Has anyone in Maryland been able to apply grants to their NACA loan. I am specifically looking for information about the Maryland 4% Grant Assist Special Assistance Grant Flex 4% Grant and the SELP specifically for Baltimore County?
I am in Baltimore county. The Maryland mortgage program and all the grants associated do not work with naca because you are required to use either wells Fargo (specifically the bank naca advocates against) or one of a select few others. There are about 2 dozen; all but 3 are local banks. At this point naca only works with bank of America and they are not on the Maryland mortgage program list for Baltimore county.
With that said there are 2 things to consider. First, Maryland caps (used to anyway) all combined seller and grant contributions for a conventional loan at 3%. The MMP grants are not for conventional loans which is why there is a 4% option but naca offers conventional loans. You might want to check to see if the cap still exists.
Second it may not matter because it is very common to get contributions from your seller which would could potentially buy your interest rate down to the max without spending a dime.
If you must have a grant there are 3 main criteria the grant must meet in order to work with naca besides obviously being able to choose bank of America as your lender:
The grant must be able to be applied toward down payment
The grant cannot have an allocation toward closing costs requirement
The grant must be considered a gift and have no repayment or length of stay in the house requirement
Your best bet is look for bank of America grants since 90% of grants out there are either not gifts or they go toward closing costs in some way or they force you to choose a lender that isn’t bank of America. Bank of America will however issue an automatic rate reduction of 0.5% if your income is below 80% of MSA.
I know this is a lot to take in. Hopefully it helps you out. Good luck on your process!