Bridge to HOPE Loan Program: Fact Sheet

This statewide program, administered by the Maryland Department of Housing and Community Development’s Community Development Administration (CDA), provides Maryland homeowners with short-term relief to maintain homeownership by preventing residential mortgage foreclosures resulting from borrowers experiencing financial difficulty caused by either a sub-prime or exotic mortgage, such as a negative amortization loan or an adjustable rate mortgage (ARM) loan that has, or is preparing to, reset.

General Elements	Specific Criteria
Overall Eligibility	Borrowers must be referred by a CDA-approved housing counseling agency (click here for listing). Borrowers must either be in delinquency or imminent potential of delinquency with no other viable alternatives available. For a fraudulent or predatory loan, the borrower may be referred to a CDA-approved housing counseling agency by the Maryland Department of Labor, Licensing and Regulation, the Maryland Attorney General’s Office of Consumer Protection or a similar organization. Initial evaluation of eligibility for this program will be determined by the housing counseling agency.
Eligible Occupancy	One-unit, owner-occupied primary residences only.Borrower is not permitted to own any other real estate at time of closing
Eligible Property Types	Attached or detached residences, condos, modular and double-wide mobile homes and PUDs
Current Interest Rate	0%
Eligible Loan Term	This is a deferred loan that is repayable at the time the house is sold, transferred or upon the refinance of the existing mortgage.
Maximum CLTV	110%
Income Limits	See below for limits.
Maximum Appraised Value	See below for limits. Current appraised value of the home must not exceed the applicable “Maximum Appraised Value”
Maximum Loan Amount	$15,000.Includes: delinquent mortgage payments, taxes and other arrearages, (excluding attorneys’ fees); a monthly subsidy of the mortgage payment for up to 24 months to cover the difference between the borrower’s current total debt payment including housing and monthly debt and a resulting debt ratio of 45% of the borrower's gross monthly income.
Maximum total debt-to-income post-intervention	Not to exceed 45% of gross monthly income
Processing	Loans are originated, processed and approved by CDA Single Family Housing or its designee
Asset Test	If borrower’s liquid assets equal or exceed 20% of the current appraised value, asset test must be completed and borrower must be deemed eligible
Employment	Must be stable; subject to Fannie Mae/Freddie Mac guidelines
Credit Payment History	Must have had a good mortgage/credit history prior to the reset as evidenced on their credit report
Housing Counseling	The counseling agency must develop an action plan that shows progress toward a solution that supports the borrower’s ability to maintain ownership of the property; counseling agency must demonstrate that quarterly reviews, at a minimum, are being conducted to ensure borrower is adhering to action plan.