Here's what nobody warns first-time home buyers about in Charles County: it's usually not the down payment that kills the deal — it's the closing costs, thousands of dollars due at the table that catch people completely off guard. There's a county program that gives you up to $6,000 to cover exactly that, and almost nobody applies because almost nobody knows it exists. I'm Ronnie Gilmer, a REALTOR® with Samson Properties serving Maryland and Washington, DC, and below I'll break down how the Settlement Expense Loan Program works and whether you may qualify. One thing up front, because I won't oversell it: this is not free money — it's a deferred loan. You don't make monthly payments on it, but you settle up when you sell or refinance.
What is the Charles County Settlement Expense Loan Program (SELP)?
SELP is run by the Charles County government and provides up to $6,000 (current as of 2026) toward settlement and closing costs — title insurance, transfer and recordation taxes, prepaid property taxes and insurance, the appraisal, inspections, origination points: the stack of fees that hits you at closing. It solves the cash crunch that stops buyers from getting to the table, which is exactly where most Charles County deals fall apart.
How the loan actually works
The assistance is recorded as a second mortgage on your home, but you make no monthly payments on it. It charges 5% interest in the first year only, then 0% after that, and nothing is due until one of these happens: you sell, you refinance, you transfer the property, or you stop living in it as your main residence. You can also pay it off early at any time with no penalty. Think of it as a bridge — it gets you to the closing table now, and you square up down the road when you have equity working for you.
Who qualifies for SELP?
You need to be a first-time buyer under the county's specific definition — you haven't owned a home in the previous three years, with exceptions for divorce, death of a spouse, or currently owning substandard housing — and you can't own other residential property. You also need a Charles County connection, and this is the part people miss: either you've lived in the county for at least one year (proven with your tax return) or you've worked in the county at least 32 hours a week for the past year. That work option is big — a lot of people commute in and don't realize they qualify. On income, your household must be at or below 100% of area median income, scaled by household size — for a family of four that's about $166,000 (current as of 2026), which reaches far more working households than people assume. A few more boxes: your leftover liquid assets after buying can't exceed 15% of your income, your debt-to-income ratio must be under 51%, you need a fixed-rate mortgage (no adjustable-rate loans), and you'll complete a HUD-approved homebuyer counseling course. One real limitation: it's for existing homes only — new construction does not qualify. Final approval is always subject to lender and county review.
How to apply — your lender does the heavy lifting
First, get with a participating lender — the county keeps a referral list, and not every lender is on it; I can point you to one. Second, knock out your HUD-approved homebuyer course and get the certificate. From there, your lender pre-qualifies you for the mortgage and the SELP loan at the same time and submits the application to the county 15 days before your closing. The county reviews and approves, and the funds are at your closing table. A first-hand tip: funds are limited and budgets reset, so if you're buying in the next 6 to 12 months, start the conversation now — and before you tour anything, run the free Buyer Program Checker to see what else you might stack.
Stacking SELP with state down payment help
SELP covers your closing costs, but you may also be able to layer it with Maryland's state down payment assistance through the Maryland Mortgage Program to help with the down payment itself. The right number depends on your loan, so ask your lender to run you for both — the county program plus the state assistance — so you're stacking every dollar you're entitled to.
Key takeaways
- Up to $6,000 (current as of 2026) toward closing costs in Charles County — a deferred second mortgage with no monthly payments: 5% interest in year one only, then 0%.
- Repaid only when you sell, refinance, transfer, or stop living in the home; prepay anytime with no penalty.
- First-time buyers (not owned in 3 years) with a county connection — live there 1+ year OR work there 32+ hours/week for the past year.
- Income at or below 100% of area median income (family of four: about $166,000), DTI under 51%, fixed-rate loans only, existing homes only.
- Your lender submits to the county 15 days before closing — participating lender + HUD course first, then house hunt.
Frequently asked questions
Do I make monthly payments on the SELP loan?
No. It sits in the background as a second mortgage with no monthly payment — 5% interest in the first year only, then 0% — and comes due only when you sell, refinance, transfer the property, or stop living there. You can pay it off early anytime with no penalty.
I work in Charles County but live elsewhere. Can I still qualify?
Yes — that's the option most people miss. Working in the county at least 32 hours a week for the past year satisfies the county-connection requirement, even if you currently live outside Charles County.
What does SELP money actually cover?
Settlement and closing expenses: title insurance, transfer and recordation taxes, prepaid property taxes and insurance, the appraisal, inspections, and origination points. It's aimed at the fees due at the table, while state programs like the Maryland Mortgage Program can help with the down payment itself.
Can I use SELP on new construction?
No — SELP is for existing homes only. If you're buying new construction, ask about other Maryland and county options; a participating lender can map out which programs fit your build.
See if you may qualify
Ready to find out what you may be eligible for? Start with Check My Buyer Eligibility, run the free Buyer Program Checker to see which programs might fit, or Book a Free Consultation and I'll help you get with a participating lender and map out your closing.
Last updated: August 2026. Program details change frequently — verify current guidelines with a licensed lender and the county; this is not a commitment to lend or a guarantee of eligibility. Ronnie Gilmer · Samson Properties · Serving Maryland & DC · Not affiliated with any government agency or the Maryland Mortgage Program.