Louisiana

LHC Mortgage Revenue Bond (MRB) Program

The Louisiana Housing Corporation (LHC) offers the Mortgage Revenue Bond (MRB) Program aimed at assisting first-time homebuyers in securing financing while providing down payment and closing cost assistance. This program comprises two primary initiatives: Mortgage Revenue Bond Home and Mortgage Revenue Bond Assisted.

Mortgage Revenue Bond Home Program

The Mortgage Revenue Bond Home Program, offered by the Louisiana Housing Corporation (LHC), extends assistance to first-time homebuyers who are at 80% AMI or less to purchase one-unit family homes.

Highlights:

• • 30-year first mortgage
  • Interest rates that are below market level.
  • Grants available for down payment and closing costs.

Eligibility:

• • Specifically designed for first-time homebuyers who are at 80% Area Median Income (AMI) or less
  • Debt-to-Income Ratio: Maximum 41%
  • Minimum credit score required: 640.
  • Must meet local income requirements
  • Home must be One Unit Primary Residence, Townhouses, Condos, Manufactured

Benefits:

• • Offers a grant ranging from 5% to 9% of Final Loan Amount for down payment and closing costs.
  • Reduced Mortgage Insurance (MI) for Conventional Loans.

Requirements:

• • Property purchase price must not exceed specified limits.
  • The home should be the primary residence in Louisiana.
  • Must complete Homeownership Education class

How to Apply:

• • Determine eligibility
  • Select an approved lender for pre-qualification.
  • Begin home search with a Realtor.
  • Finalize the loan process by reserving funds for assistance with the Louisiana Housing Corporation.

Mortgage Revenue Bond Assisted Program

This program helps prospective homebuyers who may not have enough money to meet down payment and closing costs. The program has interest rates that are usually at market level.

Highlights:

• • Offers a second mortgage for down payment and closing costs.
  • Provides reduced Mortgage Insurance (MI) for Conventional Loans.

Eligibility:

• • Primarily for first-time homebuyers unless property is in a targeted area.
  • Property must be in Louisiana.
  • Minimum credit score required: 640.
  • Income limits vary based on loan type and household size; not exceeding 115% of the median income in non-targeted areas or 140% in targeted areas

Benefits:

• • Down payment and closing costs assistance come in the form of a soft-second that is equal to 4% of the mortgage amount
  • Reduced MI for Conventional Loans

Requirements:

• • Property purchase price must align with established limits.
  • The home should be the primary residence in Louisiana.

How to Apply:

• • Determine eligibility
  • Select an approved lender for pre-qualification.
  • Begin home search with a Realtor.
  • Finalize the loan process by reserving funds for assistance with the Louisiana Housing Corporation.

LHC Market Rate Conventional Program

The Louisiana Housing Corporation (LHC) extends its Market Rate Conventional Program, offering a conventional mortgage for potential homebuyers striving for safe, affordable, and energy-efficient housing.

Highlights:

• • Available to both first-time and repeat homebuyers.
  • Maximum allowed 80% Area Median Income (AMI) by Parish and Household size.
  • Offers a competitive 30-year fixed rate.
  • Reduced mortgage insurance.

Eligibility:

• • Open to potential homebuyers, not limited to first-time homebuyers, within 80% AMI limits.
  • Property purchase restricted to Louisiana.
  • Minimum loan amount: 640.
  • Loan amount capped at $453,100.
  • Suitable for the purchase of single-family housing (1 unit principal residence).
  • First-time homebuyer education required.
  • Debt-to-Income Ratio: Maximum 50%

Benefits:

• • Offers up to 4% assistance for down payment, closing costs, and prepaid items.
  • No origination or discount fees.
  • Reduced mortgage insurance.
  • No additional bond documents or compliance package needed.

Requirements:

• • Meet income criteria based on 80% AMI by parish.
  • Homebuyer education required for first-time homebuyers

How to Apply:

• • Determine eligibility
  • Select an approved lender for pre-qualification.
  • Begin home search with a Realtor.
  • Finalize the loan process by reserving funds for assistance with the Louisiana Housing Corporation.

LHC Market Rate GNMA Program

The Market Rate GNMA Program offered by Louisiana Housing Corporation (LHC) provides an avenue for both first-time and repeat homebuyers with incomes at or below

115% AMI to purchase one-unit family homes

Highlights:

• • Available for both first-time and repeat homebuyers.
  • Offers competitive 30-year fixed-rate FHA, VA, or USDA Rural Development first mortgage loan product.

Eligibility:

• • Suitable for single-family housing (1 unit principal residence).
  • Property must be located in Louisiana.
  • Household income eligibility up to 115% of the area median income (AMI).
  • Minimum credit score required: 640.
  • FHA, VA, or USDA Rural Development loan products.

Benefits:

• • Allows both first-time homebuyers and repeat buyers.
  • Offers competitive 30-year fixed-rate mortgages.
  • Assists with up to 4% of down payment, closing costs, and/or prepaid items.
  • No origination or discount fees.
  • No additional bond documents or compliance package required.

Requirements:

• • Household income must comply with parish-specific maximum limits
  • One Unit Primary Residence, Townhouses, Condos, Manufactured (additional requirements for manufactured homes apply)

How to Apply:

• • Determine eligibility
  • Select an approved lender for pre-qualification.
  • Begin home search with a Realtor.
  • Finalize the loan process by reserving funds for assistance with the Louisiana Housing Corporation.

LHC Delta 100 Program

The Louisiana Housing Corporation (LHC) Delta 100 Program is a specialized initiative designed for credit-challenged first-time homebuyers within specific parishes. This program provides up to 100% financing and up to 3% closing cost and prepayment assistance.

Highlights:

• • 30-year, 2% fixed interest rate
  • First-time homebuyer only with no minimum credit score
  • Homebuyer education required

Eligibility:

• • First-time homebuyer only with no minimum credit score
  • Available solely for single-family home purchases.
  • Limited to specific parishes, including Caldwell, Catahoula, Concordia, East Carroll, Franklin, Madison, Morehouse, Pointe Coupee, Richland, Tensas, West Carroll,
  • Household income up to HUD 80% AMI by parish and household size
  • and Ouachita (excluding Monroe).
  • Maximum loan amount of $242,000

Benefits:

• • Up to 100% Financing, dependent upon credit score
  • Borrowers denied through conventional methods, may be considered eligible for participation
  • No Minimum Credit Score
  • Low interest rate of 2%
  • 3% toward closing cost and prepaid items (grant)
  • Non traditional credit allowed

Requirements:

• • Borrower investment: 1% of purchase price or $1,500, whichever is less (gifts not allowed)
  • Completion of a Homebuyer Education Course
  • Possession of sufficient cash reserves to qualify

How to Apply:

• • Determine eligibility
  • Contact the participating lender for this program: Scott Cobb

AVP | Mortgage Loan Officer II

3524 S Sherwood Forest Boulevard Baton Rouge LA 70816 P (225) 300-8329 | F (225) 389-6565

NMLS# 83704

Home24Bank.com

• • Begin home search with a Realtor.
  • Finalize the loan process by reserving funds for assistance with the Louisiana Housing Corporation.

Premier Conventional & Government Program

The Premier Conventional & Government Program by LHC is a versatile offering designed to assist both first-time homebuyers and repeat buyers. This program provides competitive 30-year fixed-rate loans with various benefits tailored to meet diverse financial needs.

Highlights:

• • Not restricted to first-time homebuyers.
  • Tailored for borrowers seeking competitive 30-year fixed-rate loans.

Eligibility:

• • Maximum household income up to $99,000 based solely on borrower(s)’ income.
  • Minimum credit score requirement of 640.
  • Flexibility above 80% Area Median Income (AMI) with pricing variances.
  • Property location limited to Louisiana.
  • Loan-to-Value (LTV) at 97% / Combined Loan-to-Value (CLTV) at 105%.
  • Mandatory homebuyer education for first-time homebuyers.

Benefits:

• • Open to both first-time and repeat buyers.
  • Reduced mortgage insurance for 80% and below AMI (Conventional Only).
  • No origination or discount fees.
  • No additional bond documents or compliance package.
  • Inclusion of Manufactured Home, After July 5th (Government Only).

*NEW PREMIER GOVERNMENT PROGRAM:

LHC introduces an innovative Government Product, expanding the Premier Loans suite through Lakeview:

• • FHA, VA, and USDA.
  • No borrower investment required.
  • Minimum FICO score of 640.
  • Qualifying income limit at $99,000.
  • Debt-to-Income ratio set the lesser of 50% or AUS.
  • Restricted to new purchases only (no refinances).
  • Applicable to new or existing single-unit homes, condos, manufactured homes, and townhomes.
  • Mandatory Homebuyer Education before close.
  • Property must be located in the State of Louisiana.

Mortgage Credit Certificate (MCC) Program

This $5 million statewide program assists first-time homebuyers, veterans, and low to moderate-income buyers in designated areas by allowing them to claim a federal tax credit of up to 40% of their annual mortgage interest payments, capped at $2,000 yearly, for the duration of their loan.

Highlights:

• • Available for low to moderate-income first-time homebuyers.
  • Offers up to 40% of annual mortgage interest payments as a tax credit (maximum

$2,000 annually).

• • Continuous tax credit eligibility contingent upon primary residence occupancy.

Eligibility:

• • Income limits based on household size and property location.
  • Must file IRS Form 8396 with federal tax returns.

Benefits:

• • Can be used in conjunction with the LHC’s down payment assistance programs.
  • Increases applicant’s disposable income, potentially increasing eligible loan amounts.
  • MCCs can be layered with any first-time homebuyer loan product except mortgage revenue bonds.
  • Master Servicer approval is not required.
  • Available statewide.

Requirements:

• • Income limits vary based on household size and property location.
  • Purchase price limits apply
  • Homebuyer Education Counseling Certificate required
  • Participants must file IRS Form 8396 with their federal tax returns.

How to Apply:

• • Determine your income eligibility. Maximum annual income limits are listed here.
  • Select an approved lender for pre-qualification.
  • Begin home search with a Realtor.
  • Finalize the loan process by reserving funds for assistance with the Louisiana Housing Corporation.

Pathways to Homeownership Program

The Pathways to Homeownership Soft Second program aims to bridge the affordability gap between a homebuyer’s maximum affordability and the purchase price of a home, ensuring safe, affordable, and energy-efficient housing for Louisiana residents.

Highlights:

• • First-time homebuyer
  • Designed for individuals with an annual household income at or below 80% of the Area Median Income (AMI).
  • Properties must not be situated in flood zones.

Eligibility:

• • First-time homebuyers
  • Annual household income at or below 80% of the Area Median Income (AMI).
  • Properties must not be located in a Special Flood Hazard Area

Benefits:

• • A Soft Second Loan of 20% of the purchase price up to $55,000.
  • Provides up to $5,000 for closing costs, totaling a maximum of $60,000.
  • Principal repayment for Pathway To Homeownership loan deferred until sale or refinance
  • If homebuyer stays in the home for the full ten-year term, soft second loan is forgiven

Requirements:

• • Applicants must meet the eligibility criteria as first-time homebuyers or fit within the income limits specified.
  • The property must not be situated in a flood zone.
  • Required to invest the greater of 1% of the purchase or $1500
  • Must complete a Homeownership Education class

How to Apply:

• • Eligible candidates can apply through approved lenders or designated financial institutions.

Maine

MaineHousing First Home Loan Program

MaineHousing’s First Home Loan Program provides affordable mortgages with low fixed interest rates. It allows for minimal to no down payments and can be combined with the “Advantage” program for additional assistance with down payments and closing costs.

Highlights:

• • Low fixed interest rates.
  • Options with little to no down payment.
  • Payment protection for unemployment through Maine HOPE (HomeOwnership Protection for unEmployment).

Eligibility:

• • Must be first-time homebuyer (Waived for qualified active duty, veterans, and retired military)
  • Minimum credit score requirement of 640.
  • Must meet household income limits.

Benefits:

• • Lower interest rates mean lower monthly payments.
  • Payment protection in case of job loss.
  • Assistance with down payment and closing costs.
  • Mortgage types: conventional, FHA, VA, USDA.

Requirements:

• • Minimum credit score of 640.
  • Adherence to MaineHousing income limits.
  • Property types include single-family homes, owner-occupied 2- to 4-unit apartment buildings, condominiums, and permanently attached mobile homes manufactured within the last 20 years

How to Apply:

• • Consider taking a Homebuyer Education class (This class is mandatory for MaineHousing borrowers that receive the “Advantage” downpayment & closing cost assistance)
  • Contact a MaineHousing First Home Lender to initiate the loan application process
  • Find a home with the help of real estate professional

First Generation Program

MaineHousing’s First Generation Pilot Program (First Gen) aims to assist borrowers who have never resided in a home owned by their biological parents or legal guardians, including those who have experienced foster care during childhood. This initiative provides an affordable pathway to homeownership by offering a low fixed interest rate mortgage, down payment and closing cost assistance, and essential education classes for long-term homeownership success.

Highlights:

• • Financial Literacy and Homebuyer Education classes required for applicants.
  • Low fixed interest rates with discount options.

Eligibility:

• • True first-time homebuyers having had NO previous ownership interest in a principal residence in any location at any time
  • Borrower has never lived in a home owned by their biological parents or legal guardians during the borrower’s lifetime; OR At least one Borrower is an individual who was in foster care at some point during their childhood.
  • Must meet household income limits.
  • Minimum credit score of 640 required.
  • Property types include single-family homes, owner-occupied 2- to 4-unit apartment buildings, condominiums, and permanently attached mobile homes manufactured within the last 20 years

Benefits:

• • Payment protection for unemployment through Maine HOPE.
  • Assistance with down payment and closing costs.
  • Low fixed interest rates with discount options.
  • $10,000 grant credited at closing, subject to completing Financial Literacy class and Homebuyer Education class approved by MaineHousing

Requirements:

• • Genuine first-time homebuyer status or foster care history.
  • Adherence to household income limits.
  • Must have an acceptable credit history with a minimum credit score of 640
  • Financial Literacy class and Homebuyer Education class approved by MaineHousing
  • Minimum Cash Contribution of 1% of the Loan amount

How to Apply:

• • Contact a MaineHousing First Home Lender.
  • Complete Financial Literacy and Homebuyer Education classes.
  • Apply for the First Generation Program through one of the approved First Home Lenders.

SaluteME & Salute Home Again

MaineHousing is proud to honor Maine’s veterans, active duty, and retired military personnel through the SaluteME program, offering a 0.50% discount on their already low First Home Loan 30-year fixed interest rate. Additionally, for veterans who have owed a home, the Salute Home Again program waives the first-time homebuyer requirement.

Highlights:

• • 0.50% discount on the First Home Loan 30-year fixed interest rate.
  • Waiver of the first-time homebuyer requirement for qualified active duty, veterans and retired military
  • Down payment and closing cost assistance
  • Little or no down payment loans available

Eligibility:

• • Active duty, have been honorably discharged, or served on active duty for 180 days or within a war zone
  • Veterans eligible for SaluteME or Salute Home Again.
  • Income and purchase price limits vary based on location and household size.

Benefits:

• • Various mortgage options: Advantage, Purchase Plus Improvement, and MaineHOPE.
  • Ability to combine SaluteME with multiple MaineHousing insurers.
  • Down payment and closing cost assistance up to $5,000.
  • Minimum Borrower Contribution of 1% of the loan amount and may be a gift

Requirements:

• • Active duty, honorably discharged, or served within a war zone.
  • Eligible property types as per guarantor/insurer guidelines.
  • Income and purchase price limits as outlined by the program.
  • Applicants must complete a hoMEworks-approved homebuyer education course prior to closing
  • Documentation including DD214, LES, and relevant sale details if waiving the first- time homebuyer requirement.

How to Apply:

• • Apply through one of our MaineHousing Lenders.

MaineHousing Advantage

The MaineHousing Advantage program offers down payment and closing cost assistance to qualifying homebuyers, providing up to $5,000 in cash towards a down payment or closing costs. To be eligible, borrowers must combine the assistance with a MaineHousing loan program, complete a homebuyer education course, and contribute at least 1 percent of the loan amount to the purchase, which can be from a gift.

Highlights:

• • Provides up to $5,000 in cash assistance for down payment or closing costs
  • Must be combined with a MaineHousing loan program
  • Requires completion of a homebuyer education course
  • Borrower must contribute at least 1 percent of the loan amount to the purchase

Eligibility:

• • Borrowers using a MaineHousing First Home, Salute ME, or Mobile Home Self- Insured Home Mortgage
  • Must meet income and purchase price limits (same as FirstHome)
  • Insurance/guaranty options include FHA, VA, RD, Mobile Home Self-Insured (MHSI), and uninsured MaineHousing-approved private mortgage insurance

Benefits:

• • Assists with down payment and closing costs
  • Can be combined with various MaineHousing loan programs
  • Principal reduction must be less than $500
  • Additional assistance available for multi-unit properties
  • No liquid asset test
  • No interest rate add on
  • No additional documentation required
  • No increase in loan amount
  • No second mortgage required

Requirements:

• • Complete a hoMEworks-approved homebuyer education course prior to closing
  • Minimum borrower cash contribution of 1% of the loan amount required, which may be a gift
  • Must adhere to program restrictions, including no cash back at closing and limits on principal reduction

How to Apply:

• • Combine the MaineHousing Advantage assistance with a MaineHousing loan program
  • Complete a hoMEworks-approved homebuyer education course prior to closing

For more information, you may contact MaineHousing at 800-452-4668 | (207) 626-4600 or Maine Relay 711.

Maryland

Maryland Mortgage Program (MMP) 1st Time Advantage

1st Time Advantage loans within the Maryland Mortgage Program aim to offer the lowest 30-year fixed interest rates for eligible first-time homebuyers. Multiple loan options cater to varying down payment needs and interest rates, each tailored to suit different financial situations.

Highlights:

• • 1st Time Advantage Direct: Competitive interest rates with no DPA (down payment assistance) but allowing external DPA sources.
  • 1st Time Advantage 6000: Offers a $6,000 loan for down payment and closing costs with a zero percent interest rate, becoming due and payable when the first mortgage ends.
  • 1st Time Advantage 3%, 4%, 5% Loan: Provides DPA loans equal to 3%, 4%, or 5% of the first mortgage in a zero percent deferred second lien.
  • HomeStart: Specifically for borrowers with income at or below 50% AMI, offering a 0% interest, 30-year deferred DPA loan equal to 6% of the MMP total loan amount (first lien).

Eligibility:

• • First-Time Homebuyer or didn’t own home in last 3 yrs; unless buying in targeted area or veteran using exemption for the first time
  • Income, Loan and Purchase Limits (vary by jurisdiction and size of household)
  • Maximum Debt-to-Income (DTI) Ratio is 50%
  • Minimum Credit Score is 640
  • Property must be the primary residence of the homebuyer(s)

Benefits:

• • Offers highly competitive interest rates for eligible first-time homebuyers.
  • Various Down Payment Assistance loan options
  • Targeted Area Benefits: Certain areas have higher income limits and specific eligibility criteria.

Requirements:

• • Must complete Homebuyer Education (HBE)
  • Property must be “Owner Occupied”
  • Targeted Areas: Vary in eligibility criteria and income limits; certain counties have all properties classified within Targeted Areas.

How to Apply:

• • Connect with approved MMP lenders to determine eligibility and navigate the various loan options available within the Maryland Mortgage Program.

Maryland Mortgage Program (MMP) Flex Loans

The MMP Flex Loans provide 30-year fixed-rate home loan options that cater to both repeat homebuyers and first-time buyers. These loans include various down payment assistance (DPA) options and offer competitive interest rates.

Highlights:

• • Flex Direct: Offers competitive interest rates to repeat homebuyers without DPA, allowing external sources of DPA.
  • Flex 5000: Includes a $5,000 zero percent interest rate loan for down payment and closing costs, becoming payable when the first mortgage ends.
  • Flex 3% Loan: Provides a DPA loan equal to 3% of the first mortgage in a zero percent deferred second lien.

Eligibility:

• • Open to both First-Time Homebuyer and Repeat Homebuyers
  • Even if the borrower does not have to be a first-time homebuyer, they still may not own a residence or other real property at the time of closing.
  • Income, Loan and Purchase Limits (vary by jurisdiction and size of household)
  • Maximum Debt-to-Income (DTI) Ratio is 50%
  • Minimum Credit Score is 640
  • Property must be the primary residence of the homebuyer(s)

Benefits:

• • Offers highly competitive interest rates
  • Various Down Payment Assistance loan options
  • Targeted Area Benefits: Easier eligibility in specific parts of Maryland with slightly higher income limits.

Requirements:

• • Must complete Homebuyer Education (HBE)
  • Property must be “Owner Occupied”
  • Targeted Areas: Vary in eligibility criteria and income limits; certain counties have all properties classified within Targeted Areas.

How to Apply:

• • Connect with approved MMP lenders to assess eligibility and explore the available loan options under the Maryland Mortgage Program Flex.

Maryland SmartBuy 3.0 Program

Maryland SmartBuy 3.0 offers an opportunity for homebuyers in Maryland to purchase homes while paying off their student debt.

Highlights:

• • Provides up to 15% of the home purchase price with a maximum of $20,000 to pay off existing student debt.
  • Offers conventional financing through the Maryland Mortgage Program for eligible properties.
  • Replaces prior SmartBuy products and aligns with regular conventional loans.

Eligibility:

• • Requires a minimum student debt balance of $1,000.
  • Full student debt for at least one borrower must be paid off at the time of home purchase.
  • Must meet all eligibility requirements for the Maryland Mortgage Program (MMP).

Benefits:

• • Debt Payment Assistance: Provides a no-interest, deferred Promissory Note to pay off student loans, forgivable over 5 years.
  • Flexible Loan Structure: Offers up to 97% financing with a conventional first mortgage and a second loan to pay off student debt.
  • Down Payment Assistance: Options for a second mortgage as Down Payment Assistance, either a $6,000 loan or 6% of the first mortgage (for eligible income levels).

Requirements:

• • Credit score requirement of 720
  • Minimum remaining balance of student loan debt of $1,000 and up to a maximum of 15% of the sales price or $20,000, whichever is lower.
  • An eligible educational institution is an accredited public, nonprofit, or proprietary (privately owned profit-making) college, university, vocational school, or other postsecondary educational institution AND must be eligible to participate in a student aid program administered by the U.S. Department of Education.
  • Verification of the amount of the indebtedness from the student loan lender/servicer
  • Must complete Homebuyer Education (HBE)

How to Apply:

• • Contact approved Maryland SmartBuy lenders for detailed eligibility confirmation and application for the Maryland SmartBuy 3.0 program.

HomeAbility Program

HomeAbility is a specialized program aimed at aiding Maryland first-time homebuyers with disabilities in financing their home purchase.

Highlights:

• • Provides up to 95% LTV in the first lien and up to 25% in a second lien for down payment and closing costs.
  • 30-year amortizing conventional mortgage for the first lien; second (non-amortizing) lien is deferred for the life of the first lien
  • May be offered only by gold- or silver-tier lenders (defined as having had 15+ MMP loans purchased during a previous quarter)

Eligibility:

• • One of the borrowers is disabled; OR one of the borrowers is a guardian for, resides with, and is the principal caregiver for an immediate family member who is disabled (regardless of age)
  • First-Time Homebuyer(s) or didn’t own home in last 3 years; unless buying in targeted area or veteran using exemption for the first time
  • Disability Documentation: Requires proof of disability by a health, mental health, or disability professional, or proof of income from relevant entities like the Social Security Administration.
  • Income Criteria: Designed for homebuyers at or below 80% of the Area Median Income (AMI).
  • Only available through Gold- or Silver-tier lenders.

Benefits:

• • Dual Financing: Comprises a conventional first lien and a deferred second lien for down payment assistance.
  • Fixed interest rate for the first lien and 0% interest for the second lien.
  • Income and Purchase Limits apply

Requirements:

• • Underwriting Criteria: Follows underwriting guidelines of US Bank, and GSEs (FNMA and FHLMC) along with MMP guidelines.
  • Requires submission of “Certificate of Disability” completed by a health, mental health, or disability professional or other specified proof for eligibility
  • Completion of a Homebuyer Education class is mandatory

How to Apply:

• • Contact lenders with Gold- or Silver-tier status for detailed eligibility confirmation and application to the HomeAbility program.

Montgomery Homeownership Program VIII

The Montgomery Homeownership Program VIII is designed for MMP-eligible borrowers purchasing in Montgomery County, offering a first mortgage paired with a second mortgage for down payment and closing cost assistance.

Highlights:

• • Provides a second mortgage equivalent to 40% of the qualifying borrower’s income, up to a maximum of $25,000, allocated for down payment and closing costs.
  • The second mortgage has a 0% interest rate and is deferred until sale, refinance, transfer, or 30 years, whichever occurs first.
  • The funds can be applied to the borrower’s contribution for the minimum down payment as required by the insurer.

Eligibility:

• • Must meet all eligibility requirements established for the Maryland Mortgage Program
  • First-Time Homebuyer(s) or didn’t own home in last 3 years; unless buying in targeted area or veteran using exemption for the first time
  • Borrowers must meet Montgomery County’s criteria, ensuring the DPA amount doesn’t exceed 40% of the borrower’s affordable income.

Benefits:

• • Down Payment and Closing Assistance: The second lien assists with down payment or closing costs, aiding first-time homebuyers in purchasing a home.
  • Interest Rates: Published daily for the first lien; the second loan maintains a 0% interest rate.
  • Usage Exclusions: Cannot be combined with Partner Match Programs, but can be used with external assistance adhering to agency guidelines.

Requirements:

• • Homebuyer Education: Completion of an approved Homebuyer Education class is mandatory for all Maryland Mortgage Program purchase products.
  • Montgomery Homeownership Program cannot be used in conjunction with any other MMP products

How to Apply:

• • Confirm MMP eligibility and connect with an approved lender
  • Complete a Homebuyer Education Class
  • Work with a real estate agent to find the right home for you

Montgomery Employee DPA Loan

The Montgomery Employee DPA Loan, known as MEDPAL, is tailored for approved Montgomery County employees seeking to purchase homes within the county. It features a first mortgage from the Maryland Mortgage Program (MMP) paired with a $25,000 second mortgage for down payment assistance.

Highlights:

• • Offers a $25,000 second mortgage for approved Montgomery County employees purchasing homes within the county.
  • Second mortgage funds not used for down payment or closing costs are directed towards principal curtailment.
  • 0% interest on the second mortgage

Eligibility:

• • Must meet all Maryland Mortgage Program eligibility requirements.
  • First-time homebuyers that are employed full-time by specific Montgomery County departments; unless buying in targeted area or one of the borrowers is a veteran using their one-time exemption (copy of DD-214 required)
  • Homebuyer Education class completion required.
  • Borrowers must contribute 1% of the sales price using personal funds.

Benefits:

• • Down payment and closing cost assistance:
  • Interest Rates: First lien rates published daily; second lien maintains a 0% interest rate.
  • Exclusion: Cannot be combined with DPA Partner Match programs but can be used with external assistance complying with agency guidelines.

Requirements:

• • Borrower must be purchasing a property in Montgomery County.
  • Automated underwriting required; manual underwriting not permitted.
  • Adherence to all applicable overlays and requirements of MMP, US Bank, Fannie Mae, Freddie Mac, FHA/VA/RHS, and private mortgage insurers.
  • MEDPAL cannot be combined with other MMP or Montgomery County assistance products.

How to Apply:

• • Verify MMP eligibility and consult an approved lender.
  • Attend a Homebuyer Education class.
  • Seek guidance from a real estate agent to find the right property.

Massachusetts

ONE Mortgage Program

The ONE Mortgage Program, offered by over 40 lenders, is designed to be Massachusetts’ most affordable mortgage for low- and moderate-income first-time homebuyers.

Highlights:

• • Requires a minimal 3% down payment.
  • Offers low fixed interest rates.
  • Waives Private Mortgage Insurance (PMI).

Eligibility:

• • Be first-time homebuyers (no homeownership in the last three years).
  • Attend a homebuyer class to prepare for the home-buying process.
  • Meet down payment requirements (3% for condos, single-family homes, or two- family homes; 5% for three-family properties).
  • Maintain a total household income below specified limits
  • Possess total household assets below $75,000
  • Meet credit score criteria (minimum 640 for single-family homes or condos, minimum 660 for two/three-family homes).
  • Use the property as their primary residence; if they stop residing there, refinancing out of ONE Mortgage is required.

Benefits:

• • It provides a 30-year fixed-rate loan
  • Requires low down payment to as low as 3%
  • Borrowers won’t have to pay for private mortgage insurance (PMI)

Requirements:

• • Completion of a first-time homebuyer class.
  • Application submission through partner lenders (banks and credit unions).
  • Eligibility check for additional support from local down payment assistance

How to Apply:

• • Utilize the ONE Mortgage Calculator to assess affordability.
  • Enroll in a first-time homebuyer class.
  • Apply for the ONE Mortgage by contacting partner lenders.
  • Explore eligibility for extra assistance from local down payment programs.
  • Finalize the ONE Mortgage loan upon the seller’s acceptance of the offer.

Note: The program also assists Section 8 voucher holders in homeownership via the Section 8 for Homeownership Program, allowing Housing Assistance Payments (HAP) towards mortgage payments for condos or single-family homes. For more details, call the toll-free number at 1-800-752-7131 or email [email protected].

MassHousing Mortgage

The MassHousing Mortgage, offered by the Massachusetts Housing Finance Agency (MassHousing), aims to provide affordable mortgage loans along with down payment assistance to Massachusetts residents with moderate incomes. These loans are provided without taxpayer dollars.

Highlights:

• • Offers affordable fixed interest rates without hidden fees or surprises.
  • Provides down payment assistance of up to $25,000 for eligible borrowers.
  • Includes the unique mortgage insurance benefit, MI Plus, which assists borrowers in paying their mortgage for up to six months if they lose their job.

Eligibility:

• • Borrowers must meet income limits that vary by location and loan program.
  • Can be utilized for purchasing or refinancing condominiums and 1- to 4-family homes.
  • Credit score requirements: 640-700, vary depending on the type of loan, property type and loan-to-value ratio
  • Can only be used to buy property in Massachusetts
  • Home must be the primary residence

Benefits:

• • Affordable interest rates fixed for the loan duration.
  • Available for both Conventional loans, FHA financing, and for a number of different mortgage options.
  • Down Payment Assistance available*
  • Offers Mortgage Insurance with MIPlus, a unique benefit that helps our borrowers pay their mortgage for up to six months, up to $2000/month, if they lose their job.

Requirements:

• • Loan application facilitated through partnered banks, credit unions, and mortgage lenders in Massachusetts.
  • Continuous customer care provided by MassHousing without loan transfers to other companies.
  • Not-for-profit status ensures the loans are aimed at assisting first-time homebuyers rather than solely profit-making.

How to Apply for the mortgage:

• • Contact MassHousing’s Homebuying Team at 888-843-6432 or [email protected].
  • Visit the website at www.masshousing.com/homebuyers for more information.
  • Explore MassHousing-approved lenders for loan applications.
  • Completion of a MassHousing-approved homebuyer education class is required.

*Down Payment Assistance from MassHousing Mortgage:

• • Approval for a MassHousing mortgage is the first step.
  • Down payment assistance in the form of a second mortgage loan
  • Offers 10% of a home’s purchase price, up to $50,000 or $30,000, depending on the location.
  • May be used in combination with other local down payment and assistance programs.
  • Details of down payment assistance provided through a second mortgage loan.
  • Offered in the form of either an interest-free deferred payment second mortgage loan OR a 15-year amortizing second mortgage loan at a fixed 2% interest rate.

How to Apply for Down Payment Assistance:

• • Seek approval for a MassHousing mortgage.
  • Apply for down payment assistance through approved lenders.
  • Participation in MassHousing-approved homebuyer education classes is required.

**$2,500 Closing Credit for Veterans and Service Members

Members of the National Guard or Reserves, active-duty military, veteran or Gold Star Families may be eligible for a $2,500 closing cost credit!

Worcester’s ARPA Down Payment Assistance

The Worcester Down Payment Assistance program, administered by Worcester Community Housing Resources (WCHR), aims to support first-time homebuyers in Worcester by offering assistance of up to 3.5% of the purchase price, or up to $25,000. Eligible applicants must meet specific criteria to qualify, falling into at least one of four categories outlined below.

Highlights:

• • Assistance of up to 3.5 percent of the purchase price or $25,000
  • Designed for first-time homebuyers in Worcester
  • Federally funded program through HUD Community Development Block Grant
  • Helps with down payment and closing costs

Eligibility: To qualify, applicants must fall into one of the following categories:

• • Purchasing in a Qualified Census Tract (QCT) where 50 percent of households make 60 percent or less of the AMI, or has a 25 percent poverty rate.
  • Belong to disproportionately impacted households, including Black/African- American, Hispanic/Latino, and/or American Indian/Alaska Native populations.
  • Current recipients of income-restricted federal programs.
  • Have low income at or below 185 percent of the poverty line, or at or below 40 percent of the county’s AMI.

Benefits:

• • Provides financial assistance for down payment and closing costs
  • Can receive up to $25,000 in assistance
  • Helps first-time homebuyers achieve homeownership in Worcester

Requirements:

• • Must be a first-time homebuyer
  • Property must be located in the City of Worcester
  • Buyer must be preapproved for a mortgage
  • Property must be in habitable condition
  • Additional eligibility criteria may apply, as outlined in the program guidelines

How to Apply:

• • Inquire more about the program through Worcester Community Housing Resources by visiting their website at www.wchr.org or calling 508-799-0322.

City of Salem’s First-Time Homebuyer Downpayment Assistance Loan Program (FTHB)

Downpayment assistance is available for low- and moderate-income first-time homebuyers through the City of Salem’s First-Time Homebuyer Downpayment Assistance Loan Program (FTHB). The FTHB Program requires matching funds and can be used for properties in the City of Salem only.

Highlights:

• • No-interest, deferred payment loans available for first-time homebuyers.
  • Assistance can be used toward the downpayment and closing costs on a condo, single-family, or multi-family home (2-4 units).
  • Repayment of the loan is due upon sale or transfer of the property or if the occupant ceases to reside in the property as their permanent residence.

Eligibility:

• • Applicants must be first-time homebuyers as per the program’s definition.
  • Location: Applicants must be purchasing a property within the City of Salem.
  • Income: Must meet HUD-established income limits based on household size.
  • Cash assets after property purchase cannot exceed $50,000, excluding retirement accounts.

Benefits:

• • FTHB Program matches downpayment up to $1,500 and provides a $10,000 grant for a total of $11,500 assistance.
  • First-generation buyers eligible for an additional $5,000 through MAHA’s (Massachusetts Affordable Housing Alliance), STASH Program.
  • Completion of a CHAPA (Citizen’s Housing and Planning
  • Association – chapa.org) certified homebuyer counseling course is encouraged.

Requirements:

• • Property must serve as the principal residence.
  • Property purchase price must not exceed specified limits based on property type.

How to Apply:

• • Application and required documentation must be submitted a minimum of 6 weeks prior to loan closing.
  • Contact information: City of Salem Department of Planning and Community Development, 98 Washington Street, 2nd Floor, Salem, MA 01970, (978) 619-5685.

Michigan

MI Home Loan

The MI Home Loan program offers mortgage opportunities for both first-time homebuyers statewide and repeat homebuyers in targeted areas. This program operates in collaboration with participating lenders.

Highlights:

• • Low interest rate
  • Can be combined with MSHDA down payment assistance
  • Sales price limit set at $224,500.
  • Minimum credit score requirement of 640 (660 for multiple-section manufactured homes).

Eligibility:

• • First-time homebuyers should not have owned a home in the past three years; this applies statewide. Repeat homebuyers can access the program in targeted areas.
  • Household income limits are applicable and vary based on family size and property location.
  • Sales price of properties must not exceed $224,500.
  • Minimum credit scores of 640 are necessary, with a higher threshold of 660 for multiple-section manufactured homes.
  • Debt to Income (DTI) – 45% maximum
  • Single family unit, or condo approved by insurer; FHA, VA, RD, FNMA & FHLMC

Additionally, the program offers Down Payment Assistance (DPA) in the form of the MI 10K DPA Loan, providing up to $10,000 statewide. Completion of a Housing Education class is mandatory. More information available at MSHDA Housing Education Locator.

Benefits:

• • Best for low- to moderate-income earners who can’t afford typical monthly mortgage payments
  • Implements income and sales price limits for enhanced affordability.
  • Offers Down Payment Assistance through the MI 10K DPA Loan, supporting buyers with up to $10,000.

Requirements:

• • Adherence to income thresholds depending on family size and property location.
  • Compliance with the maximum sales price of $224,500.
  • Minimum credit score of 640 (or 660 for multiple-section manufactured homes) is mandatory for eligibility.
  • Completion of a Housing Education class is required for access to the MI 10K DPA Loan.

How to Apply:

• • Connect with an Experienced Participating Lender to determine eligibility.
  • Enroll in the mandatory Housing Education class for Down Payment Assistance. For further details on eligibility and application procedures, contact an Experienced Participating Lender.

MI 10K DPA Loan Program

The MI 10K DPA loan program offers a 0 percent interest loan of up to $10,000 to qualifying individuals who are eligible for a MI Home Loan and complete a homebuyer education course. The funds can be utilized for down payment, closing costs, and prepaids/escrow payments.

Highlights:

• • Provides a 0 percent interest loan of up to $10,000
  • Available to individuals qualifying for a MI Home Loan
  • Funds can be used for down payment, closing costs, and prepaids/escrow payments
  • No monthly payments required
  • Repayment only upon specific conditions

Eligibility:

• • Must qualify for a MI Home Loan
  • Completion of a homebuyer education course is mandatory

Benefits:

• • Assists homebuyers with down payment and closing costs
  • Provides access to funds without interest
  • Flexibility in using funds for various expenses related to homeownership

Requirements:

• • Qualify for a MI Home Loan
  • Complete a homebuyer education course. Use MSHDA Housing Education Locator
  • Adhere to program guidelines and requirements outlined by the Michigan State Housing Development Authority (MSHDA)
  • Repayment is required only when the mortgage term ends, the property is no longer the primary residence, or there’s a change in ownership.

How to Apply:

• • Contact one of the Experienced Participating Lender to see if you are eligible for a MSHDA mortgage.

Mortgage Credit Certificate (MCC) Federal Tax Credit

The Mortgage Credit Certificate (MCC) program offers a federal tax credit to support first-time homebuyers statewide and repeat homebuyers in specific areas, providing assistance with housing expenses.

Highlights:

• • Allows qualified homebuyers to credit 20% of their annual mortgage interest against year-end tax liability.
  • Available every year for the life of the original mortgage (up to 30 years).
  • Available to first-time homebuyers statewide and repeat homebuyers in targeted areas.
  • Household income limits and maximum sales price apply.

Eligibility:

• • Must apply and gain MCC approval before home purchase through an approved MCC Lender.
  • Qualified homebuyers can credit 20% of their annual mortgage interest paid against their year-end tax liability.
  • Available for a principal residence, single-family unit, condominium, or manufactured home.
  • Household income limits and maximum sales price apply.
  • Maximum of two acres for the property.
  • MCC fee: $400 (plus potential $100 administration fee charged by the lender).
  • Eligibility varies; see Sales/Income limits on the official website.
  • IRS recapture tax might apply if the home is sold within the first nine years after purchase.
  • Cannot be combined with certain loans like MSHDA MI Home Loan, land contracts, refinances, or rehab loans (e.g., FHA 203K).

Benefit:

• • Federal tax credit of up to 20% of the annual mortgage interest paid on mortgage.

Requirements:

• • Apply and qualify for the MCC tax credit through an approved MCC lender.
  • Property must meet eligibility criteria outlined for a principal residence, single-family unit, condominium, or manufactured home.

How to Apply:

• • Contact a MSHDA MCC participating lender at Michigan.gov/Homeownership to apply and qualify for the MCC tax credit.

Detroit Neighborhood Initiative

The Detroit Neighborhood Initiative is designed for prospective homebuyers in Detroit who complete the NACA pre-purchase home buyer program.

Highlights: Can qualify for a mortgage program that includes

• • No down payment required
  • No closing costs or fees
  • Below-market fixed interest rates (3.5% for 30 years / 2.875% for 15 years)
  • Renovation funding included in the mortgage
  • Credit score is not a factor in the mortgage process

Eligibility:

• • Prospective homebuyers in Detroit
  • Completion of the NACA pre-purchase home buyer program
  • Attendance at a Homebuyer’s Workshop and homebuyer counseling sessions

Benefits:

• • Access to affordable mortgage financing
  • Elimination of traditional barriers such as down payment and closing costs
  • Access to a mortgage loan with favorable fixed interest rates
  • Credit score not considered during the mortgage process
  • Loans available up to 110% of the home’s loan-to-value ratio for all Detroit buyers, and up to 150% for homes purchased through the Detroit Land Bank’s website

Requirements:

• • Completion of the NACA pre-purchase home buyer program
  • Attendance at a Homebuyer’s Workshop and homebuyer counseling
  • Compliance with program guidelines and requirements

How to Apply:

• • Interested homebuyers must attend a Homebuyer’s Workshop and undergo homebuyer counseling.
  • More information and details can be found at Building Detroit’s website (www.buildingdetroit.org).
  • Prospective buyers can explore available properties and apply for the mortgage program through the Detroit Land Bank’s website.

Detroit Down Payment Assistance Program

This program has experienced tremendous success, and new applications for down payment assistance funding closed on December 4, 2023. Applications already received will continue to be processed until all funds are exhausted. However, it is anticipated that this reopens this 2024! In the meantime, there are steps you can take to prepare for homeownership and access resources to help you get ready for the DPA program reopening.

Highlights:

• • Provides down payment assistance to qualifying, lower-income Detroit residents
  • Grants of up to $25,000 are available to be used towards the down payment
  • Program set to reopen this 2024

Eligibility:

• • Lower-income individuals and families residing in Detroit
  • Other specific eligibility criteria may apply (details to be provided upon program reopening)

Benefits:

• • Access to financial assistance to help with down payment costs
  • Grants do not need to be repaid

Requirements:

• • Fulfillment of program eligibility criteria (to be specified upon program reopening)
  • Completion of necessary steps outlined by the program, including attending a homebuyer education workshop, financial coaching, finding a lender, and contacting a realtor

How to Apply:

• • Stay updated on program announcements and reopening dates for the Detroit DPA Program in 2024
  • Complete necessary steps to prepare for homeownership, including registering for a homebuyer education workshop, seeking financial coaching, finding a lender, and contacting a realtor
  • Consider alternative down payment assistance programs available in the meantime, such as MSHDA’s MI 10K DPA program, which may provide assistance while waiting for the Detroit DPA Program to reopen
  • Contact Detroit Housing Resource Helpline at (866) 313-2520.

Minnesota

Minnesota Housing Start Up

The Start Up program by Minnesota aims to support first-time homebuyers in Minnesota by offering a range of loans (Conventional, FHA, VA, and USDA loans through approved mortgage lenders) with favorable terms, complemented by down payment and closing cost assistance to facilitate homeownership.

Highlights:

• • Low fixed-rate loans (conventional, FHA, VA, USDA).
  • Down payment and Closing Cost Loan options – up to $18,000 available*

Eligibility:

• • First-time homebuyer(s), or who has not had an ownership interest in a principal residence in the last 3 years
  • Compliance with Income limits, which vary by county – up to $142,800.
  • House price purchase limits of $515,200 in the 11-county Metro area and $472,030 in other counties.
  • Satisfactory credit score as per loan type.

Benefits:

• • Low fixed-rate loans
  • Down payment and closing cost assistance.
  • Options for various loan types to suit borrower preferences.

Requirements:

• • Adherence to minimum credit score criteria.
  • Property must be owner-occupied
  • Credit score and debt-to-income (DTI) requirements, vary per loan product
  • At least ONE borrower must complete an approved homebuyer education course
  • Compliance with income and purchase price limits.
  • Lesser of $1,000 or 1% of the purchase price if receiving a Minnesota Housing down payment and closing cost loan*

How to Apply:

• • Find and connect with approved mortgage lenders partnered with the agency. The process involves verifying eligibility based on income, credit, and property criteria
• The down payment and closing cost loan program options with the Start Up Program are:
  • Deferred Payment Loan (DPL) – up to $16,500
  • Deferred Payment Loan Plus (DPL+) – up to $18,000
  • Monthly Payment Loan (MPL) – up to $18,000

Minnesota Housing Step Up

If you’re not a first-time homebuyer – or you’re a first-time homebuyer who exceeds the income or purchase limits for Start Up – the Step Up program might be a great option.

Highlights:

• • Repeat borrowers and first-time homebuyers
  • Provides low-interest home mortgage and refinance loans to low- and moderate- income borrowers throughout Minnesota
  • Downpayment and Closing Cost Loan options available, with up to $18,000 assistance.*
  • Minimum credit score required.
  • Owner-occupancy prerequisite.
  • Homebuyer education required if all borrowers are first-time buyers.

Eligibility:

• • Repeat borrowers and first-time homebuyers (if not eligible for Start Up)
  • If first-time homebuyers, must check the first-time homebuyer box in the commitment system
  • Income limits extend up to $185,700 based on county.
  • House price limits vary, reaching $659,550 in the 11-county Metro area and $637,950 elsewhere.
  • Satisfactory credit score as per loan type.
  • Fulfillment of homebuyer education requirement (if applicable).

Benefits:

• • Low-interest home purchase or refinance loans.
  • Have a fixed interest rate
  • Access to down payment and closing cost loans*
  • Various property types eligible for financing.

Requirements:

• • Adherence to income and purchase price limits.
  • Minimum credit score, varies per loan type
  • Owner-occupancy requirement
  • If ALL borrowers are first time buyers, at least ONE borrower must complete an approved homebuyer education course before closing on the home
  • Lesser of $1,000 or 1% of the purchase price if receiving a Minnesota Housing down payment and closing cost loan*

How to Apply:

• • Find and connect with approved mortgage lenders partnered with the agency.

*The down payment and closing cost loan program available with the Step Up Program is:

• • Monthly Payment Loan (MPL) – up to $18,000

Smart6

Mississippi

Mississippi Home Corporation’s (MHC) Smart6 Mortgage Program is designed to assist individuals in purchasing their first home or transitioning to a new one. This program offers competitive interest rates, providing down payment assistance as a second mortgage through participating lenders.

Highlights:

• • 30-year fixed-rate first mortgage through participating lenders
  • Options include FHA insured, VA, Rural Development, and Fannie Mae/Freddie Mac Loans.
  • $6,000 down payment or closing cost at 0% interest (repayable to MHC at Due-On- Sale, Refinance, Non-Owner Occupied, or 1st Mortgage Paid in Full).

Eligibility:

• • Credit score eligibility based on servicer guidelines.
  • Now or existing home located in Mississippi
  • Household annual income must not exceed $122,000 (unless used with MCC)
  • Purchase price limit aligned with loan agency guidelines (unless used with MCC).

Benefits:

• • Competitive interest rates updated weekly.
  • Access to down payment assistance: $6,000 with 0% interest (as a second mortgage)
  • No liquid asset limit.
  • Can be used with the Mortgage Credit Certificate (MCC) program (subject to IRS regulations and a $300 non-refundable reservation fee).

Requirements:

• • Must be a legal resident of the United States
  • Intention to use the property as the primary residence.
  • Creditworthiness evaluated based on servicer guidelines.
  • Single-family homes, townhouses, condominiums, and possibly manufactured homes based on servicer overlays.
  • No specific first-time homebuyer requirements (unless used with MCC).

How to Apply:

• • Take a homebuyer education class
  • Find a participating lender or contact 601-718-4642 to acquire further information about the Smart6 program and its eligibility requirements, application process, and participation details.

Mortgage Revenue Bond 7 (MRB7)

The Mortgage Revenue Bond 7 program, facilitated by the Mississippi Home Corporation (MHC), aims to aid potential homeowners by offering competitive mortgage rates using proceeds from the sale of Mortgage Revenue Bonds. This initiative also provides $7,000 to assist borrowers with upfront mortgage-related costs.

Highlights:

• • Offers a 30-year fixed-rate mortgage (rate subject to change).
  • Eligible for FHA insured, VA, Rural Development, and Fannie Mae/Freddie Mac Loans.
  • No set liquid asset limit.
  • Provides a $7,000 deferred 10-year second loan at 0% interest (forgivable after 10 years)

Eligibility:

• • First-time homebuyers or those who haven’t owned a principal residence in the past 3 years.
  • Legal resident of the United States.
  • Certain areas designated as “Target Areas” and veterans exempt from the first-time homebuyer rule.
  • Must meet credit requirements set by FHA, VA, Rural Development, Freddie Mac, and Fannie Mae products.
  • Household income within specific county guidelines.

Benefits to Homebuyers:

• • Access to competitive 30-year fixed-rate mortgage options.
  • Eligibility for various loan types.
  • Assistance with upfront costs through a $7,000 deferred 10-year second loan at 0% interest.

Requirements:

• • Property must be owner-occupied and function as the primary residence.
  • Acceptable property types include single-family detached or attached homes; fee simple townhomes; FHA, VA, or Conventional Approved condominiums; and permanently affixed manufactured homes meeting specified requirements.
  • Home cost must align with the maximum permissible acquisition cost based on county designation.
  • Must meet eligibility requirements.

How to Apply:

• • MHC requires a homebuyer education class
  • Find a participating lender and work with a real estate professional

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) reduces the borrower’s federal income tax burden, enabling higher qualification for a mortgage. This program grants a tax credit equivalent to 40% of the annual interest paid on a mortgage loan, directly reducing federal tax liability. However, the credit cannot exceed $2,000 annually and is subject to federal tax law and MHC guidelines on income and home purchase price limits.

Highlights:

• • Offers a tax credit equal to 40% of annual interest paid on the mortgage.
  • Allows borrowers to claim itemized federal income tax deductions for mortgage interest.
  • Immediate benefit possible by filing a revised W-4 withholding form with employer or through annual tax returns.

Eligibility:

• • First-time homebuyers or those who haven’t owned a principal residence in the past 3 years.
  • “Target Areas” in the state exempt some buyers from the first-time homebuyer rule.
  • Household income must adhere to specified income limits.

Benefits:

• • Available with various loan types: Fannie Mae or Freddie Mac conventional, fixed- rate, adjustable rate, FHA, VA, and RD financing.
  • Can be combined with MHC’s Smart6 program at a 30-year fixed rate.
  • Flexibility in terms of the loan’s duration: 15, 20, 25, or 30 years.

Requirements:

• • Owner-occupied property serving as the primary residence.
  • Single-family residence or HUD-approved manufactured homes with land ownership/purchase.
  • Property acquisition cost must align with county-set limits.
  • $300 non-refundable reservation fee to participate in the program
  • Documents required: ales contract with legal property description, past three years’ federal income tax returns, and completion certificate of a homebuyer education course.

How to Apply:

• • Individuals seeking participation or more information can apply through participating lenders
  • Required documentation and eligibility criteria are available through lender consultation or on MHC’s official platform.

Housing Assistance for Teachers (HAT)

The Housing Assistance for Teachers (HAT) program by MHC provides eligible teachers with a grant of up to $6,000 for down payment and closing costs. This grant is accessible to teachers working in areas classified by the state as ‘critical shortage areas.

Highlights:

• • Supports qualified teachers with homeownership funding.
  • Requires applicants to serve as a teacher in the district for a minimum of three years from the start of the school year.

Eligibility:

• • Applicants committed to teaching in the district for three years.
  • Applicants must meet credit eligibility requirements of FHA, VA, RD Guaranteed, Fannie Mae, or Freddie Mac.

Benefits:

• • Grant assistance of up to $6,000, forgiven if the teacher fulfills the required three-year teaching obligation in a critical shortage district.
  • Covering borrower funds necessary to close on a home, including down payment, closing costs, prepaid expenses, and Mortgage Insurance, if applicable.

Requirements:

• • 25 or 30-year fixed loan rate, unless using with another MHC Program
  • Mortgage Insurance required based on the loan-to-value ratio.
  • The minimum down payment from the homebuyer(s) must be 1% of the sales price, plus one month’s reserves.
  • Residential property must be located within the county designated by the MS Department of Education as a critical shortage school district.

How to Apply:

• • Interested teachers should contact participating lenders or visit the Mississippi Department of Education for detailed application procedures and requirements.

Missouri

MHDC First Place Loan Program

The MHDC First Place Loan Program in Missouri offers below-market interest rates to potential first- time homebuyers and qualified Veterans. The program also offers cash assistance options for down payments and closing costs.

Highlights:

• • Cash assistance for down payment and closing costs for homebuyers with limited savings.
  • Loans available for any eligible property in Missouri.
  • No minimum down payment or loan amounts.

Eligibility:

• • First-time homebuyers or qualified Veterans.
  • First-Time Homebuyer requirement waived for targeted areas
  • Minimum credit score of 640 (subject to change)
  • Loans are subject to federal compliance requirements and may have minimum credit scores greater than 640—lenders reserve the right to be more restrictive
  • Debt-to-income ratio of 45% or less
  • Debt-to-income ratios up to 50% or less for FHA and Government Sponsored Entities (minimum credit score of 680 with these circumstances)
  • Income and purchase limits apply

Benefits:

• • Lower interest rates compared to regular market rates.
  • Eligible for FHA, VA, USDA-Rural Development, and Conventional loans.
  • Option for a forgivable second loan up to 4% of the loan amount for down payment and closing costs,
  • OR use First Place Program without down payment assistance for lower rates, and lower monthly payments

Requirements:

• • Loans available for FHA, VA, USDA-Rural Development, FNMA HFA Preferred Conventional, or Freddie Mac HFA Advantage Conventional.
  • Fixed interest rates for the loan term.
  • Income and Purchase Price Limits apply
  • Homebuyer must occupy the home within 60 days of closing as a primary residence.

How to Apply:

• • Apply through Certified Lenders authorized to offer the program.
  • Funds are allocated on a first-come, first-serve basis.

MHDC Next Step Program

The MHDC Next Step Program gives first-time homebuyers and repeat homebuyers outside the First Place income limits the edge they need to purchase a home

Highlights:

• • Offers cash assistance for down payments and closing costs
  • Loans provided by Certified Lenders for eligible Missouri properties
  • No minimum down payment or loan amounts

Eligibility:

• • Assists first-time and repeat homebuyers outside ‘First Place’ income limits
  • Minimum credit score of 640 (subject to change)
  • Debt-to-income ratio of 45% or less (up to 50% for specific loan types)
  • Total gross annual household income within established limits
  • Available for FHA, VA, USDA-Rural Development, and Conventional loans

Benefits:

• • Forgivable second loan up to 4% of the total mortgage amount for down payment and closing costs*
  • Options for lower interest rates without down payment assistance**
  • Eligible first-time homebuyers may pair it with Mortgage Credit Certificates for additional savings
  • Can be paired with Mortgage Credit Certificate Program

Requirements:

• • Loans for initial purchase, excluding refinanced mortgages
  • Income and Purchase Limits apply
  • Homebuyer must occupy the home within 60 days of closing as a primary residence

How to Apply:

• • Contact a Certified Lender to begin the loan application process
  • Funds are allocated on a first-come, first-serve basis.

Additional Information:

*The program offers a 100% forgivable second loan of up to 4% of the total mortgage amount for down payment and closing costs

**It also provides options to skip down payment assistance for lower rates and monthly payments, potentially coupled with a Mortgage Credit Certificate for further savings

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program in Missouri enables first-time homebuyers to claim a tax credit on their federal returns, effectively reducing their borrowing costs by offsetting a portion of the mortgage interest paid within a tax year. Paired with other lender loans or MHDC’s Next Step Loan Program, the MCC acts as a significant cost-saving tool.

Highlights:

• • • Offers tax credits up to 45% of the mortgage interest paid or a maximum of

$2,000.*

• • • Provides potential savings for first-time homebuyers via tax credit claims.
    • Coupling with Next Step Loan Program enhances cost-saving options.

Eligibility:

• • • Available for initial purchase loans, FHA, VA, USDA-Rural Development, and specific conventional loans.
    • Eligible borrowers must meet credit score, debt-to-income ratio, and income criteria.
    • Applicants must qualify as first-time homebuyers or qualified Veterans**.

Benefits:

• • • MCC credits at rates of 25%, 35%, or 45% or up to a maximum of $2,000.
    • Option to pair with Next Step Program for additional savings over time.

Requirements:

• • • Fixed interest rates for the loan duration.
    • Occupancy of the home within 60 days of closing as the primary residence.

How to Apply:

• • • Contact a Certified Lender to get more information and initiate the loan application process.

*Additional Information:

• • • Pairing an MCC with the Next Step Program can yield up to $2,000 annually in tax credit savings.
    • MCC’s credits vary between 25%, 35%, or 45% for different program options within the Next Step Program, enhancing the potential for savings.

**Exceptions:

• • Homebuyers do not have to be first-time buyers if they purchase homes in federally-targeted census tracks. Consult your lender for specific locations of target areas.
  • Qualified Veterans do not have to be first-time homebuyers. A qualified Veteran is any Veteran who served active duty and who applies for financing within 25 years after leaving active service.
  • First-time homebuyers are defined as those persons who have not owned a home or had an ownership interest in a primary residence for the past three years. Please direct all questions about your loan application to the Certified Lender.

Montana

Montana Housing Regular Bond Program

Montana Housing’s main mortgage program for first-time homebuyers is the Regular Bond Program, which offers a low interest rate on a 30-year fixed-rate loan.

Highlights:

• • 30-year fixed-rate loan with a low interest rate.
  • For first-time homebuyers with income and purchase price below specified limits.

Eligibility:

• • Must first qualify for an FHA, VA, RD, or HUD-184 first mortgage loan
  • Annual household income must not exceed Montana Housing limits, varying based on household size and home location.
  • Home can be located anywhere in Montana
  • Property types eligible include single-family homes, condos, or manufactured homes.

Benefits:

• • Low-interest rate over a 30-year term.
  • Inclusive of single-family homes, condos, and manufactured homes.

Requirements:

• • Preliminary qualification for an FHA, VA, RD, or HUD-184 first mortgage loan is a prerequisite for Montana Housing programs.
  • Completion of a Homebuyer Education course may be required

How to Apply:

• • Contact a participating lender to initiate the loan application process. Lenders conduct the credit analysis and qualify the borrower and property for Montana Housing programs.

Set-aside Loan Program

Montana Housing’s Set-aside Loan Program is crafted to aid borrowers with an average income of 80% of the median, offering down payment assistance from Montana Board of Housing-approved sources.

Highlights:

• • Addresses the “affordability gap” between what buyers can afford and the actual home costs in their area.
  • Partners with cities, counties, non-profits, and resources for homebuyer assistance.
  • Participating lenders qualify homebuyers for a Montana Housing loan covering most of the purchase price.
  • Non-profits provide the balance, ranging from $1,500 to $45,000 based on location and buyer needs.

Eligibility:

• • Borrowers earning approximately 80% of the median income.
  • Must face challenges in saving for a down payment or paying closing costs.
  • Must qualify for a Regular Bond Program loan.

Benefits:

• • Lower interest rate compared to Regular Bond Program.
  • Bridging the affordability gap for homebuyers.
  • Collaborative effort with cities, counties, non-profits, and various resources.

Requirements:

• • Must qualify for a Regular Bond Program loan.
  • Set-aside interest rate is lower.
  • Homebuyer Education is mandatory.

Approved Set-aside Programs:

• NeighborWorks Montana 2nd Mortgage
• CAP NWMT Kalispell Community Land Trust
• Missoula Combined HRDC XI HOME Funds
• Bozeman District IX HOME Funds
• Home$tart Program (FHLB)
• HUD Section 184 Home Loan
• Sparrow Homes
• Dream Makers Matching Grant Funds (Veterans Only)
• City of Billings First Time Homebuyer Program
• New Construction Lot Refinance Program
• Montana Street Homes CLT

How to Apply:

• • Prospective homebuyers can apply by working with a participating lender for a Montana Housing loan and coordinating with approved non-profits for down payment assistance.

Montana Housing 80% Combined Program

The 80% Combined Program provides homebuyers who are eligible for Montana Housing financing with an alternative to an FHA-insured loan, eliminating the need for mortgage insurance. The 80% Combined Program is a 30-year first-position mortgage loan at 80% Loan-To-Value (LTV) that is paired with a second loan at 20% Loan-To-Value (LTV) offered by a partnering non-profit.

Highlights:

• • Each Montana Board of Housing (MBOH) mortgage loan shall be made at 80% LTV or less, be in first lien position and accompanied by funding from a non-profit for at least 20% of the purchase price.

Eligibility:

• • Minimum $1,000 personal contribution.
  • Credit score of 640.
  • Front-end ratio (29%) and back-end (DTI) ratio (41%) limits.
  • Mandatory homebuyer education
  • Adherence to Regular Bond Program income and purchase price limits.

Benefits:

• • Alternative to FHA-insured loan, eliminating the need for mortgage insurance.
  • 30-year first-position mortgage at 80% LTV paired with a 20% LTV second loan from a non-profit.

Requirements:

• • Must meet the requirements set by the MBOH 80% Combined Program and by the non-profit providing the secondary financing.
  • Credit requirements: 640 credit score, ratio limits (32/45).
  • 1% contribution from own funds (minimum $1,000).
  • Total loan-to-value not exceeding 105%.
  • Properties must meet FHA appraisal standards.
  • Residence must be occupied as the owner’s principal residence.
  • Maximum household income limits vary by county.
  • Homebuyers must be first-time unless in a Targeted Area.
  • All borrowers must complete homebuyer education.
  • Mortgagor can have only one MBOH Loan at a time and Reservations for mortgage funds are on a first-come, first-serve basis

How to Apply:

• • Contact a participating lender to initiate the loan application process.

Veterans’ Home Loan Mortgage Program

The Montana Veterans’ Home Loan Mortgage Program aims to provide first mortgage funds to Montana residents serving or having served in the Montana National Guard or in the national armed forces and reserves.

Highlights:

• • Fixed-rate, 30-year mortgage at 1% lower than FNMA or Montana Housing’s interest rate
  • Funded from the principal of the Montana Coal Tax Trust Fund
  • No income, asset, or purchase price limits, but a maximum loan limit applies
  • Revolving program with limited funds
  • Funds are available on a loan-by-loan, first-come, first-served basis

Eligibility:

• • Honorably discharged or eligible veterans
  • True first-time homebuyer (never owned a primary residence)
  • Montana resident
  • Completion of a First Time Homebuyer class approved by Montana Housing
  • Minimum $2,500 borrower investment (out of pocket)
  • Current maximum loan amount is $457,117 (Effective 5/23/23)
  • Condos are NOT allowed in the program

Benefits:

• • Fixed-rate mortgage at a 1% lower interest rate
  • No income, asset, or purchase price limits
  • Revolving program offering funds to eligible veterans

Requirements:

• • Completion of a First Time Homebuyer class
  • Minimum $2,500 borrower investment (out of pocket)
  • Property must be the borrower’s primary residence and borrower take occupancy within 60 days of loan closing

How to Apply:

• • Initiate the application process through Montana Housing participating lenders.

Down Payment Assistance Programs

Montana Housing offers two down payment and closing-cost assistance programs that reduce the amount of up-front cash the borrower needs to purchase a home. Borrowers must qualify for a Regular Bond Program loan and additional requirements may apply.

Bond Advantage Down Payment Assistance Program:

• • Can be used for down payment and closing cost assistance
  • Available for up to 5% of sales price, maximum $15,000
  • Requires a Montana Housing 30-year first mortgage, both loans have the same fixed rate
  • 15-year amortizing loan with low monthly payments
  • Minimum credit score of 620 for all borrowers
  • Homebuyer Education is required
  • Borrowers must provide a minimum of $1,000 cash investment in the purchase. Borrower’s contribution can be gifted.

MBOH Plus 0% Deferred Down Payment Assistance Program:

• • Can be used for down payment and closing cost assistance
  • Available for up to 5% of sales price, maximum $15,000
  • 0% second loan, no monthly payments
  • Due upon transfer/sale of property or refinance/payoff/of first loan
  • Requires a Montana Housing 30-year first mortgage fixed rate loan
  • Household income limit $80,000 for 1-2 ppl and $90,000 for 3+ ppl
  • Minimum credit score of 620, maximum Debt-to-Income (DTI) of 45% for all borrowers
  • Homebuyer Education is required
  • Borrowers must provide a minimum of $1,000 cash investment in the purchase. Borrower’s contribution can be gifted.