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.

Settlement Expense Loan Program (SELP)/Closing Cost Program is forgiven after 15 years, so a homebuyer 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.

Settlement Expense Loan Program (SELP)/Closing Cost Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Standard 3-year FTHB lookback; HUD displaced-homemaker / single-parent exceptions. On credit, the program states: No SELP-published minimum; first-mortgage lender's product minimums apply. A homebuyer education course is required, 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). Residency requirement: Property must be in Baltimore County's designated Community Conservation Areas and serve as primary residence. Citizenship or immigration status: Per first-mortgage product rules. First-time homebuyer (no primary residence ownership in past 3 years; HUD displaced-homemaker / single-parent exceptions). Property must be located in Baltimore County's designated Community Conservation Areas (CCAs - older, established communities targeted for revitalization; map available from Baltimore County DHCD/Planning). 80% area median income cap (HUD limits, by household size). Owner-occupied primary residence. Buyer must contribute cash equal to 5% of gross annual household income. 15-year affordability period (forgivable if owner-occupied throughout). $10,000 maximum loan. Pre-purchase counseling certificate from Baltimore County-affiliated agency required.

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.

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.

Settlement Expense Loan Program (SELP)/Closing Cost Program serves homebuyers 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.

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