hOWARD COUNTY - SETTTLEMENT DOWNPAYMENT LOAN PROGRAN (sdlp)

1. Check Eligibility: 🧐 Visit the official Prince George's County website or contact their housing department to verify your eligibility for the Pathway to Purchase program.
2. Attend Homebuyer Education: 📚 Complete a HUD-approved homebuyer education class. This is a mandatory requirement for participation.
3. Find a Participating Lender: 🏦 Select a lender that participates in the Pathway to Purchase program. They will guide you through the loan application process.
4. Apply for Pre-Approval: 📝 Submit your mortgage application and necessary documents to the lender for pre-approval.
5. Search for Homes: 🏠 Begin searching for homes within Prince George's County that meet the program's criteria.
6. Make an Offer: 💰 Once you find a suitable home, work with your real estate agent to make an offer.
7. Loan Processing: 🛠️ Your lender will process your loan application, including appraisal and underwriting.
8. Closing Process: 🎉 Coordinate with your lender, real estate agent, and the program administrator to finalize the purchase.
9. Receive Assistance: 💸 Upon closing, receive the down payment and closing cost assistance provided by the Pathway to Purchase program.
10. Celebrate Your New Home: 🎈🏡 Move into your new home and enjoy the benefits of homeownership in Prince George's County!

Make sure to stay updated with the program's requirements and deadlines throughout the process. Good luck with your home purchase journey!

⏳ As of June 1, 2024 there are $671,381.74 available

• First-Time Homebuyer Status: 🏠 Applicants must be first-time homebuyers, meaning they have not owned a home within the past three years.
• Income Limits: 💰 There are income limits based on household size. Applicants must fall within these limits to qualify for assistance. Please inquire on this page.
• Home Purchase Price Limits: 🏡 There are maximum home purchase price limits based on the property's location and type. For new construction the purchase limit is $467,000 and for existing homes that are for sale the limit is $432,000.
• Debt Ratio Standards: 📈 The maximum Housing or front -end monthly debt to income Ratio (DTI) of 35%. The maximum total or back end monthly (DTI) ratio is 47%. NO EXCEPTIONS on the maximum front end or back end DTI ratio.
• Homeownership Education: 📚 Completion of a HUD-approved homeownership education course is required to understand the responsibilities of homeownership. An HQS inspection is also required (Home Quality inspection).
• Residency and Use Requirements: 🌟 Applicants must intend to use the purchased home as their primary residence and may need to commit to living there for a specified period.
• Legal Requirements: 📝 Applicants must meet all legal requirements for purchasing a home in Prince George's County and comply with program rules. The home must be in Prince Georges County, MD.
•  Terms of Program:  Pathway to Purchase is a 0% interest, deferred payment loan. The loan is forgiven after 10 years! The interest rate for the funds you are provided is 0%.  However, in the event of a default, the outstanding balance owed will become due and payable at an interest rate of 5.75% beginning on the month of the default.
• Credit Score: There is no minimum credit score requirement, however applicants must be credit worthy
• Minimum Contributions: There is no minimum cash contribution required by applicants.