebuyer for HomeStarter, HomeSteader, and DreamMaker Loans. First-time homebuyer restriction not required for Revitalization and Workforce Initiative Loans.
  • Have a minimum of $1,000 to apply towards settlement/downpayment costs plus one month PITI (mortgage payment) in savings account.
  • Lack sufficient funds to pay for the total settlement/downpayment costs.
  • Must be approved for a fixed rate primary mortgage loan.

HOW TO APPLY:

  • Complete an application with an approved lender.
  • Once the loan is approved with your lender, the lender will reserve funds directly with DHCD.
  • The lender will send all the required documents, including the application, to DHCD 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 DHCD.
  • If you're a soon-to-be homebuyer or a lender who'd like to know more, see our SDLP Information Packet (revised June 2022).

You may also contact Linda Phillips, SDLP Administrator with the Department of Housing & Community Development at 410-313-6318, option 1, or [email protected].

All homebuyers participating in the Settlement/Downpayment Loan Program are required to participate in pre-purchase counseling. Certificates are issued to the homebuyer in order to settle on the home purchase.

Funds are currently available and are offered on a first-come, first-serve basis. Interested homebuyers should contact a participating first mortgage lender to begin the application process.

Availability of funds is limited.

Stay Connected!

Sign up for the County Executive's weekly newsletter and stay up to date on everything Howard County.
 

Zip Code