Maryland Down Payment Assistance Programs
The Maryland Mortgage Program is designed to make it easier for first-time Homebuyers to purchase a new home. When the dream of owning a home feels out of reach, Maryland State Housing programs get you there with lower down payments and more affordable monthly payments. Maryland Mortgage Programs are designed for a variety of buyers with different needs.
The programs include:
The 1st Time Advantage 5% DPA
First time homebuyers may be eligible for a Down Payment Assistance (DPA) loan equal to 5% of the first mortgage in a zero percent deferred second lien. In addition, 1st time advantage loan offers competitive interest rates for FTHB.
Similar to the 1st Time Advantage loan, Flex Includes down payment assistance in the form of a non-interest loan that must be repaid or a grant. This program is open to repeat buyers and has competitive 30-year fixed rates.
Down Payment Assistance for the disabled. A conventional loan product provides up to 95% LTV in a first lien and up to 25% (max $45,000) in a second lien to assist with down payment and closing costs.
6% Down Payment Assistance Loan for borrowers at or below 50% of Area Media Income. The HomeStart loan comes with 0% interest and a 30-year deferred down payment loan equal to 6% of the Maryland Mortgage total loan amount (first lien).
Maryland SmartBuy 3.0
This loan is for borrowers with at least $1,000 in student loan debt. The SmartBuy 3.0 program can help you get a mortgage and pay off that debt in one transaction. The amount you can apply to student loan debt payoff is up to 15 percent of the home’s purchase price with a cap of $50,000. This is a zero-interest forgivable loan after five years.
In addition to the requirements by program, all Maryland Mortgage Programs generally require that borrowers purchase a primary residence and not own another residence. The home is required to be within the Maryland purchase price limits, which vary depending on location. Income limits also require that the combined household income of all adults living on the property does not exceed Maryland Limits.
Credit Score minimums are as follows:
- Conventional loans-640-680 depending on DTI and LTV
- FHA Loans-640
- VA and USDA Loans-640
Maryland Mortgage Down Payment assistance loans offer credit-worthy borrowers an affordable home financing option. Additional eligibility requirements may exist, and a consultation with one of our licensed loan officers to discuss your eligibility is required.