Real Estate Report

(March 22, 2019) The Maryland Mortgage Program has announced they will now allow repeat buyers, versus only first-time buyers as in the past, to use the “Flex” loan programs to buy a home in Maryland.

These 30-year fixed-rate home loan programs are offered through approved lenders for eligible homebuyers in Maryland.

The loan terms are competitive with other home loan products on the market, but what makes MMP unique is the range of associated financial incentives and other assistance.

Here is a breakdown of the various programs available through the Maryland Mortgage Flex program, and now open to repeat buyers, as well as first-time buyers:

•Flex Direct

No down payment assistance (DPA) available, but offers the most competitive interest rates that can still get a mortgage credit certificate (MCC). External sources of DPA may be used.

•Flex 5000

Comes with a $5,000 loan for down payment and closing costs. This second lien has a zero percent interest rate, and no payments are due for the life of the first mortgage.

As soon as the first mortgage ends (repayment, refinance, transfer, sale, etc.), the second lien is due and payable.

The $5,000 line is eligible for Partner Match funds, if applicable. (Partner Match is where employers/organizations in Maryland have programs to help homebuyers including grants, loans and other assistance.

When using the Loan Assist program, Partner Match provides up to an additional $3,500 as additional DPA.)

•Flex 3 percent Loan

Comes with a DPA loan equal to 3 percent of the first mortgage in a zero percent deferred second lien.

•Flex 3 percent Grant

Comes with a grant equal to 3 percent of the first mortgage . Grant does not get repaid.

•Flex 4 percent Grant

Comes with a grant equal to 4 percent of the first mortgage. Grant does not get repaid.

“This is great news for buyers looking to move up or downsize and some of the Flex loans provide help with closing costs and down payment in the way of loans/grants,” said Donna Allenbaugh, branch manager of Residential Mortgage Services, Inc.

The Flex options can be for repeat buyers as long as no real estate is owned at closing of the new home.

­– Lauren Bunting is an Associate Broker with Bunting Realty, Inc. in Berlin.

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