Too early to speculate until more details come out
but in the 25k available to first time homebuyers...it could be a program similar to other countries that allows people to access that amount from their RRSPs or TFSAS ( or 401k in America) without taxes or penalty for a period of up to 10-25 years as long as it goes towards the down payment. ( in Canada you can access up to $40k)
For those without access to those funds....Maybe it will be grant program, forgivable loan or a program in a collaboration with NACA
www.naca.com/purchase/ - their first time homebuyer programs have workshops and diligent education and requirements throughout the buying process but will ultimately pay off at the end of the process.
she clearly understands that real estate wealth is something that we've largely been robbed of in our community and l
she understands that's an area that needs to be rectified. I feel she was behind the PAVE act the administration launched 2 years ago to eliminate racial bias in home appraisals.
The benefits for families etc. seems to be in line with the "LIFT Act" she sponsored in California when she was Senator providing families making up to $100,000 a $6,000 annual credit, or $500 per month. Singles making up to $50k 3k per year or $250 per month...
basically more "Trickle up economics" than the "Trickle down" economics of Bush, Friedman, Reaganomics etc. that primarily benefited the wealthy.
Yeah similar to what some states have for first time home buyer programs......I am thinking it will be centered around those programs already in place, but at the federal level.
Department of Housing and Community Development
Department of Housing and Community Development
https://www.bgol.us/forum/javascript:void(0)
Home Purchase Assistance Program
The Home Purchase Assistance (HPAP) program provides interest-free loans and closing cost assistance to qualified applicants to purchase single family houses, condominiums, or cooperative units in the District. The loan amount is based on a combination of factors, including income, household size, and the amount of assets that each applicant must commit toward a property’s purchase. The loan is subordinate to a private first trust mortgage, and HPAP does not accept seller-backed mortgage financing.
HPAP Funds Availability
This dashboard shares the amount of Home Purchase Assistance Program (HPAP) funds that are available for Fiscal Year 2024 (FY24) which begins on October 1, 2023.
Update: As of January 11, 2024, all available funds for the Home Purchase Assistance Program (HPAP) have been reserved. No more reservations will be accepted at this time. Further updates for the program will be forthcoming and will be posted on this page.
If you have not yet applied for HPAP or received a Notice of Eligibility, or have any other questions, please contact your
Housing Counselor or visit
Eligibility/How to Apply for more information.
Eligible applicants can receive a maximum of $22,000 in gap financing assistance and an additional $4,000 in closing cost assistance. The HPAP loan for borrowers with incomes below 80 percent of the median family income (MFI) is deferred until the property is sold, refinanced to take out equity, or is no longer their primary residence. Moderate-income borrowers who earn between 80 percent and 110 percent MFI will have payments deferred for five years with a 40 year principal-only repayment period.
The maximum first trust loan amount cannot exceed the Federal Housing Administration’s (FHA) conventional conforming loan limit.
This one is specific to Montogomery County in Maryland....Maryland has several programs, but this is specific to Mo County which is adjacent to DC...
I know a few people who used this to buy their first home
Montgomery County Specialty Products
The
Montgomery Homeownership Program VIII and the
Montgomery Employee Down Payment Assistance Loan (MEDPAL) are initiatives of the Maryland Mortgage Program (MMP) in partnership with Montgomery County, providing down payment and closing cost assistance loans to help eligible homebuyers purchasing in Montgomery County. Talk to your loan officer to see if you're eligible!
Montgomery Homeownership Program
- May be used by any MMP-eligible borrower purchasing in Montgomery County.
- MMP first mortgage comes with a second mortgage equal to 40% of the qualifying borrower income with a maximum amount of $25,000 for down payment and closing cost assistance. Any funds not needed for down payment or closing costs will be applied to principal curtailment (no cash-out).
- Second mortgage has a zero percent interest rate and repayment is deferred until sale, refinance, transfer, or 30 years, whichever happens first.
- The minimum down payment is set by the insurer, and the second mortgage funds can be used for the borrower contribution.
MHP Fact Sheet
Montgomery Employee DPA Loan
- May be used by approved Montgomery County employees (see fact sheet) purchasing in Montgomery County.
- MMP first mortgage comes with a second mortgage of $25,000. Any funds not needed for down payment or closing costs will be applied to principal curtailment.
- Second mortgage has a zero percent interest rate. It can be re-subordinated in the event of a non-cash out refinance (must be repaid in the event of a cash-out refinance) and must be repaid if the property is sold or transferred. At the end of 30 years, the loan is forgiven if not already paid off.
- The minimum down payment is set by the insurer, and the borrower must provide at least 1% of the purchase price with their own funds in addition to the second mortgage.
- MEDPAL Fact Sheet
Getting Started
If you're ready to move forward on your home purchase:
Talk to a Lender - Your lender will confirm your eligibility for the Montgomery products and the Maryland Mortgage Program overall and will make sure you meet all the requirements, such as attending the right Homebuyer Education Class. Lenders will review factors such as your income, credit history and employment situation when considering your application.
Complete a Homebuyer Education Class - Completing a Homebuyer Education class prepares you to make the right decisions when purchasing your home. Homebuyer Education classes are available throughout Maryland and online. Homebuyer education must be completed by all borrowers.
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