Owning your first home is hard to imagine when you’re paying off thousands of dollars in student debt. How would it feel to pay off your student loans and get financial assistance to buy your first home? Spectacular, right!?
Maryland SmartBuy 3.0 program is designed for people with student debt who want to buy their first home. You must have a minimum of $1,000 but no more than $30,000 in student loans to qualify for the SmartBuy program. Keep reading to learn more.
Requirements:
- Partial loan payment is not permitted; must pay the entire loan through the program
- Must use approved Maryland SmartBuy lender
- Must meet eligibility requirements
- MInimum student debt: $1,000
What’s included:
- A maximum 15% of the home's purchase price is provided to pay off student debt (<$30K) at the time of house purchase
- 1st mortgage: up to 95% of the purchase price of the home (30-year conventional loan)
- No second loan repayment if you live in the house for at least 5 years
- 5-year forgivable second loan, 0% deferred interest
- Optional 2nd mortgage as down payment assistance loan
The optional second mortgage is for down payment assistance (DPA). You can choose from two down payment options: $6,000 or a DPA loan which is equal to 4% of the first mortgage. Both of these options are 0% deferred loans.
If you are a resident of Maryland, have at least $1,000 in student debt, and want to buy your first home, look into this program. You could pay off your outstanding student debt and buy your first home simultaneously. Remember to share this Maryland DPA and student loan relief program with your friends and family looking to buy their first home.
For more information on buying your first home, please check out Reazo’s comprehensive home buyer’s guide and bookmark it for future reference:
