Settlement Downpayment Loan Program

ELIGIBILITY: Applicants must meet the following:

• Income limits: See income chart located in the information packet below – page 4 (income limits subject to change every January and July).
• House price limit - CDA purchase price limit for Howard County applies.  Please see SDLP information packet below for current limit.
• First-time homebuyer for HomeStarter, HomeSteader, and DreamMaker Loans. First-time homebuyer restriction not required for Revitalization and Workforce Initiative Loans.
• Have a minimum of $1,000 to apply towards settlement/downpayment costs plus one month PITI (mortgage payment) in savings account.
• Lack sufficient funds to pay for the total settlement/downpayment costs.
• Must be approved for a fixed rate primary mortgage loan.

HOW TO APPLY:

• Complete an application with an approved lender.
• Once the loan is approved with your lender, the lender will reserve funds directly with DHCD.
• The lender will send all the required documents, including the application, to DHCD for processing funds.
• Funding reservations are made only by the lender once all the necessary documents, including the primary mortgage loan approval letter, have been submitted to DHCD.
• If you're a soon-to-be homebuyer or a lender who'd like to know more, see our SDLP Information Packet (Updated June 2024).

You may also contact Linda Phillips, SDLP Administrator with the Department of Housing & Community Development at 410-313-6318, option 1, or lphillips@howardcountymd.gov.

All homebuyers participating in the Settlement/Downpayment Loan Program are required to participate in pre-purchase counseling. Certificates are issued to the homebuyer in order to settle on the home purchase.

Funds are currently available and are offered on a first-come, first-serve basis. Interested homebuyers should contact a participating first mortgage lender to begin the application process.

Availability of funds is limited.