Down Payment and Settlement Expense Loan Program Fact Sheet

Eligible Lenders:

Lenders approved as participating lenders to originate CDA loans; refer to Participating Lender List

Eligible Jurisdictions:

Available statewide
Existing homes do not have to be in Priority Funding Areas.
New homes do have to be in Priority Funding Areas1.


Eligible Borrowers:

Must be a first-time home buyer unless buying in a targeted area.

Maximum Loan Amount:



Interest Rate:




Repayment of DSELP is deferred and is due upon the earlier of maturity or prepayment of the first mortgage, or sale or transfer of the property.


Borrower's Minimum Equity Capital Contribution:

None, unless required by mortgage insurer/guarantor


Home Buyer Education

Mandatory for all borrowers. Refer to the requirements.


Lien Position:

DSELP is recorded in a second lien position, unless otherwise approved by the Single Family Housing.


Income Limits:

Refer to table.

Eligible 1st Mortgages:

Loans originated under the CDA Maryland Mortgage Program.


Complete Program Details:

Loans originated under the CDA Refer to DSELP/Partner Match Manual


1A Priority Funding Area (PFA) is an older community or locally-designated growth area where State and local governments already have a significant financial investment in the existing infrastructure and want to target their efforts to conserve natural resources and farmland while encouraging and supporting sensible economic and residential growth. Municipalities, Baltimore City and areas inside the Baltimore and Washington beltways are PFA's. To find Priority Funding Areas, please visit Department of Planning Website.



For More Information, Contact:
Single Family Housing at (410) 514-7530 or 1-800-638-7781 or by e-mail at

Revised 10/20/10