Lenders must be approved by US Bank (the master servicer) and complete an application to be a participating lender. After the Department of Housing and Community Development reviews and approves the required application and supporting documentation, the lender receives an initial training and is given access to the Lender Online internet reservation system. See Information and forms/templates.
The Department receives authority through the IRS to issue tax-exempt mortgage revenue bonds to fund mortgages under the Maryland Mortgage Program. It is a requirement of the federal government that this documentation be used in order to establish the borrower's eligibility under the IRS rules.
The following are eligible:
=> Loans insured or guaranteed through Government insurers/guarantors - FHA, VA or Rural Housing Service (RHS);
=> Uninsured conventional (80% or less Loan-to-Value);
=> Conventional loans insured through private mortgage insurers approved by the Department.
The loan must be made to an income eligible borrower to purchase a home in which they will reside and whose purchase price is within the limits for the program.
Reservations are entered by the lender through Lender Online, an internet-based reservation system. Once an eligible reservation is entered, the lender receives an immediate confirmation. Lender Online is available 24/7 and provides up-to-the-minute status on loans from reservation to submission of final documents.
Go to www.ffiec.gov/Geocode and enter a street address to obtain a census tract number.
Yes. The debt-to-income ratios may not exceed:=> For all manually underwritten loans: 36% with exceptions up to 45% with strong compensating factors per Fannie Mae guidelines for conventional loans or the applicable guidelines for an FHA, VA or RHS insured/guaranteed loan;=> For all automated underwritten loans, the maximum is 45%.
The underwriting standards for Maryland Mortgage Program loans are the standards of the applicable insurer or of the master servicer, whichever are more stringent.
Targeted areas are federally designated areas that are considered distressed or areas in which 70% or more of the families have an income which is 80% or less of the statewide median family income. In targeted areas, purchasers using the Maryland Mortgage Program do not have to be first time homebuyers. Priority Funding Areas are areas designated by jurisdictions in conjunction with the State as areas in which growth should occur. Purchasers using the Maryland Mortgage Program may buy existing homes anywhere in the State, but new construction must be in Priority Funding Areas.
The processing time on a Maryland Mortgage Program loan should be no different than other loans processed by the lender. The Department does require a review of the file for compliance with federal requirements prior to settlement. Turnaround time for these reviews is based on volume, with a goal of 48 hours.
Maryland Mortgage Program funds are available continuously.
Yes, there are several options:=> For loans=> For grants
The Maryland Mortgage Program allows lenders to charge normal and customary underwriting and processing fees for the first mortgage, per Directive 2016-15. This is not a percentage and does not vary according to the loan amount. We recommend that each lender identify their normal and customary fees and send that (fully broken out) to Karl Metzgar, our Operations Manager (firstname.lastname@example.org). If he confirms that those are fine, he'll keep them on record and the lender would charge the same every time consistently.
The only fee that can be charged for DPA seconds is the recording fee.
For the Maryland HomeCredit (MCC), CDA normally charges a $450 fee for an MCC done with an MMP loan, and the lender can charge up to $350 for their processing fee on that, for a total of $800 to the borrower. For Maryland HomeCredits done without an MMP loan, the fees are higher.
With regard to other lender compensation, see Directive 2017-03.
A Maryland HomeCredit is available only with the purchase of a home, not afterward or separately.
The certificate is good for the life of the principal loan; the Maryland HomeCredit can be used every year while the principal loan is active.
The Maryland HomeCredit is for reservations on or after June 1, 2014; the closing date is not a factor.
The Maryland HomeCredit is a tax credit and therefore cannot be used together with any tax exempt bond funds; The Department uses bond funds to finance the reduced rate for the REO program. That is also the case with several of our special initiatives.
It is necessary to be an approved Maryland HomeCredit lender to provide these mortgage credit certificates to borrowers. Go the Application page to learn more about becoming an approved Maryland HomeCredit lender.
The Maryland HomeCredit is tied to a principal loan, and cannot be transferred to another property.