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.

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

Down Payment & Closing Cost Assistance - City of Hagerstown is forgiven after 5 years, so a homebuyer 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.

Down Payment & Closing Cost Assistance - City of Hagerstown is open to homebuyers who will live in the home as their primary residence. On credit, the program states: Underwriting follows the buyer's first-mortgage product. A homebuyer education course is required, through Hagerstown Home Store - HUD-approved housing counseling; 8-hour homebuyer-education certificate required. Residency requirement: Property within the City of Hagerstown; buyer's primary residence. Citizenship or immigration status: U.S. citizen or eligible non-citizen permitted by HUD HOME / CDBG rules. Property must be located in the City of Hagerstown and be the buyer's primary residence. First-time homebuyer required. Household income approximately $50,900 (1-person) to $96,000 (8-person), tracking 80% HUD AMI for Hagerstown-Martinsburg MSA. 8-hour HUD-approved homebuyer-education class required (offered by Hagerstown Home Store). Loan forgivable over a 5-year owner-occupancy period.

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.

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.

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

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