Down Payment & Closing Cost Assistance - City of Hagerstown

What is Down Payment & Closing Cost Assistance - City of Hagerstown?

Down Payment & Closing Cost Assistance - City of Hagerstown is a deferred second loan for homebuyers in Hagerstown, Maryland.

• The Hagerstown Home Store administers the City of Hagerstown's down-payment and closing-cost assistance program, providing up to $10,000 in forgivable second-mortgage assistance to income-qualified first-time homebuyers in Hagerstown. The Hagerstown Home Store is a HUD-approved housing counseling agency serving Washington County, MD. Funded through HUD HOME and CDBG pass-through allocations.
• Down-payment and closing-cost assistance of up to $10,000 as a 0% interest deferred-payment / forgivable second mortgage for income-qualified first-time homebuyers purchasing primary residences within the City of Hagerstown. Administered by the Hagerstown Home Store on behalf of the City.
• Funding comes from HOME, CDBG, Federal, and Local Government.

How much assistance does it provide?

Down Payment & Closing Cost Assistance - City of Hagerstown offers up to $7,500 in assistance.

• Buyer contribution: Per first-mortgage program.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Down Payment & Closing Cost Assistance - City of Hagerstown is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgivable over 5 years of owner-occupancy and due in full upon sale, refinance with cash-out, transfer, or loss of primary-residence status.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Down Payment & Closing Cost Assistance - City of Hagerstown is open to buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment & Closing Cost Assistance - City of Hagerstown limits household income to 80% of the area median income, which varies by county and household size.

• Household income limits set by HUD, approximately $52,500 (1-person) to $98,950 (8-person) for the City of Hagerstown program (per Home Store City Grant flyer).
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• 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?

Down Payment & Closing Cost Assistance - City of Hagerstown caps the purchase price as follows: Per HUD HOME 95% rule for Hagerstown area.

• Eligible property types include Single-family detached, Townhouse, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Down Payment & Closing Cost Assistance - City of Hagerstown serves buyers purchasing in Hagerstown, Maryland.

How do you apply?

Applications for Down Payment & Closing Cost Assistance - City of Hagerstown 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 Hagerstown Home Store - HUD-approved housing counseling; 8-hour homebuyer-education certificate required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served via Hagerstown Home Store; subject to annual HUD HOME / CDBG funding., 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.