MMP Flex 3% Loan

MMP Flex 3% Loan is a deferred second loan for homebuyers in Statewide, Maryland. Maryland DHCD MMP Flex 3% - non-bond TBA-funded MMP first with 3% deferred 0% DPA second. NO FTHB requirement (repeat buyers OK). NO recapture tax (non-MRB). 640 FICO. Statewide. Maryland DHCD's MMP Flex 3% Loan is a non-bond, TBA-funded MMP product providing a 0% deferred second mortgage equal to 3% of the first mortgage amount for down payment and/or closing cost assistance. Pairs with a 30-year fixed-rate MMP first mortgage (FHA, VA, USDA-RD, or HFA conventional) sold into the To-Be-Announced (TBA) MBS market. Because Flex is NOT bond-funded, there is NO IRS Section 143 federal recapture tax, and the FIRST-TIME-HOMEBUYER REQUIREMENT IS WAIVED - repeat homebuyers eligible. The 3% DPA second is a non-amortizing 0% soft second - no monthly payment - due on sale/refinance/transfer/payoff. Income up to $229,460 (3+ person targeted/high-cost). 640 FICO, 45% DTI. Homebuyer education required. Funding comes from State and TBA.

MMP Flex 3% Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. 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. No forgiveness schedule. 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.

MMP Flex 3% Loan is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 640 minimum FICO. 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. FTHB requirement WAIVED (Flex is non-bond TBA - no MRB FTHB rule). Owner-occupied primary residence. 640 FICO minimum, 45% max DTI. MMP income / purchase-price limits ($131,700 1-2 person non-targeted to $229,460 3+ person targeted / high-cost; $544,233 to $1,535,015 purchase price). Homebuyer education required. MMP-approved lender + master servicer.

MMP Flex 3% Loan limits household income to $229,460. 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.

MMP Flex 3% 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.

MMP Flex 3% 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.

MMP Flex 3% Loan serves homebuyers purchasing in Statewide, Maryland. The program targets specific areas: High-cost Montgomery / PG / Calvert / Charles / Frederick counties have elevated income / purchase-price limits.

Applications for MMP Flex 3% 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. Daily TBA-execution rate sheet posted at mmp.maryland.gov/Lenders/Pages/Rates.aspx. 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.