Baltimore County Settlement Expense Loan Program

Highlights of the BALTIMORE COUNTY "SELP" PROGRAM
American Dream Downpayment Initiative (ADDI) Settlement Expense Loan Program

This program is an effort to encourage first time homebuyers to consider home ownership in existing residential communities in Baltimore County. Home Buyer’s Workshops and Home Ownership counseling are offered to potential homeowners. Settlement Expense loans up to $10,000 are available to individuals and families who meet the following income limits and eligibility requirements:
 

Buyer eligibility requirements

A SELP borrower must:

1. Attend a Homebuyer Education Workshop & 1-on-1 Counseling with a Baltimore County affiliated Housing Counseling Agency PRIOR to signing a real estate contract of sale.

2. Meet Household Income eligibility as shown in table above.

3. Be a First-Time home buyer or meet one of the exceptions.

4. Qualify for a fixed rate mortgage with a Participating Lender.

5. Be able to meet the minimum cash contribution which is 5% of annual household income. (This cash must be from your own funds...not a gift.)

6. Have less than 12% of gross annual household income left in cash assets after settlement expenses are paid.

7. Buyers mortgage payment and total debt payments cannot exceedt maximum ratio guidelines of 31% and 43%.

8. Gift contributions may not exceed 3% of the sale price.

9.  SELP loan may be combined with CDA's DSELP closing cost assistance loan and the Federal Home Loan Bank grant as long as SELP retains second lien position.

Property criteria

The property must:

1. Be owner-occupied, occupied by the buyer, or vacant. New construction is excluded.

2. Be a single family detached or semi-detached home, townhouse, or
condominium unit.

3. Be located in Baltimore County’s inner ring of suburban communities (see map).   (Excluded are the new-growth areas of White Marsh and Owings Mills, as well as rural areas.)

4. Have a Home Inspection and meet Federal Housing Quality Standards (HQS) using an approved Home Inspection firm. All noted HQS deficiencies must be corrected and verified prior to final SELP Loan approval.

SELP loan terms


1. SELP Loan Amount: Minimum $1,000, Maximum $10,000.

2. May be used for Closing Costs, Down payment, and Repairs that may be required by the Federal Housing Quality (HQS) Home Inspection.

3. Interest Rate = 0%, Monthly Payments = $0

4. The SELP Loan is deferred for fifteen (15) years. After 15 years, the loan is forgiven unless sale, refinance, transfer of title, borrower no longer occupies the home, or default occurs before the end of the 15 years. See Repayment Schedule for sales prior the 16th year.

5.  Loan  principal is repayable upon the  earlier to occur of Sale, refinance, transfer, default on primary loan, or borrower no longer occupies the home.

6. The SELP loan may be combined with CDA's DSELP loan and the Federal Home Loan Bank grant so long as SELP retains second lien position.

Please Note: The Official SELP PROGRAM GUIDELINES & PROCEDURES adopted by the Baltimore County Office of Community Conservation take precedence and clarify the details of the information presented here.



EQUAL HOUSING LENDER
Baltimore County
Office of Community Conservation
Housing Opportunities Program
6401 York Road – Second Floor, Baltimore, MD 21212
410-887-3124; Fax: 410-887-5696