Learn more about the Partnership’s Homeownership program including who is eligible to use the program, how the program is structured, where the program can be used, what the requirements are if a home buyer uses the program, and other details.
Loans are made pending availability of funds, on a first-come first-served basis.
The loan is a zero-interest, deferred payment loan with a term of 10 years that is forgivable at the end of the 10-year term, so long as the provisions of the program are met.
The loan may only be used for down payment and closing costs at settlement for the purchase of a primary residence (single-family home, townhouse, condominium) in the City Limits of College Park; one loan per eligible address; one loan per employee.
This loan will be secured on a property with a deed of trust and promissory note, with a balance due upon sale or transfer of the property, if the property ceases to be the primary residence of the homebuyer, if the homebuyer (or spouse) is no longer employed by the University or City, or if the homebuyer otherwise fails to comply with the program requirements.
The homebuyer may combine loan proceeds with funds from the Maryland Mortgage Program offered by Maryland Department of Housing and Community Development, the City of College Park New Neighbor Homeownership Grant Program, and other funding opportunities.
Homebuyers are required to live in the home purchased1 under this program and must certify to the Maryland State Department of Assessments and Taxation that this is the primary residence of the homebuyer, as defined by the State of Maryland. The homebuyer must occupy the residence for a period of at least ten years from the date of settlement. If the property ceases to be the homebuyer’s primary residence, if the homebuyer does not live in the home, if the homebuyer (or spouse) leaves the employment of the City of College Park or University of Maryland, or otherwise fails to comply with the program requirements, the homebuyer will be required to repay The Partnership according to this schedule:
|Year||Loan repayment schedule|
|year 11||Loan is forgiven|
- Homebuyers may request a waiver of the requirement to live in the home, for the purpose of temporary employment-related assignments out of state, such as sabbaticals. Waivers may be requested with documentation and must be approved by The Partnership’s Executive Board prior to any temporary relocation. A waiver will not last more than one year at a time, and homebuyer must maintain the home as the primary residence.
- Borrowers may request a waiver of the continued employment requirement if termination of employment was involuntary and not for cause. Waivers may be requested with any required documentation and must be approved by The Partnership’s Executive Board.
- Borrowers may not be able to obtain a HELOC, but they may be able to refinance and the Partnership can subordinate its loan under certain conditions. Please review the refinancing policy HERE.
Homebuyers are required to enter into a Right of First Refusal agreement that provides The Partnership a 30-day opportunity to purchase the house if the homebuyer decides to sell or transfer the home within ten years of the home purchase. If The Partnership decides not to purchase the home, the homebuyer is encouraged to engage in good-faith negotiations to sell to buyers who will use the home as their primary residence.
Loan Eligibility and Conditions
In order to be eligible for the Partnership’s Homeownership Program Loan, an applicant must:
- Be a regular full-time, benefits-eligible University of Maryland employee or full-time employee of the City of College Park (or spouse), 18 years of age or older. Newly-hired regular full-time, benefits-eligible employees who are relocating also qualify, per a written provision signed by the University’s or City’s Department of Human Resources.
- Purchase a single-family home, town house or condominium that will be owned and lived in by the homebuyer in the City Limits of College Park. (See definition of owner-occupied property below. See MAP of the City limits of College Park.)
- Not already own a single-family home, town house or condominium in College Park.
- Submit a completed application no less than 3 weeks prior to settlement in order to be considered and reserve a loan.
- Submit a $100 origination fee once the loan is approved to the Partnership
- Be listed on all documents, including the contract of sale, mortgage loan application and final mortgage commitment letter.
- Use loan funds only for down payment or closing costs.
- Agree to follow program instructions and abide by all provisions of the loan.
- Agree to repay funds in full, if applicable, per the provisions of the loan.
- Sign a loan agreement, including promissory note and deed of trust.
- Loans are available pending availability of funds, on a first-come first-served basis.
- This program may be discontinued at any given time.
- A completed application does not guarantee a loan.
- Please check with your lender re: using an FHA loan with our prorgram
- The loan may only be used for down payment and closing costs at settlement for the purchase of a primary residence in the city limits College Park; one loan per eligible address; one loan per employee.
- A home is defined as a single-family home, townhouse or condominium as long as the homebuyer owns the unit.
- An owner occupied property is defined as a property which is the owner’s permanent, year-round residence and which may be occupied by the owner’s family and no more than two other individuals who lease space from the owner.
- A homebuyer will be required to sign a promissory note and deed of trust memorializing the loan.