Settlement Expense Loan Program (SELP)/Closing Cost Program

What is Settlement Expense Loan Program (SELP)/Closing Cost Program?

Settlement Expense Loan Program (SELP)/Closing Cost Program is a deferred second loan for homebuyers in Baltimore County, Maryland.

• Baltimore County's flagship closing-cost DPA: up to $10,000 deferred 15-year-forgivable second for first-time buyers in Community Conservation Areas. 0% interest, no monthly payment. 80% AMI, 5%-of-gross-income buyer contribution. Administered through partner counseling agencies.
• Up to $10,000 deferred forgivable closing-cost loan from Baltimore County Department of Housing & Community Development for first-time homebuyers purchasing in Baltimore County's designated Community Conservation Areas. Structured as a 0% interest deferred loan, FORGIVEN after 15 YEARS of continuous owner-occupancy as principal residence (full $10,000 due if sold/transferred/defaulted before end of 15-year affordability period). 80% area median income cap (adjusted for household size). First-time homebuyer required (no primary residence in past 3 years). Borrower must have liquid cash equal to 5% of GROSS household income to contribute toward purchase. Administered through Baltimore County's affiliated housing counseling agencies (Diversified Housing Development Inc., GO Northwest, etc.). Pairs with Maryland Mortgage Program (MMP) and other FHA/VA/USDA/conventional first mortgages.
• Funding comes from Federal CDBG, Federal HOME, and Local Government.

Do you have to pay it back?

Settlement Expense Loan Program (SELP)/Closing Cost Program is forgiven after 15 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 15-year forgiveness if owner-occupied as principal residence throughout the 15-year affordability period. If sale/transfer of title/default before end of 15 years, FULL $10,000 becomes due.
• 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 (SELP)/Closing Cost 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 (SELP)/Closing Cost Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% area median income (HUD), adjusted for household size. Baltimore County uses Baltimore-Towson HMFA limits.
• 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.

What kind of home can it be used for?

Settlement Expense Loan Program (SELP)/Closing Cost Program caps the purchase price as follows: No SELP-published purchase-price ceiling; subject to first-mortgage limits and MMP purchase-price limits if MMP-paired.

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

Where does it apply?

Settlement Expense Loan Program (SELP)/Closing Cost Program serves buyers purchasing in Baltimore County, Maryland.

• The program targets specific areas: TARGETED AREAS: Baltimore County's designated Community Conservation Areas (CCAs) - older, established communities targeted for revitalization. Includes Dundalk, Essex/Middle River, Catonsville, Lansdowne, Arbutus, Towson core, Pikesville, Randallstown, Woodlawn (older sections), etc. CCA map available from Baltimore County DHCD/Planning.

How do you apply?

Applications for Settlement Expense Loan Program (SELP)/Closing Cost 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 Baltimore County-affiliated HUD-approved housing counseling agencies: Diversified Housing Development, Inc.; GO Northwest Housing Resource Center; St. Ambrose Housing Aid Center; NHS of Baltimore (also serves county clients)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application processed through Baltimore County-affiliated housing counseling agency. First-come, first-served subject to fund availability., 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.