The primary purpose of the Settlement Expense Loan Program (SELP) is to encourage first-time homebuyers to consider homeownership in existing residential communities in Harford County. The program is administered by the Harford County Housing Agency. Homebuyers’ workshops and individual counseling are offered to potential homeowners. Settlement expense loans up to $5,000 are available to families whose income is at or below 80% of area median, adjusted for household size.

BUYER ELIGIBILITY

1. Completes homebuyer education curriculum:  Workshop(s) and counseling session(s) with a Harford County designated HUD certified Counseling Agency (Home Partnership, Inc. or Harford County Housing Agency [HCHA]).  BEFORE SIGNING A REAL ESTATE CONTRACT.
2. Meets income eligibility:  80% of area median, adjusted for household size.
3. First time home buyer (cannot have previously owned a dwelling within the last 3 years).   Exceptions granted for divorce, death of spouse, or owner of substandard housing.
4. Qualifies for a fixed rate mortgage with a participating lender. (Please see referral list.)
5. At the time of the SELP interview, liquid assets cannot exceed 20% of gross annual household income.
6. Buyer's minimum cash contribution: 3% of gross annual household income for families at or below 50% of area median income, up to 2% of minimum cash contribution, may be a gift, but not a loan, and 5% of gross annual household income for families at or below 80% of area median income, up to 4% of minimum cash contribution, may be a gift, but not a loan.

PROPERTY CRITERIA

1. Existing dwelling or new construction that is owner occupied, occupied by buyer, or vacant at the time the contract is signed.
2. Dwelling types: Single family detached, semi-detached, townhouse, and condominium apartment.
3. Passed a home inspection for Federal Housing Quality Standards (HQS) using a designated County inspection firm which certifies that the dwelling is free from hazardous defects and meets basic standards for livability. All noted deficiencies must be corrected and reinspected prior to SELP Loan approval. Inspection fee can be financed in SELP loan.
4. Sales price cannot exceed 95% of median purchase price for area (203B limit), nor the appraised value of the dwelling.
5. Must be principal residence.

SELP LOAN TERMS

1. SELP Loan Amount: Maximum - $5,000.
2. Loan will accrue interest of 5% in the first year only.
3. Loan principal and accrued interest is repayable upon the earlier to occur of sale, transfer, refinance, default on primary loan, or discontinuance of borrower occupancy.

Harford County Housing Agency
15 South Main Street - Suite 106, Bel Air, Maryland 21014
410-638-3045 / FAX:  410-893-9816
E-mail:  housing@harfordcountymd.gov

                                                                                                                                                                                                                Revised 06/08