Closing Cost Grants

Cumberland Neighborhood Housing Services, offers homebuyers a grant of up to $2,000.00 toward closing costs to encourage home purchases in the City of Cumberland.  The grant is funded in part by funds from Community Development Block Grants (CDBG).

These grants are offered on a first-come, first-serve basis and assist 50-60 homebuyers per year.  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.

No lien is placed on the homebuyer’s property.  There is no repayment of this grant.

 

Program Requirements

Participation in Homebuyer Education and graduation from the program is required by CNHS.  The ten 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 on the Closing Disclosure.

 

Eligibility

  • The property must be located within the corporate boundaries of the City of Cumberland, Maryland
  • The property must be a primary place of residence (owner occupied)
  • Property may not be a mobile home or a home that has wheels affixed or may be affixed to be relocated
  • Applicant must complete all information on the application form
  • Applicant must provide proof of income for all members of the household
  • Applicants/occupants claiming zero income must complete a “Zero Income Statement”
  • Any occupants of the residence age 18 or older must provide complete proof of all income
  • Applicant must provide a contract of sale
  • Applicant must provide a copy of the Closing Disclosure within one week following closing
  • Applicant must provide a current flood certification, as provided by the lender
  • Applicant must complete the Homebuyer Education Curriculum and receive a Certificate of Completion
  • Applicant must fall within established HUD Income Limits (amended annually)
  • Applicant may not utilize owner financing
  • Purchase property may not be in a flood plain (100 year or 500 year plain)

 

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, 400 N. Mechanic Street, Cumberland, Maryland 21502.  To obtain a grant application or ask questions, please call 301-722-6958.  Because income guidelines change frequently, applications are not made available online.