Section 4-303 – Purpose of Program
The purpose of the Program is to provide financing for down payment and settlement expenses to enable eligible homebuyers to purchase homes.
Section 4-304 – Powers and Duties of the Department
(a) The Department may: (1) charge an application fee or other fee to a Program loan applicant or lender; (2) purchase or make commitments to purchase Program loans made by mortgage lenders; (3) make contracts with third parties to make or service mortgage Program loans made for the Department; (4) acquire any property that secures a Program loan under this […]
Section 4-305 – Eligible Homebuyer
An individual qualifies as an eligible homebuyer if the individual: (1) will purchase and occupy a single-unit principal residence and has household income not exceeding upper limits that the Secretary establishes; or (2) will purchase and occupy a residential building with no more than four units and agrees to rent all units other than the owner’s unit […]
Section 4-306 – Operation of Program
The Program shall be operated with money in the Fund.
Section 4-307 – Program Loans
(a) Proceeds of a Program loan shall be used only to make a down payment or pay settlement expenses for an eligible homebuyer to purchase a personal residence. (b) A Program loan shall be secured by a mortgage lien that: (1) may be subordinate to other mortgage liens; and (2) may include terms, including deferred payment of principal and […]
Section 4-308 – Homebuyer Education
(a) Subject to subsection (b) of this section, a recipient of a Program loan shall complete homebuyer education that meets the requirements of the Department. (b) The Department’s homebuyer education requirements shall: (1) allow a Program loan recipient to use the online homebuyer education for a HUD–approved product and contact a HUD–approved counseling agency to receive a certificate; […]
Section 4-309 – False Statements or Reports
(a) (1) A person may not knowingly make or cause to be made a false statement or report in a document required to be submitted to the Department under an agreement relating to a Program loan. (2) A loan applicant may not knowingly make or cause to be made any false statement or report to influence an action […]
Section 4-301 – Definitions
(a) In this subtitle the following words have the meanings indicated. (b) “Eligible homebuyer” means an individual who meets the qualifications under § 4-305 of this subtitle. (c) “Fund” means the Homeownership Programs Fund. (d) (1) “Homebuyer education” means instruction in preparing for homeownership, shopping for a home, getting a mortgage loan, loan closing, and life as a homeowner. (2) “Homebuyer […]
Section 4-302 – Established
There is a Down Payment and Settlement Expense Loan Program.