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.

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.

Settlement Expense Loan Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer (no ownership of residential real estate in prior 3 years). On credit, the program states: 640 minimum FICO recommended; underwriting per first-mortgage product. A homebuyer education course is required, through HUD-approved housing counseling agencies serving Harford County; homebuyer-education certificate required. Residency requirement: Property within Harford County, MD; buyer's primary residence. Citizenship or immigration status: U.S. citizen or eligible non-citizen permitted by HUD HOME / CDBG rules. Property must be located in Harford County, MD, and be the buyer's primary residence. First-time homebuyer required (no ownership of residential real estate in prior 3 years). Maximum purchase price $342,000-$444,000 depending on property type and target-area status. Maximum household income approximately $72,950 (1-person) to $137,550 (8-person). Minimum buyer contribution typically $1,000. 8-hour HUD-approved homebuyer-education class required. Loan is 0% interest, deferred for the life of the loan; repaid upon sale, refinance with cash-out, transfer, or loss of primary-residence status.

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.

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.

Settlement Expense Loan Program serves homebuyers purchasing in Harford County, Maryland. The program targets specific areas: Harford County, MD - higher purchase-price caps available in HUD-designated target areas.

Applications for Settlement Expense Loan Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served subject to annual HUD HOME / CDBG funding. 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.