New Resources Extend Popular Initiative Helping Borrowers with Significant Student Loan Debt Move into Homeownership

NEW CARROLTON, MD – Maryland is putting more resources into a popular initiative to help members of the Millennial generation who have been unable to move into homeownership because of significant student debt.

Governor Larry Hogan and Secretary Kenneth Holt said the state will commit $70 million for the next phase of the “You’ve Earned It!” program for Maryland Mortgage Program borrowers who have more than $25,000 in student loan debt and are purchasing a home in one of the state’s Sustainable Communities.

The program is aimed at assisting potential buyers, particularly members of the so-called “Boomerang Generation,” who are employed and have good credit but are saddled with student debt that is proving a barrier to homeownership. These young people are more likely to live with their parents than were young people one or two decades ago and they are saddled with significantly more student loan debt than their predecessors.

““This initiative is an innovative way to help young people and families establish roots and create long-lasting financial security,” said Governor Hogan. “Through this program, we are changing lives, changing communities and changing Maryland for the better.”

Through “You’ve Earned It!”  the Maryland Mortgage Program is offering a 0.25 percent discount on the program’s fixed rate, 30-year conventional and government mortgages and $5,000 in down payment assistance in the form of a zero percent deferred loan to qualified homebuyers. In addition, DHCD is waiving its fee for buyers who take advantage of the Maryland HomeCredit program, for additional savings. “You’ve Earned It! is open for a limited time to families purchasing a home in one of the state’s Sustainable Communities.

This newest phase builds upon a $20 million initiative that Secretary Holt announced in May that aimed at borrowers with student loan debt and veterans and military families. That initiative sold out within weeks.

“This is still a good deal for Maryland families and it is still a good deal for our state,” Secretary Holt said. “The You’ve Earned It” initiative unlocks the buying power of a key demographic that is facing greater barriers to homeownership than their predecessors. This program will provide a significant boost to Maryland’s housing market which will provide a big boost to our overall economy.”

Maryland’s Sustainable Communities program seeks to strengthen reinvestment and revitalization in the state’s older communities through state, local and private sector partnerships. There is at least one designated Sustainable Community in each of Maryland’s 23 counties and Baltimore City.

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