Equal Housing Lender
Fairway NMLS #2289
Ken Powell NMLS #2656628
The Settlement Expense Loan Program (SELP) is Charles County's own assistance program for first-time buyers purchasing existing homes in the county. It provides a deferred second mortgage of $1,000 to $6,000 for closing costs, and you do not make monthly payments on it. Repayment waits until you sell, refinance, or move out.
Eligibility is based on anticipated annual household income on the day of closing, at or below 100% of area median income, adjusted for household size. Limits below were revised May 1, 2026 and are effective July 1, 2026.
| Household Size | Income Limit | Household Size | Income Limit |
|---|---|---|---|
| 1 | $116,300 | 5 | $179,400 |
| 2 | $132,900 | 6 | $192,700 |
| 3 | $149,500 | 7 | $206,000 |
| 4 | $166,100 | 8 | $219,300 |
Income counts all household members 18 and older, with exemptions for documented full-time students, and documented childcare expenses may be deducted. Household debt-to-income cannot exceed 51 percent.
The minimum buyer cash contribution is 5% of annual household income (or more if the first mortgage requires it), and it must be your own documented funds, not a gift or loan.
The title company calculates the exact amount at closing to fund the gap between your minimum contribution and actual settlement expenses, up to the $6,000 maximum.
The loan accrues 5% interest during the first year and nothing after that. There are no monthly payments, and you can prepay in whole or part any time without penalty.
Principal and accrued interest are repaid when you sell, transfer, refinance, default on the first mortgage, or stop occupying the home as your principal residence.
Eligible settlement expenses include title examination and title insurance, transfer and recordation taxes, loan discount points and origination fees, prepaid property taxes and insurance, appraisal and credit report fees, termite and property inspections, location survey, notary and document preparation fees, the homebuyer counseling course, and down payment beyond your required minimum contribution.
The lender must submit a complete SELP file to the county at least 15 business days before closing, including the loan application, SELP addendum, contract, appraisal, verifications, and three years of federal and state tax returns. Miss that window and the closing date slips. Ken builds the SELP timeline into the contract from day one.
SELP eligibility is measured on the day of settlement, not the day you apply. A raise, a new household member, or 90+ days between application and closing can change your status. This is exactly the kind of detail Ken watches so a $6,000 benefit does not evaporate a week before settlement.
SELP is administered by the Charles County Department of Community Services, Housing Authority, 8190 Port Tobacco Road, Port Tobacco, MD, 301-934-9305. Full guidelines at charlescountymd.gov. Also see the Maryland Mortgage Program and Down Payment Assistance options.
No. SELP is a deferred second mortgage. It accrues 5% interest in the first year only, then repayment waits until you sell, transfer, refinance, or stop living in the home.
No. The program is limited to existing homes in Charles County. New construction and FHA 203 loans are excluded.
The required minimum contribution of 5% of annual household income must be your own documented funds, not a gift or loan. Funds beyond that minimum follow your first mortgage's rules.
Possibly. The residency requirement is one year living in the county, or working in the county continuously for the last year at a minimum of 32 hours per week.
Tell Ken your household size, income, and price range. He will tell you whether SELP fits, whether it stacks with other assistance, and what the timeline needs to look like.