CHAI Homebuyer Assistance Loan

CHAI Homebuyer Assistance Loan is a deferred second loan for homebuyers in Baltimore, Maryland, administered by Comprehensive Housing Assistance, Inc. (CHAI). CHAI's Homebuyer Assistance Loan offers eligible first-time homebuyers up to $10,000 toward closing costs and buyers' fees in northwest Baltimore City. It is a zero-interest, 10-year deferred second mortgage with no payments for the first 5 years; at the start of the 6th year the loan re-amortizes and the borrower makes equal monthly payments for the remainder of the term. The loan is secured by a Deed of Trust, requires the property remain the primary residence, and may be combined with other assistance programs. Up to $10,000 for closing costs/buyers' fees. Zero interest throughout. No payments for first 5 years. Affordable equal monthly payments years 6-10. Funds available at closing. Combinable with other programs.

CHAI Homebuyer Assistance Loan offers up to $10,000 in assistance. The program can be combined with Other assistance programs. Amounts are the program's published maximums, not an offer — Comprehensive Housing Assistance, Inc. (CHAI) determines any individual award.

CHAI Homebuyer Assistance Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by 10-year term, 0% interest: no payments for first 5 years; loan re-amortizes at start of 6th year with equal monthly payments for the remaining term. Repayable if borrower refinances for cash-out or takes a HELOC during the term, or if the property ceases to be the primary residence. The assistance is recorded in Second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

CHAI Homebuyer Assistance Loan is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Must not have owned a principal residence in the past three years. On credit, the program states: 640 for at least one borrower. A homebuyer education course is required, through Homebuyer education workshop plus one-on-one counseling with a HUD-approved housing counselor (prior to sales contract). [Unparsed numeric values moved to notes: max_liquid_assets: 20% of purchase price (excluding retirement accounts)] Funds cannot be used to meet the borrower's equity requirement; maximum down payment of 10%; borrower must maintain homeowners insurance listing CHAI as additional mortgagee; refinance cash-out or HELOC during term triggers payoff; apply through a licensed lender via CHAI's secure lender portal.

CHAI Homebuyer Assistance Loan limits household income to 100% of the area median income, which varies by county and household size. Total household income at or below 100% AMI based on household size; includes all income from individuals aged 18 or over. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

CHAI Homebuyer Assistance Loan caps the purchase price at $499,650. Eligible property types include Single Family, Townhouse, and Condo. New construction is not eligible.

CHAI Homebuyer Assistance Loan serves homebuyers purchasing in Baltimore, Maryland. The program targets specific areas: Homes in the 21215 zip code including Cheswolde, Cross Country, Fallstaff, Glen, and Mount Washington.

Applications for CHAI Homebuyer Assistance Loan go through Comprehensive Housing Assistance, Inc. (CHAI), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.