Maryland’s housing department has expanded its homebuying initiative, allowing homebuyers to eliminate more student loan debt and low-income borrowers to tap additional loan options for down payment and closing cost assistance.
“As the country continues to deal with an inflation crisis, we are again taking steps to provide relief to Marylanders,” Gov. Larry Hogan said in a statement. “Our SmartBuy initiative—the first of its kind in the country—has established a national model for removing persistent roadblocks to homeownership and financial security, and this expansion will allow us to help even more families.”
Under the Maryland Department of Housing and Community Development’s SmartBuy initiative, homebuyers can now get $50,000 in assistance to pay off student loans – up from $30,000 previously – or 15% of their home purchase price, whichever amount is lower.
Borrowers whose income is at or below 50% of the average median income can receive a 6% down payment and closing cost assistance loan.
The option of $6,000 or a 4% down payment and closing cost assistance loan remains for all borrowers who are using the SmartBuy product.
“As interest rates increase and demand drives housing prices up, the State of Maryland is always looking for innovative ways to help make homeownership affordable,” said Kenneth Holt, Maryland’s housing and community development secretary, in a statement. “Launched more than five years ago, SmartBuy was the first government mortgage program in the nation to specifically address student loan debt, which is a significant barrier for many potential homeowners.”
The state housing department provides other assistance to homebuyers. For more information, borrowers can visit mmp.maryland.gov.