Homestart 6% DPA Loan

Homestart 6% DPA Loan is a forgivable loan for homebuyers in Statewide, Maryland. Maryland DHCD MMP Homestart - 6% deferred 0% DPA second for low-income borrowers at or below 50% AMI ($44,950-$81,000). Bond-funded MRB first. FTHB required. 640 FICO. Statewide. Maryland DHCD's Homestart 6% DPA Loan is a low-income MMP product providing a 0% deferred SECOND mortgage equal to 6% of the first mortgage amount for down payment and/or closing cost assistance. Designed specifically for borrowers at or below 50% Area Median Income (AMI) - household income range $44,950 (low end) to $81,000 (statewide cap). Pairs with a 30-year fixed-rate MMP first mortgage funded via Maryland mortgage revenue bonds. The Homestart 6% second is structured as a 0% deferred no-payment soft second. per MMP Homestart fact sheet, the second is due on sale / refinance / transfer / payoff. Some DHCD Homestart documentation references a forgiveness component for owner-occupancy compliance (verify current forgiveness terms with DHCD lender bulletins). 640 FICO, 45% DTI. Homebuyer education required. Funding comes from State and Bond.

Homestart 6% DPA Loan is a forgivable loan, so the balance is forgiven once the program's conditions are met. Repayment is triggered by 0% deferred soft second. Full balance due on sale, refinance, transfer of title, payoff of first, or non-owner-occupancy. No monthly payment. Forgiveness terms - if any - per current DHCD Homestart bulletin (some documentation references forgiveness over a defined owner-occupancy period and verify with DHCD). The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Homestart 6% DPA Loan is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: FTHB waived in federally targeted tracts and for qualifying veterans (IRS Section 143(d)(2)(B)). On credit, the program states: 640 minimum FICO across all eligible first-mortgage products. A homebuyer education course is required, through MMP-approved homebuyer education provider network. Residency requirement: Property in MD; primary residence. Statewide. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien. LOW-INCOME ELIGIBILITY: Household income at or below 50% Area Median Income (AMI) - $44,950 low end to $81,000 statewide cap (3+ person high-cost county). FTHB required (waived in federally targeted tracts and for qualifying veterans). Owner-occupied primary residence. 640 FICO minimum, 45% max DTI. MMP purchase-price limits ($544,233 to $1,535,015). Homebuyer education required. MMP-approved lender + master servicer. Compliance review of household composition and income required at reservation.

Homestart 6% DPA Loan limits household income to 50% of the area median income, which varies by county and household size. Homestart low-income tier: $44,950 (1-person low end) to $81,000 (3+ person high-cost county cap). At or below 50% AMI per DHCD Homestart fact sheet. Verify county-specific limits on MMP limits page. 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.

Homestart 6% DPA Loan caps the purchase price at $1.5M. Eligible property types include Single-family detached, 2-unit owner-occupied (per overlays), condo (approved), townhouse, PUD. New construction is eligible. Manufactured homes are not eligible.

Homestart 6% DPA Loan names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Homestart 6% DPA Loan serves homebuyers purchasing in Statewide, Maryland. The program targets specific areas: Federally targeted census tracts and high-cost MD counties have elevated income / purchase-price limits within Homestart's low-income parameters.

Applications for Homestart 6% DPA Loan go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved through MMP Lender Online portal at rate lock; income compliance verified at reservation. 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.