Maryland Mortgage Program Student Loans: A Path to Homeownership with Debt

Maryland's mortgage program offers a unique solution for individuals struggling with student loan debt. The program allows borrowers to combine their student loans with their mortgage, potentially reducing their monthly payments.

For example, if a borrower has $30,000 in student loans and a $200,000 mortgage, they may be able to combine these debts into a single loan with a lower monthly payment. This can be a huge relief for those feeling overwhelmed by their debt.

By taking advantage of this program, borrowers can free up more money in their budget for other expenses, such as savings, investments, or even paying off other debts.

The Maryland SmartBuy program is designed to help homebuyers eliminate student debt. Up to 15% of the home purchase price, or $50,000, whichever is lower, can be used to pay off outstanding student loans.

The program provides a 0% interest loan that is forgivable over 5 years. This means that borrowers don't have to make any payments on the loan, and it will be completely paid off after 5 years.

To be eligible for the program, borrowers must have at least $1,000 of student debt and pay off the loan at the time of the home purchase. They must also take a Homebuyer Education Class approved by HUD or NIS.

Here are the key eligibility requirements:

• Have at least $1,000 of student debt (and up to 15% of purchase price)

• Pay off student loan at the time of the home purchase

• Take a Homebuyer Education Class approved by HUD or NIS

• Contribute at least 5% of the sales price of your own money to your home purchase

• Live in the home as primary residence within 60 days of closing

• Do not own any other property at the time of closing

• Be a first-time homebuyer, except for those living in Baltimore City

• Maximum combined Loan-to-Value of 105%

• 720 middle credit score

Borrowers can also take advantage of additional down payment and closing cost assistance loans, which can help make homeownership more affordable.

The Maryland SmartBuy 3.0 program is designed for eligible individuals who want to purchase a home despite having student debt.

If you're eligible, you may want to consider this program, as it makes buying a home possible with the help of the Maryland SmartBuy 3.0 Program.

Homeownership comes with major benefits, which are worth considering.

The program is made possible by the Maryland SmartBuy 3.0 Program, which can make buying a home less daunting despite student debt.

The Maryland Mortgage Program has made significant strides in helping homebuyers overcome the hurdle of student loan debt. The SmartBuy initiative, launched more than five years ago, was the first government mortgage program in the nation to specifically address student loan debt.

To date, the program has provided over $5.1 billion in mortgages, $121.7 million in down payment assistance, and $25 million in student debt relief. The goal is to make homeownership more affordable for Marylanders.

Maryland Department of Housing and Community Development Secretary Kenneth C. Holt has emphasized the importance of tackling student debt as a significant barrier for many potential homeowners. The state is always looking for innovative ways to help make homeownership affordable.

Under the SmartBuy 3.0 product, buyers can receive either 15% of their home purchase price or $50,000 in student debt payoff assistance—whichever is lower. This is an increase from the previous limit of $30,000.

For lower-income borrowers, there is an additional down payment and closing cost loan option. Those with income at or below 50% of the average median income can get a 6% down payment and closing cost loan from the state.

Here are the key features of the SmartBuy 3.0 product: