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SDLP - HomeStarter Loan

Howard County, Maryland

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Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$644,756

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is SDLP - HomeStarter Loan?

SDLP - HomeStarter Loan is a deferred second loan for homebuyers in Howard County, Maryland.

  • The HomeStarter Loan is the low/moderate-income tier (80% AMI) of Howard County's Settlement Downpayment Loan Program (SDLP). Provides up to $30,000 in 0% interest deferred-payment second-mortgage assistance to first-time homebuyers in Howard County. Administered by Howard County DCS / DHCD.
  • HomeStarter tier of Howard County's SDLP. Up to $30,000 in 0% interest deferred-payment second-mortgage assistance for low/moderate-income first-time homebuyers (80% AMI) purchasing in Howard County. Maximum purchase price $644,756.
  • Funding comes from HOME, CDBG, Federal, and Local Government.

Do you have to pay it back?

SDLP - HomeStarter 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 Deferred 0% second-mortgage repayable 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?

SDLP - HomeStarter Loan is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer (no ownership of residential real estate in prior 3 years).
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO; underwriting per first-mortgage product
  • A completed homebuyer education course, through HUD-approved housing counseling agencies; 8-hour homebuyer-education certificate required.
  • Residency: Property within Howard County, MD; buyer's primary residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen permitted by HUD HOME / CDBG rules
  • Property in Howard County; buyer's primary residence. HomeStarter tier targets households at or below 80% AMI. Maximum household income approximately $66,300 (1-person) to $124,950 (8-person). Maximum purchase price $644,756. Minimum buyer contribution $1,000. 8-hour homebuyer-education class required.

The program excludes

  • Manufactured homes
  • Purchases above the $644,756 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

SDLP - HomeStarter Loan limits household income to 80% of the area median income, which varies by county and household size.

  • HomeStarter tier: household income approximately $66,300 (1-person) to $124,950 (8-person) - 80% HUD AMI for the Baltimore-Columbia-Towson MSA.
  • 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?

SDLP - HomeStarter Loan caps the purchase price at $644,756.

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

Where does it apply?

SDLP - HomeStarter Loan serves buyers purchasing in Howard County, Maryland.

How do you apply?

Applications for SDLP - HomeStarter Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved housing counseling agencies; 8-hour homebuyer-education certificate required..

  2. Contact the administering agency to reserve funds

    Funds are reserved through First-come, first-served via Howard County DCS., and are subject to availability.

  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.

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SDLP - HomeStarter Loan, explained

A short, free course on SDLP - HomeStarter Loan: what it is, who it is for, when it is repaid, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

5 modules · About 10 minutes

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