Settlement Expense Loan Program

What is Settlement Expense Loan Program?

Settlement Expense Loan Program is a deferred second loan for homebuyers in Harford County, Maryland.

• Harford County's Settlement Expense Loan Program (SELP) is a 0% interest deferred-payment second mortgage of up to $10,000 for first-time homebuyers purchasing primary residences in Harford County, MD. Administered by the Harford County Department of Housing and Community Development.
• Up to $10,000 in settlement-expense (closing-cost / down-payment) assistance as a 0% interest deferred-payment second mortgage for first-time homebuyers in Harford County, MD. Maximum purchase price $342,000-$444,000 depending on property type and target-area status.
• Funding comes from HOME, CDBG, Federal, and Local Government.

Do you have to pay it back?

Settlement Expense Loan Program 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?

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

What are the income limits?

Settlement Expense Loan Program limits household income to 120% of the area median income, which varies by county and household size.

• Household income approximately $72,950 (1-person) to $137,550 (8-person) per Harford County SELP guidelines.
• 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?

Settlement Expense Loan Program caps the purchase price at $444,000.

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

Where does it apply?

Settlement Expense Loan Program serves buyers purchasing in Harford County, Maryland.

• The program targets specific areas: Harford County, MD - higher purchase-price caps available in HUD-designated target areas.

How do you apply?

Applications for Settlement Expense Loan Program 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 Harford County; homebuyer-education certificate required..

2. 2

   Contact the administering agency to reserve funds

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