Skip to main content
Find a Lawyer

Maryland Code, Housing and Community Development § 4-307

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) Proceeds of a Program loan shall be used only to make a down payment or pay settlement expenses for an eligible homebuyer to purchase a personal residence.

(b) A Program loan shall be secured by a mortgage lien that:

(1) may be subordinate to other mortgage liens; and

(2) may include terms, including deferred payment of principal and interest, that the Department considers necessary to make housing purchases affordable to eligible homebuyers.

(c) In reviewing an application for a Program loan, the Department shall:

(1) consider the eligible homebuyer's financial resources, including savings available to make a down payment or pay settlement expenses, in relation to:

(i) the purchase price of the home; and

(ii) the down payment requirements of the lender; and

(2) give high priority to eligible homebuyers of low income within the income limits established under § 4-304(b)(3) of this subtitle.

(d) Notwithstanding any other law, the Department may require that Program loans become due and payable on the later sale or transfer of the property, but the Department may allow an eligible homebuyer who purchases the property to assume the Program loan.

(e) If a borrower defaults, the Department may modify the interest rate, the time or amount of payment, or any other term of a Program loan to facilitate repayment of the Program loan and to achieve the purpose of the Program.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Maryland Code, Housing and Community Development § 4-307 - last updated January 01, 2025 | https://codes.findlaw.com/md/housing-and-community-development/md-code-hous-and-cmty-dev-sect-4-307/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard