The 1st Time Advantage Loans are tailored to offer Maryland’s homebuyers not only a low MMP interest rate but also down payment and closing cost assistance (DPA) loans. These loans come with a 0% interest rate and a 30-year term, with repayment deferred for the life of the first mortgage. The unique features of each loan option are designed to cater to the varying financial needs of prospective homeowners.

1st Time Advantage 6000:

A robust $6,000 loan aimed at covering down payment and closing costs, bearing zero interest and requiring no payments until the first mortgage concludes.

1st Time Advantage 3% Loan:

Offers a DPA loan equal to 3% of the first mortgage, also at zero interest, enhancing affordability with deferred repayment.

1st Time Advantage 4% & 5% Loans:

These options increase the DPA to 4% and 5% of the first mortgage respectively, catering to varying financial needs with the same beneficial zero interest and deferred repayment terms.

1st Time Advantage HomeStart:

Aimed at homebuyers with incomes at or below 50% of the Area Median Income (AMI). Offers a 0% interest, 30-year deferred down payment assistance (DPA) loan equal to 6% of the total MMP loan amount- while still offering competitive 30-year fixed interest rates.

Eligible Borrowers:

The loans are available to MMP-eligible first-time homebuyers who meet income, credit score, and purchase price limits. Borrowers may not own any real property at the time of closing to qualify.

Homebuyer Education:

To ensure informed decisions, all borrowers are required to complete a homebuyer education class approved by HUD, Fannie Mae, or Freddie Mac before closing their MMP loan.

1. Targeted Area Purchases:

Individuals purchasing homes in designated “targeted areas” qualify for the 1st Time Advantage Loans regardless of their first-time homebuyer status. Areas to include Baltimore City, or in Allegany, Caroline, Dorchester, Garrett, Kent, or Somerset County. This exception encourages investment in these areas, promoting community development and revitalization. For detailed information on targeted areas, interested buyers can reach out to our expert team.

2. Lapsed Homeownership:

Recognizing the diverse paths of potential homeowners, MMP allows individuals who have not owned their principal residence in more than three years to access these loan programs. This exception acknowledges that financial and life circumstances change, providing a re-entry pathway into homeownership for those who previously owned a home.

3. Honorably Discharged Veterans:

In honor of their service, honorably discharged veterans who have not previously used the first-time homebuyer exemption are also eligible. This exception aligns with the Heroes Earnings Assistance and Relief Tax Act of 2008, as amended. Veterans must provide a DD-214 form to document their status and complete a Veteran First Time Homebuyer Exemption form.

The MMP’s 1st Time Advantage Loans, with their thoughtful exceptions, underscore Maryland’s dedication to making homeownership achievable for a broad spectrum of residents. Whether you’re a first-time buyer, someone looking to re-enter the housing market, or a veteran, these programs are designed to provide the financial assistance and support needed to purchase a home.

For more information on eligibility, targeted areas, and how to apply, potential homebuyers are encouraged to consult with Vellum Mortgage experts.