Settlement Down Payment Loan


Howard County’s Department of Housing and Community Development is announcing that the funding for the FY18 Settlement/Downpayment Loan Program (SDLP) is nearing depletion.  At this time, the Department will only be able to fund loans with a closing date on or before March 31, 2018.  Lenders are required to submit complete loan packages by March 15, 2018.

Housing Director Kelly Cimino states “While we are surprised at how quickly the funds were used, we are also very excited that the program has been able to assist approximately 53 families purchase a home here in Howard County.One of the biggest hurdles in purchasing a home is saving for the downpayment and associated closing costs. The SDLP program has been able to assist in that aspect.”

  • Funding will be available in the new fiscal year which starts July 1, 2018.


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

SCOPE: Loans are available through Howard County Housing 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: $429,620 (CDA purchase price limit for Howard County applies).
  • 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.


  • Complete an application with an approved lender.
  • 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 Howard County Housing.
  • If you're a soon-to-be homebuyer or a lender who'd like to know more, see our SDLP Information Packet.
You may also contact Linda Phillips, SDLP Administrator with the Department of Housing & Community Development at 410-313-6318, option 4, or
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.