Closing Cost and Downpayment Grants

What is Closing Cost and Downpayment Grants?

Closing Cost and Downpayment Grants is a forgivable loan for homebuyers in Salisbury, Maryland.

• Salisbury NHS true grant for closing costs / down payment - 80% AMI cap, FTHB typical, Wicomico/Worcester/Somerset. Funding sourced from state DHCD, NeighborWorks, FHLB Atlanta AHP. Amount varies by cycle.
• TRUE GRANT (no repayment) for closing-cost and down-payment assistance from Salisbury Neighborhood Housing Services. Funded through state DHCD, NeighborWorks America, FHLB Atlanta AHP, and other community-development sources channeled to SNHS. Income limited to 80% area median income (LendSquawk seed range: $52,500 1-person to $98,950 8-person, reflecting 80% AMI scaled by household size). Wicomico County primary service area.
• expanded to Worcester and Somerset counties under SNHS's NeighborWorks footprint. Owner-occupied primary residence. SNHS pre-purchase counseling required. Grant amount varies by funding source/cycle - typical grants $2,500-$10,000 (SNHS does not publish a fixed amount.
• depends on whether buyer also qualifies for FHLB Atlanta FHP or state grant funding pass-through).
• Funding comes from State, Federal, Foundation, NeighborWorks, and FHLB AHP.

Do you have to pay it back?

Closing Cost and Downpayment Grants is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by CDBG-funded assistance recorded as a 5-year forgivable lien against the property. Owner-occupancy required; prorated balance recoverable if owner-occupancy is broken within 5 years. $60 recording fee at settlement.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Closing Cost and Downpayment Grants is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Closing Cost and Downpayment Grants limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% area median income (HUD), by household size. Per LendSquawk seed: $52,500 (1-person) to $98,950 (8-person).
• 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.

What kind of home can it be used for?

Closing Cost and Downpayment Grants caps the purchase price as follows: Per first-mortgage limits and grant-source-specific guidelines.

• Eligible property types include Single-family detached, Townhome, Rowhouse, and Condominium.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Closing Cost and Downpayment Grants serves buyers purchasing in Salisbury, Maryland.

• The program targets specific areas: Salisbury NHS service area: Wicomico County (primary), Worcester County, Somerset County (Eastern Shore Maryland).

How do you apply?

Applications for Closing Cost and Downpayment Grants go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Salisbury Neighborhood Housing Services (HUD-approved housing counseling agency) - pre-purchase counseling required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply directly through SNHS. Funds reserved by cycle; first-come, first-served while available., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.