The Maryland Mortgage Program (MMP) offers a special loan product called HomeAbility, and it’s designed to assist Maryland homebuyers with disabilities finance their home purchase. This is a Conventional Loan product and provides up to 95% LTV in a first lien and up to 25% (with a maximum of $45,000) in a second lien to assist with down payment and closing costs. The combined LTV may not exceed 105%.
The interest rate for the first lien is posted on the interest rates page located on MMP’s website at https://mmp.maryland.gov/Lenders/Pages/Interest-Rates.aspx. The second lien has a rate of 0% and payment is deferred for the life of the first lien, but becomes payable upon sale, refinance, or transfer of the home.
To be eligible for HomeAbility:
One of the borrowers has disabilities OR one of the borrowers is a guardian for, resides with, and is the principal caregiver for an immediate family member who is disabled (regardless of age).
Disability is documented by submitting:
a CDA "Certificate of Disability" completed by a health, mental health, or disability professional; and/or
a proof of income from Social Security Administration (i.e. SSI or SSDI), VA or former employer: the proof is a copy of the borrower's disability policy, award letter or benefits statement from the benefits payer (insurance company, employer or other qualified disinterested party), per FNMA's guidelines; or
a proof of application for disability benefits evaluation and a copy of the Social Security Administration office’s decision on the application.
It is entirely CDA’s decision as to the sufficiency of the documentation.
This product is designed for borrowers with combined qualifying income at or below 80% of the Area Median Income. The income and purchase price limits are also posted on MMP’s website. These limits are subject to change when Fannie Mae and Freddie Mac update their income limits, usually once a year. Unless otherwise stated, all requirements and guidelines of the Maryland Mortgage Program apply, including household income limits.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
