Closing Cost Help for Arbutus First-Time Homebuyers

If closing costs are the thing standing between you and your first home, Baltimore County may be able to help. The county's Settlement Expense Loan Program, called SELP, can lend income-eligible first-time buyers up to 10,000 dollars toward closing costs on an existing home in a designated Community Conservation Area. If you live in the home as your main residence for 15 years, the loan is forgiven.

What is the Settlement Expense Loan Program?

SELP is run by the Baltimore County Department of Housing and Community Development. According to the county, it helps low and moderate income, first-time homebuyers pay the closing costs required to buy an existing home within Baltimore County's designated Community Conservation Areas.

Most of the buyers I work with are first-time buyers, and closing costs are often the surprise that catches them off guard. Having a few thousand dollars of that covered can make a real difference.

How much can you get, and do you have to pay it back?

Because it is a deferred loan, there is no monthly payment on it. The catch is the 15 year residency rule, so it fits best if you plan to put down roots.

Who qualifies for SELP?

Income limits apply, and the program is only for first-time buyers. The home also has to be an existing home, not new construction, and it has to sit in one of the county's Community Conservation Areas. Before you fall in love with a house, ask the county or your lender whether that address qualifies. The county's Housing Opportunities and Finance office is at 105 West Chesapeake Avenue, Suite 201, in Towson, open Monday through Friday from 8:30 a.m. to 4:30 p.m., and you can reach it at dhcd@baltimorecountymd.gov.

Can you combine SELP with other help?

Often, yes, and that is where it gets exciting. The county page also points buyers to the Maryland Mortgage Program, the state's home loan program with down payment help for buyers who can handle the monthly costs but need a hand getting in the door. Teachers and first responders should also read my post on Maryland home loan help for teachers and first responders. A lender who works with these programs can tell you which ones stack together.

What if you already own an older home?

Baltimore County also offers housing rehabilitation loan programs for income-eligible homeowners. The county says these low cost or no cost loans can help correct hazardous conditions, repair or replace major systems, make energy improvements, add modifications for people with disabilities and remove lead based paint hazards. Once you buy, don't forget to file for the Maryland Homestead Tax Credit too.

What does this mean for buyers in Arbutus?

Arbutus has a lot of established, well-loved homes, which is exactly what SELP is built for. If you are renting now and dreaming about your own place, a program like this can shrink the cash you need at the closing table. My Moving to Arbutus guide is a good next read, and I am always happy to walk you through the numbers.

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