Closing Cost Assistance Grants – This Program has Ended for the Immediate Future

Purchasing a home is one of the largest financial transactions that you may ever make and has numerous associated fees and costs. Coming up with the money for theses additional upfront costs is often the largest hurdle facing first-time homebuyers. Cumberland Neighborhood Housing Services, in cooperation with the Community Development Block Grant program with the City of Cumberland, provides qualified first time homebuyers a grant to assist with the closing costs associated with purchasing a home within the City of Cumberland. This grant can assist you with navigating around this hurdle, there is no lien placed on the homebuyer’s property and does not require you to ever pay back the money.

Grant funding is anticipated to be awarded on an annual basis. However, it is not guaranteed and the amount of funding may vary from year to year or be nonexistent. Grants will be awarded on a first come first serve basis until funding is no longer available. Cumberland Neighborhood Housing Services reserves the right to restrict a portion of the funds to serve special incentive programs.

Grants will be awarded based upon one or more of the qualifying areas as follows:
Applicant with a family income less than 80% of the AMI $1,000
Applicant or spouse who is a Disabled Veteran $ 250
Cumberland Housing Revitalization Program home purchase $1,000

Grants will be awarded in the form of a check written to the lending institution or closing agent and cannot be written to the buyer. Grant awards are only approved for payment of closing costs including Realtor fees. A copy of the buyers Closing Document must be supplied to Cumberland Neighborhood Housing Services within 10 days of the closing. On average, the homebuyer’s closing attorney will receive the disbursement of the grant two weeks in advance of the settlement, requiring application of the grant no later than two weeks before closing. A notice of 14 days is required to process disbursements for this program.

Program Requirements

Participation in Homebuyer Education and graduation from the program is required by CNHS. The eight hours worth of Homebuyer Education may be completed over several days or several weeks. CNHS offers courses several times per month. Homebuyers should enroll in courses prior to or immediately following application for home purchase financing. Applicants should immediately inform the mortgage loan processor (broker or bank) that they are obtaining a grant for closing costs.

Costs eligible for the program are those costs totaling the dollar amount reflected in the Closing Disclosure.

Eligibility

• • • The property must be located within the corporate boundaries of the City of Cumberland, Maryland
    • Applicants need to be First-Time Homebuyers who are defined as not having owned (or been on the title for) a principle residence anywhere in the last three years. In addition, homebuyers may not own any other real property at the time of settlement
    • The home being purchased must be a single family residence, the primary residence of the buyer (owner occupied) and cannot bean investment property or second home. It cannot be a multi family residence, mobile home or a home that has wheels affixed or may be affixed to be relocated. Leasing, rental or other arrangements are not permitted
    • Applicant must submit a fully completed application package
    • The Applicant must submit proof of income and assets for all household members 18 years of age and older (employment, child support, alimony, disability, social security, etc.) in the form of payment stubs, check copies, award letters, etc. for the most recent 8 week or 2 month period. Family members claiming zero income must complete a “Zero Income Statement”
    • Submit a copy of the last two years of the Applicants Federal tax return
    • Applicant must provide a copy of the executed contract of sale for the home purchase for which the grant is requested
    • Applicant must complete an 8-hour minimum certified Homebuyer Education Course prior to closing and submit a Certificate of Completion
    • Purchase property may not be in a flood plain (100 year or 500 year plain). Applicant must provide a current flood certification, as provided by the lender
    • Applicant may not utilize owner financing and have liquid assets less than 20% of the sales price
    • Applicant must provide a copy of the Closing Disclosure within one week following closing
    • Applicant must have a single family household income at or below 80% of the Area Median Income limits for Cumberland Maryland under the HUD HOME Program. This amount is amended and published annually by HUD according to the number of individuals residing in the home and the total amount of household income with the most current shown below.
    • A current chart displaying the maximum family income limits by family size can be reviewed by  selecting the “About Us” tab at the top and then selecting the “Income Limits for Programs” in the menu.
    • Applicant must provide a copy of the Closing Disclosure within one week following closing.

Receiving a Grant

Applications are received, reviewed for completeness and eligibility, and processed by the counselor. Funds are distributed on a first-come, first-closed basis, meaning that availability is dependent upon closing the loan as soon as possible. Grants are not reserved or held for clients. All application information must be received, including proof of all income and a Contract of Sale. Funds are disbursed to the closing attorney upon receipt of the Letter of Commitment or Loan Approval, a copy of the Homebuyer Education Certificate, and submission of the name and address of attorney and the date of closing.

All applications are to be submitted to Cumberland Neighborhood Housing Services, 635 East First Street, Cumberland, Maryland 21502. To obtain a grant application or ask questions, please call 301-724-6606 extension 109. Because income guidelines change frequently, applications are not made available online.