Pathway To Purchase

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Pathway To Purchase 2019

$10,000 Down Payment and Closing Costs for First Time Home Buyers in Prince George’s County


The Pathway to Purchase Program offers first-time home buyers up to $10,000 in down payment and closing cost assistance. Home buyers can purchase a home anywhere in Prince George’s County, Maryland.

Eligible residential properties include:
  • new construction
  • resale
  • short sales
  • foreclosures
Pathway to Purchase is a 0% interest loan program that must be paid back when the home is sold, transferred or ceases to be the primary residence of the buyer(s). However, the loan repayment has a 10% decrease per year and after 10 years, it is forgiven and the lien is released.

Purchase Price Limits:
$323,000 for resale
$401,000 for new construction


  • Applicants must be first time homebuyers and must not have owned residential real estate, including cooperatives anywhere during the three years immediately preceding the date of the application to the PATHWAY TO PURCHASE program. (Investors or current owners of residential property are excluded from participation in this program).
  • Applicants must be CREDIT WORTHY and able to qualify for a mortgage through a Participating Lender.
  • Applicants must agree to live in the home being purchased as their principal residence.
  • Applicants must attend an 8-hour housing counseling class.
  • Applicant must have an eligible ratified Contract of Sale on a residential property located in Prince George’s County.


The Pathway to Purchase Program does not require a specific credit score. However, applicants must be able to meet all credit requirements or credit score benchmarks required by a Participating Lender to obtain a mortgage.


Applicants mortgage must be a fully amortized, fixed-rate mortgage. (No adjustable rate interest, interest only or negative amortization loans are acceptable).

There are four loan programs accepted with Pathway to Purchase. Accepted loan programs are:
  • VA
  • Maryland Mortgage Program
  • Conventional Loan

Applicants may combine assistance from other down payment programs with PATHWAY TO PURCHASE.

PATHWAY TO PURCHASE loan amount is based on need up to $10,000.00. There is NO MONEY BACK to the purchaser at settlement.


The Pathway to Purchase loan has a 0% interest, deferred payment. (There will be no monthly payment on the PATHWAY TO PURCHASE loan.)

Purchaser Remains in HOMEBalance Due
(As % of Total PATHWAYS TO
PURCHASE loan Received)
Less than 1 year100%
At least 1 year but less than 2 years90%
At least 2 year but less than 3 years80%
At least 3 year but less than 4 years70%
At least 4 year but less than 5 years60%
At least 5 year but less than 6 years50%
At least 6 year but less than 7 years40%
At least 7 year but less than 8 years30%
At least 8 year but less than 9 years20%
At least 9 year but less than 10 years10%
Ten years or More0%

LOAN FORGIVEN AFTER 10 YEARS. In the event of a default, the outstanding balance will accrue an annual interest at a rate of 5.75%.


Property must remain primary residence for a minimum of 10 years.


Household income for qualification of assistance under the PATHWAY TO PURCHASE Program will be determined by calculating the income of all members of the household 18 years and above, regardless of whether the household member is an applicant for the first mortgage.

For example, in the case of a husband and wife where the wife is the loan applicant because of more favorable credit, and the husband is not an applicant, the PATHWAY TO PURCHASE Program will count the income of both the husband and the wife in the eligibility decision.

Applicants for the PATHWAY TO PURCHASE Program must have gross annual household incomes at or below 80% of the area median, adjusted for family size (see Table I).

ELIGIBLE PROPERTIES Single Family dwelling units, town houses and condominiums are eligible for assistance under the PATHWAY TO PURCHASE Program.

Eligible properties may be: a. New Construction b. Re-sales c. Foreclosures d. Short Sales

Seller must certify that property is owner occupied, vacant or not lawfully occupied by a tenant at the time of initial contract, and that seller has not unlawfully evicted a tenant occupant or refused to renew a lease in anticipation of an initial contract offer where the purchase is to be funded in part by PATHWAY TO PURCHASE funds. These certifications must be stated in an Affidavit signed by the Seller and attached as an addendum to the Contract of Sale. The form for the Affidavit will be provided by the PATHWAY TO PURCHASE Program.


All zip codes within Prince George’s County are eligible.


The maximum purchase price of homes utilizing PATHWAY TO PURCHASE assistance is:
$323,000.00 for RESALES
$401,000.00 for NEW CONSTRUCTION.


All homebuyers using Pathway to Purchase must pass a Housing Quality Standards (HQS) Inspection as part of the application process. (No worries! We will assist you with this step.)


The PATHWAY TO PURCHASE program also requires borrowers to obtain a home inspection by a licensed Inspector. PATHWAY TO PURCHASE requires only a copy of the invoice and the Inspector’s License, as proof that the home Inspection has been completed. The inspection report is not required.


PATHWAY TO PURCHASE recipients must contribute 1.75% of the final purchase price or 50% of liquid assets over $3,000, whichever is greater. (Gift funds may not be used towards the 1.75% minimum cash contribution).
NO WORRIES! We will help you figure this out.


Sellers are encouraged to contribute up to 3% of the purchase price toward borrower’s closing costs. Borrowers are advised to consult with their lender before writing an offer to ensure that the seller contributions negotiated can be utilized.


Homebuyers must use an approved Pathway To Purchase Lender.


We are here to help! Contact us with any questions or to start the process with Pathway To Purchase.


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