Q. What is the Community Partner Incentive Program?
A. The Community Partner Incentive Program enables eligible homebuyers to receive more downpayment and/or closing cost assistance than is available through the standard downpayment and closing cost assistance programs.
Q. Who qualifies for the Community Partner Incentive Program?
A. Any borrower who receives a contribution for downpayment and/or closing cost assistance from a participating Community Partner and meets the eligibility criteria under the Maryland Mortgage Program (MMP) may participate in the Community Partner Incentive Program.
Q. How does it work?
A. DHCD will match contributions dollar-for-dollar, up to $5, 000, toward downpayment and closing costs from participating Community Partners. The Community Partner’s contribution may be combined with assistance from local jurisdictions, unions and/or nonprofit agencies; however, the Community Partner Incentive Program match will not exceed $5, 000. The match is in the form of a 0% deferred loan that is repayable at the time of payoff or refinance, or upon the sale or transfer of the house. This assistance is over and above what is available through the standard downpayment and closing cost assistance programs, allowing some borrowers to have more choices in buying a home.
Q. What are the standard downpayment and closing cost assistance programs offered by DHCD?
A. There are three types of closing cost assistance available:
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DSELP a deferred loan at 0%
- MMP+ 2% – a grant equal to 2% of the loan amount. The grant is not repayable.
- MMP+ 3% -- a grant equal to 3% of the loan amount. The grant is not repayable.
Q. May I apply for assistance from all of the standard downpayment and closing cost assistance programs?
A. You may select either the DSELP loan or a grant through the MMP+ 2% or MMP+ 3% Program .
If you elect to use the MMP+ 2% or MMP+ 3% Program, you will pay a slightly higher interest rate and,
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if your loan is insured by FHA, MMP+ 2% or MMP+ 3% may be used to fund closing costs only.
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if your loan is insured by a private mortgage insurance company or guaranteed by VA or RHS, MMP+ 2% or MMP+ 3% may be used to fund both downpayment and closing costs as permitted by the insurer/guarantor.
Q. Who is eligible for DSELP, MMP+ 2% or MMP+ 3%?
A. Individuals or families who are approved to purchase a home using a loan through the Maryland Mortgage Program can apply for assistance.
Q. How does the Community Partner Incentive Program help when I am purchasing a home?
A.
- Borrowers who are eligible for a DSELP loan through the Maryland Mortgage Program, can receive up to an additional $5,000 from the Community Partner Incentive Program (based on dollar-for-dollar matching contributions) to add to the amount available under the regular DSELP Program.
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Borrowers who select an MMP+ 2% or MMP+ 3% grant through the Maryland Mortgage Program, can receive up to an additional $5, 000 from the Community Partner Incentive Program (based on dollar-for-dollar matching contributions) to add to the 2% or 3% closing cost assistance grant.
Example 1: Community Partner contribution = $5,000
DSELP loan |
$3,500 |
| Community Partner contribution
|
5,000 |
Community Partner Incentive Program dollar-for-dollar match |
5,000
|
Total closing cost assistance |
$13,500 |
Example 2: Community Partner contribution = $5,000
MMP+ 2% grant (based on $250,000 loan amount) |
$5,000 |
Community Partner contribution |
5,000 |
Community Partner Incentive Program dollar-for-dollar match |
5,000 |
Total closing cost assistance |
$15,000 |
Example 3: Community Partner contribution = $5,000
MMP+ 3% grant (based on $250,000 loan amount) |
$7,500 |
Community Partner contribution |
5,000 |
Community Partner Incentive Program dollar-for-dollar match |
5,000 |
Total closing cost assistance |
$17,500 |
Q. My local government offers a program that makes assistance available if I move within a certain distance of my place of employment. Can I use the Community Partner Incentive Program in conjunction with the local government's program?
A. Yes. The local government’s assistance can be combined with the Community Partner’s contribution; however, the amount of the dollar-for-dollar match provided through the Community Partner Incentive Program will not exceed $5,000.
Example
| DSELP |
$3,500 |
Community Partner contribution |
1,000 |
Local government contribution |
1,000 |
Community Partner Incentive Program dollar-for-dollar match |
2,000
(matches Community Partner/jurisdiction funds) |
Total closing cost assistance |
$7,500 |
Q. Who are the participating Community Partners?
A. The Maryland Department of Housing and Community Development maintains a list of Community Partners who are concerned about affordable housing and have agreed to participate in the program.
Q. How do I get started?
A. Contact a Community Partner to get information on their eligibility criteria and how much assistance may be available to you.
Q. What do I do after I find out what is available through my Community Partner?
A.
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Complete homebuyer section of the Verification of Partner Contribution form and give it to your Community Partner to complete the appropriate section. Your Community Partner may be able to help you determine if additional contributions are available from local jurisdictions, unions, and/or nonprofit organizations.
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Select a participating CDA lender and make an appointment to pre-qualify for a CDA mortgage loan.
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Provide the lender with the original of the fully completed and executed Verification of Partner Contribution form.
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Talk to your lender about homebuyer education before signing a contract of sale. Please note that in the City of Baltimore and Anne Arundel, Baltimore, and Harford County, you must meet certain homebuyer education/housing counseling requirements. Refer to the Counseling information on our website.
Q. Where can I get additional information?
A. You may call toll-free 1-800-638-7781 or visit our website at www.mmprogram.org
Please note: If borrower is requesting assistance through the Downpayment and Settlement Expense Loan Program (DSELP) and/or the Community Partner Incentive Program (CPIP) on a property located in the City of Baltimore or Anne Arundel, Baltimore, or Harford County, the borrower must meet the applicable requirements. Refer to the Counseling information on our website.