First Time Home Buyer Maryland

First Time Home Buyer Loan Program Benefits

  • FHA Home Loan FICO 580 Only 3.5% Down
  • FHA Loan Grant of 3.5% (100% Financing)
  • HomeReady Loan Only 3% Down
  • Fast Close!  17 Days!
  • Down Payment Can Be Gifted
  • If you have not purchased a home in 3years
  • Single family, Multi-family, Ground up Construction, Jumbo and Non QM Loans

HOME LOAN APPLICATION
CLICK HERE 

Features of First Time Home Buyer Loan Programs in Maryland

First time home buyer maryland

First-time home buyers in Maryland have access to a variety of programs and incentives designed to facilitate the home buying process and make it more affordable. These programs are tailored to meet the needs of those who are purchasing a home for the first time or have not purchased a home in 3 years. Here are some key features of first-time home buyer programs in Maryland:

Helping More Families to Move into their First Home in Maryland! You can be next. Apply Now.

 

Qualify Now for your free quote:



  • Competitive Interest Rates: First-time home buyer programs in Maryland often provide access to mortgage loans with competitive interest rates. These rates are typically more favorable than those available through traditional mortgages, making homeownership more affordable.

     

  • Closing Cost Assistance: Maryland programs may also offer assistance with closing costs, which can be a significant financial burden for first-time buyers. This assistance helps reduce the out-of-pocket expenses associated with closing on a home.

     

  • Tax Credits: Maryland offers various tax credits for first-time home buyers. These credits can provide substantial savings on your state income taxes, helping to offset the costs associated with homeownership.

     

  • Education and Counseling: Many programs require or strongly encourage first-time buyers to complete homeownership education and counseling. This education equips buyers with the knowledge and skills needed to make informed decisions and navigate the home buying process successfully.
  • Income Eligibility: Some programs have income limits, ensuring that assistance is directed to those who need it most. Eligibility criteria vary depending on the specific program, but they often take into account factors like household income and family size.

     

  • Purchase Price Limits: Some programs may have limits on the purchase price of the home. These limits are in place to ensure that the program’s benefits are directed toward affordable homes.

     

  • Support for Specific Groups: Maryland may offer targeted programs for specific groups of first-time buyers, such as veterans, teachers, or public safety employees. These programs provide additional benefits and incentives.

     

  • Flexibility: Maryland’s first-time home buyer programs are flexible and can be combined with other mortgage programs. This allows buyers to explore various options and find the best fit for their individual needs.

     

  • Homeownership Counseling: Buyers may be required to participate in homeownership counseling to ensure they understand the responsibilities and financial aspects of owning a home.

Maryland’s first-time home buyer programs teamed with CambridgeHomeLoan.com aim to remove the barriers that often deter individuals and families from entering the housing market. By providing education, and favorable terms, these programs empower first-time buyers to achieve their homeownership goals. The combination of down payment and closing cost assistance, competitive interest rates, and tax credits makes buying a home in Maryland more attainable for those entering the real estate market for the first time.

HomeReady Mortgage
Low down payment HomeReady® 

Mortgage is designed to help lenders confidently serve today’s credit-worthy low-income borrowers.

HomeReady is a low downpayment home buyer program that allows for just 3% down. Credit scores however are higher than FHA with starting requirements for a FICO at 620  vs 580. 

Borrowers with credit scores of 680 or more can potentially receive better rates.  Cash for down payment can come from multiple sources including grants, gifts and community seconds with no minimum requirement to use your personal funds.

The Home Ready® program requires you to take a quick class in home ownership. You can check  the education requirements HERE. and offers very competitive rates. Starting at just 3% Down.

Contact us today for more information on fha loans, VA Loans, Home Ready and First Time Home Buyer Programs.

Welcome to the first time home buyer Maryland home loan assistance program information page. We understand that the normally the home buying process may be complex. We are here to help find out the loan programs and assistance that may be available for you. Complete a few questions below to see if you can get matched with a program that fits your needs.

Why Maryland Is Rapidly Growing as the Destination for First-Time Home Buyers?

Maryland is emerging as a favored destination for first-time home buyers, and several factors are contributing to this rapid growth in the state’s real estate market. Here are the key reasons behind Maryland’s popularity among those looking to purchase their first homes:

  • Robust First-Time Homebuyer Programs: Maryland offers a range of first-time homebuyer programs designed to make the home buying process more accessible and affordable. These programs often include financial assistance, low-interest loans, and down payment grants. Such initiatives encourage first-time buyers to take the plunge into homeownership.
  • Strong Economy and Job Opportunities: The state’s strong and diverse economy, driven by sectors such as healthcare, technology, and government, provides ample employment opportunities. Stable job markets and a range of industries ensure that First Time Home Buyers and their families have the financial stability needed to invest in a home.
  • Quality Education and Schools: Maryland boasts a robust public education system, with numerous top-rated schools and universities. First Time Home Buyers often seek out areas with good schools, making Maryland an attractive choice for those with children.
  • Proximity to Major Cities: Maryland’s strategic location, neighboring major cities like Washington, D.C., and Baltimore, makes it an ideal choice for those who want access to urban amenities while enjoying suburban or rural living. This proximity provides job opportunities, cultural attractions, and entertainment options.
  • Diverse Housing Market: Maryland’s housing market is diverse, offering various options from urban condos to suburban single-family homes. This diversity accommodates a wide range of budgets and preferences, making homeownership accessible to many.
  • Beautiful Natural Landscapes: The state is known for its scenic beauty, with a wide variety of landscapes, including the Chesapeake Bay, picturesque coastlines, and the Appalachian Mountains. This appeals to nature enthusiasts and those looking for a serene and aesthetically pleasing environment.
  • First-Time Homebuyer Tax Credits: Maryland offers state-specific tax credits for first-time home buyers, reducing the financial burden associated with homeownership. These credits are valuable incentives for those looking to invest in their first homes.

FHA LOAN FAQs Everything You Want To Know About an FHA Loan Maryland

An FHA loan is a mortgage insured by the Federal Housing Administration, designed to make homeownership more accessible to a wider range of borrowers by offering lower down payment requirements and more lenient credit qualifications.

The Maximum debt-to-income (DTI) ratio varies based on overall credit history and assets.  Typically, the DTI cannot exceed 45% of the borrower’s gross income.  However, in some cases borrowers with as high as 54.9% DTI may be eligible and in other cases borrowers may be capped at 43% DTI. Due to our volume size we can allow for higher DTI which enables you to receive a higher loan amount even if you have significant debt. 

FHA loans typically require a down payment of as low as 3.5% of the purchase price. This makes them an attractive option for buyers who may have limited funds for a down payment.

While FHA loans in Maryland are more forgiving of lower credit scores than conventional loans, a credit score of 580 or higher is generally required for a 3.5% down payment. Those with lower credit scores may still be eligible but may need to make a larger down payment.

Bankruptcy does not automatically disqualify a borrower from receiving an FHA loan Florida. If your bankrupcy was discharged 2 years ago you may be eligible today for an FHA loan program. If you bankruptcy was discharged less than two years ago and you have extenuating circumstances you might still be eligible to qualify.  You can find out more by applying here!.   Same rule applies for borrower with chapter 13 bankruptcy.

A chapter 13 has some different requirements as a chapter 13 bankruptcy may still qualify if the  lender is willing to do a manual underwriting and the borrower has a satisfactory history of payments under their Ch 13 plan.

A Bankruptcy does not automatically disqualify a borrower from receiving an FHA loan. If your bankruptcy was discharged 2 years ago you may be eligible today for an FHA loan program. If your bankruptcy was discharged less than two years ago and you have extenuating circumstances you might still be eligible to qualify.  You can find out more by applying here!.   Same rule applies for borrower with chapter 13 bankruptcy.

Borrowers with student loans that are in deferment or not fully amortized will be required to calculate 1% of the outstanding balance as minimum monthly payment that will be added in their debt-to-income ratio (DTI) calculation.

FHA loans typically require a down payment of as low as 3.5% of the purchase price. This makes them an attractive option for buyers who may have limited funds for a down payment.

Delinquent child support must be paid current or in a payment plan.

 

For non-medical collection accounts when the cumulative outstanding balance is greater than $2,000 borrower may either pay-off the balance or, for the purpose of debt-to-income ratio (DTI), provide proof of a payment plan. If neither are an option, the lender must use 5% of the outstanding balance and include it in the borrower’s DTI calculation.

Borrowers with delinquent tax debt are ineligible unless currently in repayment plan. Repayment plan tax liens are not required to be paid in full if documentation is provided indicating the borrower is in a valid payment plan.

The following is required:

  1. The borrower must have made a minimum of 3 months of scheduled payments and documentation of the payments is required.
  2. The payment must be included in the DTI / Debt to income calculation.
  3. The borrower cannot prepay the payments to meet the 3-month payment requirement NOTE: Borrowers with delinquent taxes may or may not have a tax lien. Borrowers currently in a repayment plan, and the IRS has not filed a tax lien, are not required to meet the minimum 3-month payment requirement. The payment to the IRS will be included in the DTI calculation.

For non-medical collection accounts when the cumulative outstanding balance is greater than $2,000 borrower may either pay-off the balance or, for the purpose of debt-to-income ratio (DTI), provide proof of a payment plan. If neither are an option, the lender must use 5% of the outstanding balance and include it in the borrower’s DTI calculation.

FHA loan limits in Maryland can vary by county. It’s essential to check the specific limits for the area you are interested in, as they can change annually. These limits determine the maximum loan amount you can borrow using an FHA loan.

FHA loans can be used to purchase single-family homes, condominiums, townhouses, and multifamily properties (up to four units) as long as you intend to live in one of the units as your primary residence.

Charge-off accounts are not included in borrowers’ debt.

 

To apply for an FHA loan in Maryland, you can start by filling out an application by Clicking Here. A local FHA-approved lender or mortgage broker who can guide you through the application process will reach out and help walk you through the process. You’ll need to provide financial documents, such as pay stubs and tax returns, as part of the application.

Residents in cities such as Baltimore, Frederick, Gaithersburg, Hagerstown, Anne Arundel, Baltimore County, Howard County, Montgomery County, and Prince George’s County have access to various homebuyer assistance programs tailored to each specific location.

In Baltimore, there are multiple incentive programs available for first-time homebuyers to help with down payment and closing costs through the Baltimore City Department of Housing & Community Development. Frederick offers the Community Partners Incentive Program, providing assistance to first-time homebuyers with down payment and closing costs. Gaithersburg residents can participate in programs like the Gaithersburg Homebuyer Assistance Loan Program for help with down payment and closing costs. Hagerstown residents may benefit from the Hagerstown Homeownership Program, offering financial assistance to qualified buyers. Anne Arundel County features the ACDS Mortgage Assistance Program, providing deferred loans to first-time homebuyers for down payment and closing costs.

In Baltimore County, the Settlement Expense Loan Program supports low- and moderate-income, first-time homebuyers with closing costs. Howard County offers the Settlement Down Payment Loan Program for assistance with down payment and closing costs. Montgomery County presents the Closing Cost Assistance Program through the Housing Opportunities Commission for eligible homebuyers.

Prince George’s County features the Purchase Assistance Program with financial aid for down payment, mortgage principal reduction, and closing costs. Special assistance may be available for certain professionals like police officers, teachers, and nurses.

Residents in cities such as Baltimore, Frederick, Gaithersburg, Hagerstown, Anne Arundel, Baltimore County, Howard County, Montgomery County, and Prince George’s County have access to various homebuyer assistance programs tailored to each specific location.

In Baltimore, there are multiple incentive programs available for first-time homebuyers to help with down payment and closing costs through the Baltimore City Department of Housing & Community Development. Frederick offers the Community Partners Incentive Program, providing assistance to first-time homebuyers with down payment and closing costs. Gaithersburg residents can participate in programs like the Gaithersburg Homebuyer Assistance Loan Program for help with down payment and closing costs. Hagerstown residents may benefit from the Hagerstown Homeownership Program, offering financial assistance to qualified buyers. Anne Arundel County features the ACDS Mortgage Assistance Program, providing deferred loans to first-time homebuyers for down payment and closing costs.

The Chenoa Fund offers a 3.5% grant to home buyers with low to moderate income.

In Baltimore County, the Settlement Expense Loan Program supports low- and moderate-income, first-time homebuyers with closing costs. Howard County offers the Settlement Down Payment Loan Program for assistance with down payment and closing costs. Montgomery County presents the Closing Cost Assistance Program through the Housing Opportunities Commission for eligible homebuyers.

Prince George’s County features the Purchase Assistance Program with financial aid for down payment, mortgage principal reduction, and closing costs. Special assistance may be available for certain professionals like police officers, teachers, and nurses.


Expert Home Loan Mortgage Information

DSCR Loans Florida

Home DSCR Loans in Florida and around the US with a Fix and Flip Loan and DSCR Loan Florida from CambridgeHomeLoan.com.

Read More »
ultimate guide to dscr loan

Ultimate Guide To DSCR Loans

Home The Ultimate Guide to DSCR Loans: Everything You Need to Know Introduction When it comes to real estate investment, finding innovative financing solutions is

Read More »

Whether you are a first time home buyer Maryland, looking to refinance your home, cash out or purchase your first investment property this expert home loan blog should help. If you are in need of a mortgage calculator Click Below.

Baltimore County

  • Carney
  • Catonsville
  • Dundalk
  • Glenarden
  • Essex
  • Hampton
  • Lansdowne
  • Owing Mills
  • Parkville
  • Rosedale

Anne Arundel County

  • Annapolis
  • Arnold
  • Crofton
  • Deale
  • Edgewater
  • Ferndale
  • Fort Meade
  • Glen Burnie
  • Maryland City
  • Severn

Frederick County

  • Brunswick
  • Frederick
  • Burkittsville
  • Emmitsburg
  • Middletown
  • Walkersville
  • Woodsboro
  • Ijamsville
  • Knoxville
  • Ladiesburg
  • Lewistown
  • Buckeystown

Calvert County

  • Calvert Beach
  • Dunkirk
  • Owings

Caroline County

  • Berwyn Heights
  • Bladensburg

The First time home buyer program you can be approved with a FICO of 580 and only 3% down. Closing costs can be a seller contribution.