The Cumberland Neighborhood Housing Services, Inc. (CNHS) Closing Cost Grant for Homebuyers   program is a grant program funded with Community Development Block Grant (CDBG) monies.  The program assists homebuyers by paying up to 50% of a down payment required on a home purchase and/or up to 100% of closings costs associated with the home purchase.

These $1,000 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 $1,000 with two weeks prior to settlement.  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.

Participation in Homebuyer Education is required for the program and is offered by CNHS.  The five two-hour courses may be completed in a period of five weeks.  CNHS offers one two-hour morning class and one two-hour evening class per week.  Contact the CNHS for a schedule of courses.  Homebuyers should enroll in courses prior to or immediately following application for home purchase financing.  Applicants should immediately inform the mortgage loan processor that they are obtaining a grant for closing costs.

Costs eligible for the program are those costs totaling the dollar amount reflected on Line 120, “GROSS AMOUNT DUE FROM BORROWER,” of the HUD-1 Settlement Statement.

Eligibility:

• Property must be located within the city limits of Cumberland, Maryland
• Property must be primary place of residence

Processing of Application:

• Applicant must complete information on application form
• Applicant must provide proof of the following:
• Income not exceeding guidelines*
• Contract of Sale
• Homeowner’s Insurance
• Homebuyer Education Certificate
• HUD-1 Settlement Statement within two weeks following settlement.

Number in Household	Household Income Limit
1	$40,700
2	$46,500
3	$52,300
4	$58,100
5	$62,750
6	$67,400
7	$72,050
8	$76,700

 

Applications are received, reviewed for completeness and eligibility, and processed by the program manager. Funds are reserved upon receipt of the completed application form, proof of income, and 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, proof of homeowners insurance, 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, Inc. (CNHS) at 400 North Mechanic Street, Cumberland, Maryland 21502.  Questions should be directed to Judy Spencer at 301-722-6958 or e-mail at jspencer@cumberlandnhs.org. 

To reserve money for your application, click here to download a [PDF] form »

WE DO BUSINESS IN ACCORDANCE WITH THE FEDERAL HOUSING LAW