Mortgage in Maryland

Maryland has a booming job market and offers proximity to D.C., which means that families can enjoy all the historical monuments and museums that the nation's capital has to offer. As one of the 13 original colonies, Maryland has an important place in U.S. history. Additionally, it's home to the best hospital in the country - Johns Hopkins. With an average home price north of $300,000 , Maryland is slightly above the national average. If you're thinking of moving to this state, use our Maryland mortgage calculator to see how it will impact your budget.

Maryland Mortgage Calculator: What Are My Loan Options?

There are three primary types of mortgages available to Maryland residents, prospective and current.

  • Maryland conventional mortgage: With housing prices above the average, conventional loans are the most common way to finance a Maryland home. If you find a conforming loan, you can put as little as 3% down, have a debt-to-income ratio as high as 50%, and have a credit score of 620. If your home is a jumbo loan, you'll typically need 20% down and a much higher credit score.
  • Maryland FHA mortgage: FHA loans are excellent if you find a home that qualifies for one (there are purchase price limitations). With these loans, you can put as little as 3.5% down and have a credit score as low as 580. If you have 10% down, you could still receive approval with a credit score as low as 500.
  • Maryland VA mortgage: For military veterans and active service members, the VA backs mortgages that require nothing down and have no private mortgage insurance. You will need a 660 credit score and a lower debt-to-income ratio to qualify.

With lower interest rates in the forecast, now is the time to think about making a move! If you need assistance with your down payment, Maryland has programs that can help.

First-Time Homebuyers in Maryland

The Maryland Department of Housing and Community Development has three programs that first-time homebuyers should know about before moving.

MMP 1st Time Advantage

This program has three options: Direct, 5000, and 3%. The Direct version has no down payment assistance but offers more competitive interest rates. The 5000 version provides a $5,000 loan for a down payment and closing costs, as a second 0% interest lien, payable upon the end of the first mortgage. The 3% option offers a second 0% interest lien equal to 3% of the first mortgage.

Eligibility Criteria: Income limitations apply. The home must become the buyer's principal residence.

Flex Loans

Much like the program above, Flex mortgages have five different subtypes:

  • Flex Direct: No down payment, but you can get a mortgage credit certificate, and you'll get the most competitive interest rates.
  • Flex 5000: Comes with a $5,000 loan that acts like a second lien. It's due upon the termination of the first mortgage.
  • Flex 3% Loan: Comes with a loan equal to 3% of the first mortgage as a deferred second lien.
  • 3% Grant Flex: Comes with a grant equal to 3% of the first mortgage that does not require repayment.
  • 4% Grant Flex: Comes with a grant equal to 4% of the first mortgage that does not require repayment.

Eligibility Criteria: The home must become the borrower's principal residence. Income limitations also apply.

SmartBuy 2.0

Targeting students, this program provides up to 15% of the home's purchase price for the borrower to pay off their student debt. The maximum benefit is $30,000.

Eligibility Criteria: The disbursement must fully pay off the student debt for at least one of the borrowers. Also, income limitations apply. Finally, the home must be the borrower's principal residence.

Maryland Mortgage Calculator: Generous Programs Make Homeownership Possible!

Thanks to generous state programs to help with interest rates and down payments, homeownership in Maryland is possible. If you're looking to buy within the state, check out how much you can expect to pay with our Maryland mortgage calculator.

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