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.
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 (Updated January 2024).
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.