Pathway to Purchase – Program Details
Pathway to Purchase is available for a limited time – it’s expiration date is tied to its funding being exhausted by County homebuyers. In Prince George’s County historically, programs like the Pathway to Purchase can run out in approximately 90 – 120 days.
The Pathway to Purchase Program is built around a Down Payment Assistance Loan (DPAL) that does not have to be paid back. This is essentially “free money” – the $10,000 loan’s balance due reduces by $1,000 each year for a term of 10 years, ending in a zero balance due. If you move or sell the house before 10 years, you owe the remaining balance.
Here’s how Pathway to Purchase works:
- $10,000 in Down Payment & Closing Costs Assistance
- Required buyer contribution of 1.75% of the purchase price of the home; on a $200,000 home you have to put in $3,500 of Down Payment.
- You must live in the home 10 years
- The loan is forgivable after 10 years with a $0 due balance
- There are income limits for eligibility. Get the current limits now.
Here’s what you will need in order to get use of the $10,000 in assistance:
- You must have a Real Estate Agent to help you search for a home & negotiate the transaction.
- Your agent must understand how to use the Pathway to Purchase program! Meet an Agent
- You must earn UNDER the income limits for your household size. Get current limits
- You must have a decent to fair Credit Score
- You must find a home or condo under $307,000 that you can qualify for financially with an approved program lender.
This is a Prince George’s County mortgage for first time home buyers that gives you down payment funds. You don’t have to pay it back if you (and your realtor) can follow the rules of the program!