Hogan announces increased student loan and homebuyer assistance through SmartBuy initiative


The Maryland Mortgage Program helps homebuyers with student loan debt by offering a second loan to clear that debt.

Gov. Larry Hogan, building on the SmartBuy initiative for Maryland home buyers, announced increases in student debt relief and home loan options for residents buying homes in the state. .

The expanded funds will provide up to $50,000 in student debt relief and additional loans for down payment and closing costs for low-income borrowers.

Hogan said he expects this expansion to help more families across the state.

“As the country continues to face an inflation crisis, we are once again taking action to provide relief to the people of Maryland,” Hogan said in a statement. “Our SmartBuy initiative – the first of its kind in the country – has established a national model for breaking down persistent barriers to homeownership and financial security, and this expansion will allow us to help even more families.”

Under the Maryland Mortgage Program, up to 95% of the purchase price of the property should be financed by a conventional 30-year Fannie Mae or Freddie Mac mortgage. The buyer would need to have a 5% deposit.

To eliminate student loan debt, the borrower would take out a second loan for five years. The loan could represent up to 15% of the purchase price of the property, but not more than $50,000. The loan would be used to erase the student loan. Previously, the program eliminated up to $30,000.

Additionally, those with an income of 50% or less of the average median income can get a 6% down payment and a state closing cost loan – those who want a $6,000 or 4% down payment and a closing cost loan will have access to this option.

Maryland Department of Housing and Community Development Secretary Kenneth C. Holt said the five-year-old program specifically addresses student debt as a “significant barrier for many potential homeowners.” .

“As interest rates rise and demand pushes up housing prices, the state of Maryland is always looking for innovative ways to help make homeownership affordable,” Holt said.

The program provided approximately $5.1 billion in mortgage relief, $121.7 million in down payments and $25 million in debt relief.

Like OMCP on Facebook and follow OMCP on Twitter and Instagram to start a conversation about this article and others.

Get the latest news and daily headlines delivered to your inbox by signing up here.

© 2022 OMCP. All rights reserved. This website is not intended for users located in the European Economic Area.


Comments are closed.