The state of Maryland is offering more relief to homebuyers - including eliminating up to $50,000 of their student debt - in light of the ongoing "inflation crisis," announced Gov. Larry Hogan today.
The state's SmartBuy program will now offer up to $50,000 in student debt payoff assistance, up from $30,000. Eligible buyers can get either 15 percent of their purchase price, or $50,000 in student debt payoff, whichever is lower.
Hogan said in a press release:
“As the country continues to deal with an inflation crisis, we are again taking steps to provide relief to Marylanders. Our SmartBuy initiative—the first of its kind in the country—has established a national model for removing persistent roadblocks to homeownership and financial security, and this expansion will allow us to help even more families.”
SmartBuy is part of the Maryland Mortgage Program, which primarily offers federal loans for Maryland homebuyers.
The state's housing department will also offer SmartBuy borrowers a 6% down payment and closing-cost assistance loan, if their income is at or below 50 percent of the average median income.
Other changes for Fiscal Year 2023 include:
- $6,000 of assistance for the down payment, an increase from the previous $5,000
-A new loan product called HomeStart for low-income residents to help them with a 6% down payment and a closing-cost loan
-Increased funding for homebuyers with disabilities, through the HomeAbility program
Kenneth C. Holt, secretary of the state's Department of Housing and Community Development, said in a statement:
“As interest rates increase and demand drives housing prices up, the State of Maryland is always looking for innovative ways to help make homeownership affordable. Launched more than five years ago, SmartBuy was the first government mortgage program in the nation to specifically address student loan debt, which is a significant barrier for many potential homeowners.”
