The Maryland Mortgage Program

Buying a home is a huge decision to make. It’s most likely going to be the biggest purchase that you make in your entire life, after all. However, there are many benefits to becoming a homeowner – homeownership provides stability, more control over the way you live and the potential to build wealth and equity.

If you’ve made the decision to become a homeowner, then you’re probably going to need to take out a mortgage. Very few homebuyers have the ability to purchase property out of pocket. Because of this, you should take a look at the Maryland Mortgage Program.

What is the Maryland Mortgage Program?

The Maryland Mortgage Program is a home loan program designed specifically for first-time homebuyers in Maryland. It allows buyers to take out a safe and secure loan from the state’s Housing Finance Agency, and it provides a number of benefits that you may not get with other home loans. These benefits include the following:

  • Down Payment Assistance – Saving up enough money for your down payment can be quite difficult. Typically, down payments are between 5 percent and 20 percent of the home’s cost. The more you can pay, the less interest you’ll end up paying on your monthly mortgage payments. However, even 5 percent of a home’s cost is usually a substantial chunk of money. The Maryland Mortgage Program provides deferred loans of $5,000 from the state along with additional assistance from partner organizations – interest-free to boot!
  • Closing Costs Assistance – Many first-time homebuyers are unaware of the fact that there’s more to pay for then just the down payment. There are a number of additional costs they will have to pay at closing, from attorney fees to the appraisal cost and more. Closing costs are typically between 2 and 5 percent of the home cost, and the program provides assistance with paying them.
  • Competitive Interest Rates – The program provides a 30-year fixed rate deal with interest rates that are competitive with commercial lenders and are often even lower. Because it’s a fixed rate, you’ll know exactly how much you’ll have to pay every month, and for how long.
  • Homebuyer Education – First-time homebuyers will want to look at their homebuyer education class, which teaches homebuyers how to budget for a new home as well as everything that you need to know about monthly finances.

Do You Qualify?

The following are the requirements to qualify for the Maryland Mortgage Program:

  • At least one of the applicants must a be first-time homebuyer, which means you have not owned property anywhere in the last three years. There are some exemptions for veterans.
  • The house being bought must be a primary residence.
  • You must take the Homebuyer Education course.
  • Your liquid assets must equal 20 percent or more of the sales price.

If you are a first-time homebuyer, then you should strongly consider applying for the Maryland Mortgage Program. For more information about the Maryland Mortgage Program and how to apply, be sure to contact Alex Echeandia today.

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