Maryland Down Payment Assistance By Dream House Foundation
Unlocking Homeownership: The Dreamhouse Foundation Maryland Down Payment Assistance Grant
Purchasing a home can feel like a distant dream for many, especially when it comes to saving up for a down payment. The Dreamhouse Foundation Maryland Down Payment Assistance Grant offers a powerful solution to help you make that dream a reality. In this post, we'll dive into the pros and cons of this program, so you can decide if it's the right fit for you.
What is the Dreamhouse Foundation Down Payment Assistance Grant In Maryland?
The Dreamhouse Foundation offers a unique down payment assistance program that is not a loan—it's a grant. Unlike many other assistance programs that attach a second mortgage or require you to pay back the funds over time, this grant is fully forgivable and not tied to your home in any way. This means that you don't have to worry about paying it back down the road. It's a true gift to help you on your path to homeownership.
Key Benefits of the Dreamhouse Foundation Grant
No Second Mortgage
One of the biggest advantages of this grant is that it’s not a second mortgage or a silent second. With some down payment assistance programs, you might find yourself with a second mortgage that needs to be repaid over time, or a program that only forgives a portion of the amount each year. The Dreamhouse Foundation Grant is 100% forgivable, and you don’t have to worry about any strings attached to your home.Refinance After 6 Months
Unlike some programs that restrict you from refinancing after purchasing your home, the Dreamhouse Grant allows you to refinance after just 6 months. As mortgage rates fluctuate, this can be a huge benefit if rates drop and you want to reduce your monthly payments.Higher Income Limits
Many down payment assistance programs have strict income requirements, often limiting eligibility to buyers making 70–80% of the area's median income. With the Dreamhouse Foundation Grant, however, you can earn up to 140% of the area's median income and still qualify. This makes the program available to a wider range of potential buyers, especially those in high-income brackets.Nationwide Availability
The Dreamhouse Foundation Grant is available in all 50 states, which means you can access this assistance no matter where you're looking to buy. Whether you're relocating across the country or buying in your local market, this grant can help you cover the down payment.Open to Non-First-Time Homebuyers
Another perk of this program is that it is not limited to first-time homebuyers. If you’ve previously owned a home but are now looking to purchase again, you can still qualify for the grant as long as you meet the eligibility criteria.Covers the Full 3.5% Down Payment
For FHA loans, the required down payment is typically 3.5% of the purchase price. The Dreamhouse Foundation Grant covers this entire amount, meaning you won’t need to come up with any money out of pocket for your down payment. And unlike other programs that cap the amount at a certain dollar figure (e.g., $10,000 or $15,000), this grant covers the full 3.5%, no matter the price of the home.Use for Closing Costs
You can use the grant funds not only for your down payment but also for closing costs. Many buyers find themselves scrambling to come up with money for closing costs on top of the down payment, but this program can help alleviate that financial burden as well. You can even negotiate with the seller to cover the closing costs through a seller concession.
The Application Process
To qualify for the Dreamhouse Foundation Grant, there are a few key requirements:
55% Debt-to-Income Ratio: Your debt-to-income (DTI) ratio should be 55% or less, which includes all of your monthly debt payments compared to your monthly income.
Desktop Underwriting Approval: You must get approval through desktop underwriting. This is an automated system used by lenders to assess whether your application qualifies for a mortgage.
Participating Lender: The lender you choose must be a registered participant in the program. I recommend Fidelity Direct Mortgage, as they are listed as an authorized provider.
The Application Fee: A Key Consideration
While the Dreamhouse Foundation Maryland Down Payment Assistance Grant offers amazing benefits, there is a $450 application fee. This is a significant drawback, as most down payment assistance programs do not charge application fees.
However, before you let this deter you, keep in mind that this fee could be a small price to pay compared to the alternative—spending thousands of dollars out-of-pocket for your down payment. That said, it’s crucial to get pre-approved for a mortgage first. This will give you a clearer idea of whether you qualify for the program, saving you from paying the application fee if you’re not eligible.
Some lenders may even credit back the application fee if you qualify for the program, so it's worth asking about that option.
Final Thoughts
The Dreamhouse Foundation Down Payment Assistance Grant is an excellent program for many homebuyers, offering a 100% forgivable grant with no second mortgage, no restrictions on refinancing, and high-income earners can qualify. It’s available nationwide and can cover the full down payment for an FHA loan, helping you step into homeownership with little to no upfront costs.
While the $450 application fee is a downside, it may be worth the investment if you qualify for the grant. Be sure to get pre-approved by a participating lender like Fidelity Direct Mortgage before applying, and always ask if they can credit you back the application fee.
If you have any questions or would like to know more, feel free to reach out. I'm happy to help you navigate the process and explore your options!
Call/Text 301-357-6190
Email: [email protected]
Dream House Down Payment Assistance: https://dreamhousefoundation.com/dpa/
FDM Mortgage: https://www.fdmhome.com/
Calculate Your AMI: https://sf.freddiemac.com/working-with-us/affordable-lending/area-median-income-and-property-eligibility-tool
