Home Purchase

• HOME

  This is a 30-year, below market, fixed-rate mortgage for borrowers with a total household income below 80% of the area median income. The interest rate is equal to the Freddie Mac 60-day delivery rate, with a minimum interest rate of 5%. The first mortgage is funded by one of our local participating lenders. No mortgage insurance is required. Additionally, two points (% of loan amount) are charged by SNHS (preferably to be split between the buyer and seller). Costs for SNHS required repairs and other renovations may be borrowed as an additional mortgage funded by SNHS at the current rehab program interest rate, provided the total of all mortgages is within appropriate affordability and loan-to-value. The minimum borrower contribution is $500. If the applicant's total household income exceeds 80% of the Area Median Income, go to the Home-Plus program below.

• HOME-Plus

  This is a 30-year, fixed-rate mortgage program to be used if the applicant's total household income exceeds 80% of the Area Median Income. The interest rate equals the Freddie Mac 60-day delivery rate with a 5% minimum. The first mortgage is funded by one of our local participating lenders. No mortgage insurance is required. Costs for repairs may be borrowed as an additional mortgage funded by SNHS at the current rehab program interest rate. The required down payment is 5% of the purchase price. A minimum of 2% of the purchase price must be documented as the borrower's own out-of-pocket funds, and the remaining 3% down-payment may be borrowed or gifted. Two points (% of loan amount) are charged by SNHS. The points are preferably split between the buyer and the seller. Maximum loan amount is $225,000.00.

• Expanded Tandem

  SNHS offers secondary mortgage for the amount over 80% of purchase price less downpayment, in order to preclude the need for (pmi) mortgage insurance. Only applies if the first mortgage provider is an SNHS participant. Available county-wide with income restrictions. Contact office for specific details.

• Just Price NHSA

  This is a 30-year fixed-rate mortgage program available Citywide with no income restrictions. This product is offered through Neighborhood Housing Services of America. Rate changes regularly. No mortgage insurance required if SNHS approves a secondary tandem mortgage.

• CDBG Principal Write-down Grant

  Up to $15,000 forgivable loan to reduce mortgage loan for properties purchased within city limits. Funds are limited. Income limit is 80% AMI.

• Neighborhood Stabilization Program (NSP) Grant funds

  Principal write-down forgivable loan up to $15,000, plus closing cost forgivable loan up to $7,000, and plus rehab forgivable loan up to $8,000 are available for purchase in zip codes 21801 & 21804 (Salisbury), 21837 (Mardela Springs), and 21850 (Pittsvile), no exceptions. The income limit is $120% of area median income (AMI) Funds are limited.

• Ultra-Light Closing Cost Loan

  Closing cost/down-payment assistance loan secured by the property. 7% (7.8377% APR) for a maximum of $15,000, and a term of up to 10 years. Available in Salisbury neighborhoods county-wide provided that the first mortgage lender is an SNHS participant. The origination fee is $100.00, which may be waived if the first mortgage is made in tandem with SNHS mortgage loan product.

Refinance

• SNHS Refinance

  Restricted to households at or below 80% AMI without credit problems. Fixed rate is equal to the Freddie Mac 60-day delivery rate with a minimum of 5%. At least $3,000 in rehab must also be performed for which an additional mortgage can be provided by SNHS at the current low-interest rehab rate. Two points (% of loan amount) are charged by SNHS. 80% of the first mortgage is funded by a participating lender, and SNHS provides the 2nd (tandem) loan, therefore, no mortgage insurance required. As with a purchase transaction, closing costs will apply.

Rehabilitation and Renovation

• SNHS Rehab Loans

  Renovation and repair loans to homeowners in SNHS' three target neighborhoods.
  The low interest rate is assigned at the time of pre-qualification. The maximum loan amount is $25,000 unless otherwise approved by the SNHS loan committee. Two percentage points are payable to SNHS at settlement. The term is determined based upon the scope of work, the amount of the loan and affordability of the applicant.

• State of Maryland Housing Rehab Programs

  MHRP - Maryland Home Rehabilitation Program A State of Maryland (DHCD) - Rehab program packaged by SNHS for homeowners within the city of Salisbury limits. Applicant's total household income must be below 80% of Area Median Income to be eligible for this program. The interest rate (0-7%) and the terms are set by the State of Maryland based on affordability. Deferred (for 20 years) loans are possible for very low-income (below 50% of Area Median Income) homeowners.

  S.T.A.R. - Special Targeted Applicant Rehabilitation Program - A State of Maryland (DHCD) rehab program packaged by SNHS for homeowners within the city of Salisbury limits for extremely low income level households. Applicant's total household income must generally be below 30% of Area Median Income, or up to 55% of AMI in certain circumstances. Payment is deferred for 20 years.

  LHRGLP - Lead Hazard Reduction Grant Loan Program - A State of Maryland (DHCD) rehab program packaged by SNHS for homeowners within most of the city of Salisbury limits (depending upon census tract). Grant or loan approval is made by the State's DHCD agency based on affordability and equity (or lack thereof).

• Construction/Rehabilitation Technical Assistance

  Customer support in understanding the housing rehabilitation process.

• Grants for repairs

  A CDBG-funded program available to homeowners with a total household income below 80% of Area Median Income to make repairs generally relative to health and safety factors. Funds are on a limited first-come, first-served basis. SNHS offers this program within city limits only. Those located in the County should contact Planning, Zoning & Community Development department in the Government building downtown. The maximum grant amount may vary from one grant round to the next. The associated lien is 5-years and is forgivable after that period has passed.

Education and Development

• Homebuyer Education Training

  Required of all SNHS customers prior to settlement. Training is offered monthly by certified volunteer trainers. The curriculum covers pre-purchase and post-purchase topics. A fee of $40.00 is charged to cover the cost of materials. One-on-one training is available under special circumstances at a cost of $60.00. If notice of need is given less than one week prior to the settlement date, the one-on-one fee is $100.00.

• Pre-Qualification Review

  Pre-qualification reviews offered to prospective buyers to evaluate their credit readiness and affordability. Ideally, applicants would undertake this review prior to making an offer on a specific house or searching for financing.

• Individual Budget and Homeownership Readiness Counseling

  Service provided for customers not yet ready to purchase because of credit and budgeting issues, but who are committed to the goal of homeownership, or who are delinquent on existing mortgages.

• Lunch and Learn Sessions

  Offered on an as-requested basis at local employers during lunch or break time. Informal presentations are geared to increasing awareness of SNHS programs and services, including leadership training, money management skill building, housing counseling, community development, below-market loan rates, and ultimately, home purchases.

• Realtor Information Session

  Provides realtors with a comprehensive understanding of SNHS program guidelines and policies.

• Foreclosure Counseling and Intervention

  SNHS is a HUD certified foreclosure counseling agency. Our staff will work with clients and their lenders to try and avoid foreclosure. This is a FREE service offered to any homeowner who is having trouble meeting their mortgage obligation.

Property Development

• Purchase-Rehab-Resale Program

  Under this program, vacant properties are purchased, renovated, and sold to new owner-occupants. Depending upon the source of funds used, the purchase of these properties may be income restricted.

• Intervention Buying

  Purchase of at-risk properties by SNHS to be held for demolition, renovation or resale to new owner-occupants.

Community Development

• NeighborWorks Week

  Annual NeighborWorks America event. Residents typically choose a beautification project and volunteers work together to promote community.