Q1. What is the “Lifeline” Refinance Mortgage Program?
A.  The Community Development Administration’s (CDA) “Lifeline” Refinance Mortgage Program provides a refinancing option to Marylanders who may be facing difficulties after financing their homes with adjustable rate or other unfavorable mortgages, or with mortgages that no longer fit their financial situation.

Q2.  Are there credit standards?
A.  Yes, acceptable credit is required. The CDA loan is underwritten to normal mortgage industry credit standards. A CDA approved lender will be able to help you analyze your credit standing.

Q3.  What if I am already behind in my payments on my mortgage?
A.  If you are unable to pay your mortgage payments and are experiencing financial difficulties, you need to immediately contact your existing lender and ask them to consider a “workout” or a loan modification.

Q4.  What if I have already contacted my existing lender and was told that they cannot help me?
A. Then you should contact the Home Owners Preserving Equity (HOPE) toll-free number, 877-462-7555.

Q5.  What if I have other liens/judgements against the property (example: home equity, or other type of second mortgage)…can I include those in the “Lifeline” refinance mortgage?
A.  Yes; all liens/judgements that are liens against the property must be refinanced.

Q6.  Do I have to occupy the house that I refinance with a “Lifeline” mortgage?
A.  Yes, the property must be the borrower’s primary residence.

Q7: What type of home can I use the “Lifeline” mortgage for?
A: Eligible houses include townhouses, detached or semi-detached homes, and condominium units. Modular or double-wide manufactured homes that have the State seal of approval for code compliance may be eligible also.

Q8: How long does it take to get a loan with CDA?
A: CDA loans are processed and approved by approved lenders who are given incentives to complete the loan in a timely fashion.

Q9: Are there any points on a “Lifeline” loan?
A: There are two point programs – a zero point and a two point. A point is equal to 1% of the loan amount.  The cost of the points may be rolled into the principal amount of the refinancing.

Q10: Is closing cost assistance available with a CDA loan?
A:  No. However, all closing costs, including pre-payment penalties and CDA’s points, may be rolled into the principal amount of the refinancing.

Q11: What are the current interest rates on a “Lifeline” loan?
A: The current interest rates are::

	2 Points	0 Points
30-Year Amortizing	7.500% (7.821% APR)	7.750% (7.862% APR)
40-Year Amortizing	7.625% (7.908% APR)	7.875% (7.975% APR)

The rates are frequently reviewed and subject to change. Consult with a lender for current CDA rates.

Q12: Do I have to attend homeownership counseling?
A: Homeownership counseling is not required but it is encouraged.

Q13: How do I apply for a CDA loan?
A: “Lifeline” loans are available through a statewide network of participating lenders. To apply, contact a mortgage lender from the list of approved “Lifeline” lenders.

revised 10/10/08