I get multiple calls each and every day regarding the program, and unfortunately not everybody found out about the program in time. I get at least one call per day from somebody who has just purchased a foreclosure in PG County and didn’t find out about the program until after settlement. Inevitably, the conversation goes something like this:

New Home Owner:    I didn’t find out about the program until after I closed on the house, can I still take advantage of the program?

Me:    That’s not a question I can answer.  All I can say is that I am telling all of my PG County clients about the program.  My best suggestion would be to call your Realtor directly and ask them.

Unfortunately, I don’t know of any way to take advantage of the program if you’ve already purchased, but I know plenty of people who would like to!  This situation (unfortunately) teaches a very important lesson when it comes to real estate.  Not all agents are equal, and choosing the wrong agent is costing people up to $20,000 in PG County!!!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 – office
301-653-8116 – cell

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The goal of the program is to reduce the number of vacant homes in neighborhoods troubled by foreclosures. Through a government funded program (Thanks to the large economic stimulus package), PG County has been allocated $10,883,234 for a program called the “Down Payment Closing Cost Assistance Program” (DPCCA).

If you’re looking to buy a foreclosure in PG County, you may qualify!  For a detailed list of qualification requirements, please click here:  Down Payment Assistance for First Time Home Buyers in PG County. This is going to allow you to purchase your first home with between $1,000-2,000 down, and no closing costs or additional down payment required!  That means some people are actually going to be getting their first home for almost nothing down, AND they can qualify for the $8,000 first time home buyer credit as well!

Keep in mind that this program is not designed to get people loans with serious credit issues.  Your credit and debt-to-income (DTI) ratio’s need to allow you to qualify for a traditional mortgage.  This program has been designed for people with good credit, but limited savings.

Will You Need to Pay Back the DPCCA?

You may be required to pay back some or all of the DPCCA Money you receive, depending on how long you live in the home.  The money is treated like an interest free loan, that does not need to be paid back until you sell your home.  Here’s the rundown on how much you may owe at settlement:

If you live in the home for: % of amount due is:

0-3 years                                                                        100%

3-6 years                                                                         50%

6-9 years                                                                         30%

10+ years                                                                         0%

The longer you live in the house, the more money you save!  When you figure that this program can save you anywhere between $6,000-$20,000, it makes one heck of an argument for buying a foreclosed home!

Have Questions, or Want to Know More?

Please feel free to give me a call on my direct line at (301)-653-8116 and I’ll be more than happy to assist you with taking advantage of this great program!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 – office
301-653-8116 – cell

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SOMD Home Search
Southern Maryland Custom Homes & Land

The Neighborhood Stabilization Program (NSP) and the Down Payment Closing Cost Assistance Program (DPCCA) have released their guidelines and trained a select group of lenders to be able to provide this program to potential homeowners!

How Does It Work?

Step 1:  Find out if you qualify!  Here’s the eligibility requirements:

1. Must be 18 years or older
2. Must be a first time home buyer, or must not have owned anywhere for the last 3 years
3. Home being purchased MUST be primary residence
4. Annual household income must not exceed program limits (less than $86,600 for 1 person, or $99,000 for two people, if you have children, the limit increases.  An income calculator for determining eligibility can be found at http://webapps1.hud.gov/hfc/calculator )
5. Must qualify for a loan from a participating lender (There are currently 37 approved lenders, give me a call for a complete list)
6. Must contribute a minimum amount of cash towards purchase (Between $1,000-$2,000)
7. Must have ratified contract of sale on a vacant foreclosed property (Need help finding that home?  That’s where a spiffy Realtor like myself comes into play!)
8. Buyer must also attend an 8 hour minimum housing counseling class provided by HUD and receive a certificate of completion. (Class is free, and there’s already a waiting list, so hop to it!)

What Does DPCCA Do?

DPCCA will provide up to $20,000 in closing cost assistance on an interest free loan, with an interest rate of 0%, that is payable only when you go to move!  The longer you live in the property, the less you are  required to repay!  For example, if you live in the home for 3 years, you’re required to repay 100%.  If you live in the house for 4-6 years, the balance due is 50%.  For 6-9 years, the balance is 30%, and if you live in the home 10+ years, you’re not required to repay the DPCCA at all!

Essentially, this program is designed to allow low-income families to purchase foreclosed properties with minimal downpayment.  The will help reduce the foreclosure blight that has troubled PG County, and reduce the number of vacant homes sitting in the area.  This program can be used in combination with the $8,000 first time homebuyer tax credit, which means that it’s possible to buy a vacant foreclosure for as little as $1,000 down, all closing paid, with 3.5% downpayment paid by DPCCA, AND $8,000 in tax credit provided by the federal government!  The incentives to buy a foreclosure in PG County just keep growing!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 – office
301-653-8116 – cell

Charles County Real Estate Blog
SOMD Home Search
Southern Maryland Custom Homes & Land