The State of Maryland has just moved up to the most awesome state with the announcement of their new Maryland SmartBuy program. The program will “Pay off student debt AND get highly attractive financing and closing cost assistance to purchase move-in-ready homes made available through the Department of Housing and Community Development.”
Now the selection of homes is limited to those owned by the Maryland Department of Housing and Community Development. But how incredible is that offer?
Under the program the State of Maryland will give up to 15% of the home purchase price to payoff student loans.
This program allows residents to shed student loan debt to better qualify for home purchase.
Details on this program are available here.
The student loans are paid off but forgiven over time. The State will place a lien on the property at 0% interest for the amount that was used to pay off the student loans. On each anniversary of the loan, 20% of the student loan lien against the property will be forgiven. At the end of five-years in the property the entire eligible student loan debt forgiveness will be achieved.
The Maryland sales pitch to consumers is, “The Maryland SmartBuy initiative can help qualified applicants with eligible student debt purchase a home. The program offers highly attractive financing and closing cost assistance for move-in-ready homes, including loan forgiveness of up to 15% of the purchase price to eliminate student debt. Maryland SmartBuy mortgage loans are provided through the department’s Maryland Mortgage program, and come with the security that only the state’s flagship program can provide.”
The program can be a real benefit for some Maryland residents and while it does have limitations it will benefit those suited for it. For now funds are limited and it is estimated up to 50 homes will be sold in this program.
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