Homeownership for Individuals with Disabilities (HIDP) Program Highlights

Eligible Borrower(s):

• One of the borrowers is disabled OR
• One of the borrowers has a son or daughter who is disabled
• regardless of the age of the son or daughter;
• who resides with one of the borrowers and is cared for principally by one of the borrowers
OR
• One of the borrowers is a guardian for an immediate family member who is disabled
• An immediate family member includes a spouse, domestic partner, son, daughter, brother, sister, mother or father;
• regardless of the age of the immediate family member;
• who resides with one of the borrowers and is cared for principally by one of the borrowers
• A disability is defined as a physical or mental impairment that substantially limits one or more major life activities (for example, hearing, seeing, speaking, sitting, standing, walking, concentrating, or performing manual tasks). The definition does not include a person whose disability is based solely on any drug or alcohol dependence.
• A "Certificate of Disability" completed by a health, mental health, or disability professional is required.
• All borrowers must meet program eligibility guidelines and the loan must conform to all underwriting criteria.
• Must be a first-time homebuyer unless buying in a targeted area or a veteran and exercising one-time exemption to first-time homebuyer requirement (must provide copy of DD-214).

Cosigners:

Eligible Jurisdictions:

Eligible Properties:

• Existing or newly constructed homes.
• Newly constructed homes must be located in Priority Funding Areas. ¹

Proximity Rule:

• Occupancy implies that the home is located within reasonable proximity of the borrower’s place of employment.
• If the borrower’s employment requires the borrower’s absence from home a substantial amount of time, the following two conditions must be met:
• The borrower must have a history of continuous residence in the community; and
• There must be no indication that the borrower has established, or may be required to establish, principal residence elsewhere.

Homebuyer Counseling:

• Refer to the list of counseling agencies for one in your area.
• A homeownership counseling certificate must be received by all buyers prior to execution of a contract of sale for a property that will be purchased under this program (contracts of sale that are executed prior to completion of homeownership counseling will not be eligible).
• Counseling certificate may not be more than one year old at the time of closing

Home Inspection:

Interest Rate:

• 1.50% - 3.50% (subject to change) based on borrower qualifying at a housing expense ratio not greater than 30.0% [principal and interest payment of mortgage loan + monthly escrow amount for taxes and hazard insurance divided by the gross monthly income of the borrowers] and a total debt-to-income ratio not greater than 38.0% [housing expenses plus long term debt divided by the gross monthly income of the borrowers].
• Borrower may be required to respond to income monitoring during the term of the loan; rate may be increased after closing if Borrower's household income exceeds the Maximum Current Annual Household Income.
• If prequalification is required, qualify borrower at a 3.50% interest rate.

Maximum Current Annual Household Incomes:

• $106,100: Washington D.C. PMSA (Calvert, Charles, Frederick, Montgomery, and Prince George’s Counties);
• $89,400: St. Mary’s County; and
• $88,100: all other areas of the State.

Maximum Purchase Prices:

• $289,470: counties of Allegany, Caroline and Dorchester;
• $287,257: non-targeted areas of Wicomico County; and
• $300,000: remainder of the State.

Maximum Underwriting Ratios:

• 30.0%: the maximum housing expense to income ratio
• 38.0%: the maximum total debt-to-income ratio
• Exceptions to these ratios will be considered up to 32.0%/40.0% with at least two strong compensating factors.

Non-Taxable Income:

• If a particular source of regular income is not subject to federal income taxes (for example, certain types of disability and public assistance payments, military allowances), the amount of continuing tax savings attributable to the non-taxable income will be added to the borrower’s gross income when calculating the borrower’s underwriting ratios.
• The percentage of income that is added is the appropriate tax rate for that income amount.
• If the borrower is not required to file a federal income tax return, the tax rate that will be used is 25 percent.

Minimum Credit Score:

Credit:

• Satisfactory credit history required.
• Borrowers having no traditional or non-traditional credit history are not eligible
• In the absence of a credit score on the credit report, evidence of acceptable non-traditional qualifying credit, such as a satisfactory rental history, satisfactorily paid utility (cable, telephone, electric and gas) bills, satisfactorily paid insurance (renter’s or car) bills, etc. may be considered.
• Applicants must have established an acceptable credit rating for at least one year from the date of the release of a judgment or collection account.
• An exception to this policy will be considered if the paid collection account or judgment was a medical account with a nominal balance and applicant has a reasonable explanation why the account was delinquent.

Term:

Processing Fee:

Minimum Cash Contribution:

Mortgage Insurance/Guarantee: