Maryland offers $5,000 for Down Payment Assistance
In celebration of Homeownership Month, the state will increase the funds available through the DSELP program to $5,000 for loans reserved from June 1, 2009 through June 30, 2009. Eligible borrowers must obtain a loan through the Maryland Mortgage Program (MMP) and they may also claim the 2009 federal First-Time Homebuyer Tax Credit.
For more information, go to www.mmprogram.org
Tax Credit can be Used as Down Payment for FHA Loans
The United States Department of Housing and Urban Development (HUD) announced a program that will permit the first-time homebuyer tax credit to be used for down payments or closing costs on FHA-insured mortgages. The program will permit lenders to monetize the tax credit for down payments or closing costs that exceed 3.5 percent of the home’s purchase price. Lenders caution that it will take time for the industry to develop this product. Specific HUD guidance is provided in Mortgagee Letter 2009-15 that can be accessed by clicking the link below.