Hagerstown Homeownership Initiative

What is Hagerstown Homeownership Initiative?

Hagerstown Homeownership Initiative is a deferred second loan for homebuyers in Hagerstown, Maryland.

• The Hagerstown Homeownership Initiative is the City of Hagerstown's flagship homeownership-incentive program providing forgivable second-mortgage assistance to owner-occupant homebuyers in Hagerstown. Funds may be used for down payment, closing costs, and certain rehab expenses. Administered by the Department of Community and Economic Development.
• Forgivable second mortgage assistance for owner-occupant homebuyers in the City of Hagerstown. Funds support down-payment, closing-cost, and certain rehabilitation expenses.
• loan is forgiven over a 5-year owner-occupancy period.
• Funding comes from HOME, CDBG, Federal, and Local Government.

How much assistance does it provide?

Hagerstown Homeownership Initiative 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?

Hagerstown Homeownership Initiative 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 during the affordability period.
• 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?

Hagerstown Homeownership Initiative is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Hagerstown Homeownership Initiative sets its income limit as follows: Income limits per City of Hagerstown annual program guidelines (typically 80% AMI for the Hagerstown-Martinsburg MSA).

• 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?

Hagerstown Homeownership Initiative caps the purchase price as follows: Per City of Hagerstown annual program guidelines.

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

Where does it apply?

Hagerstown Homeownership Initiative serves buyers purchasing in Hagerstown, Maryland.

How do you apply?

Applications for Hagerstown Homeownership Initiative 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 HUD-approved housing counseling agencies serving Hagerstown / Washington County (including Hagerstown Home Store)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served subject to annual HUD HOME / CDBG / City 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.