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Maryland FHA Mortgage

Maryland FHA Mortgage - Learning Center.

Maryland FHA Mortgage and Maryland FHA refinance home loans are insured by HUD and are available to help promote home ownership. FHA mortgages are home loans insured by HUD. The FHA mortgage is designed to encourage home ownership through a government insured loan. Most FHA loans only require a 3.5% down payment on purchases and allow for up to 85% cash-out on refinances. FHA requires an insurance premium be added to the loan amount and payment. General income, credit and asset requirements are set by FHA. Individual Lenders may also require additional information. You can learn more at FHA’s/HUD’s Q&A on FHA mortgages on their website.

Understanding a Maryland FHA Home Loan.

Below is some information that will helps determine whether or not you can utilize a FHA mortgage to purchase or refinance your home.

Understanding your income when using an FHA home loan:
Borrowers should have a full two years history. Higher education may be used in lieu of a full 2- year history. Job changes are “ok” if you have stayed in a similar field and as long as there have been no job gaps greater than 6 months in the last 2 years. 30 days of pay stubs will be needed when applying for the loan. Self-employed Borrowers or Borrower who need to use Overtime, Bonus or Commission income generally will have to show 2 years of those earning in qualifying.

Understanding your reserves when using a FHA home loan:
Additional reserves, funds over and above money needed at closing, may assist in the approval process. Funds for closing or reserves should not be cash on hand. All money should be ‘seasoned’, meaning already in your existing checking, savings, money market or retirement account for 60 days.  

Understanding your credit when using a FHA home loan:
Generally, a credit history of 3 open and active credit lines in good standing opened greater than 12 months ago is recommended. You credit score maybe used in determining your eligibility. A minimum credit score of 580 is recommended*. 

Understanding the property requirement when using a FHA home loan:
The property must be appraised by an FHA-approved appraiser and meet FHA requirements. 

*Credit Scores below 600 have add’l requirements. 
The loan limits vary dependent on the property locations.

Common documents needed when utilizing a Maryland FHA Mortgage loan.

Copies of your most recent 2 yrs W2’s for all qualifying Borrowers.
Copies of most recent 30 days of paystubs. 
Most recent 2 months of Bank statements (or most recent quarterly statement if applicable).

For refinances - Copy of your current homeowners insurance policy with the agents name and contact number.

Here are some simple steps to follow for first time Maryland home buyers:

  1. Gather the necessary documents (listed above ‘Common Documents’)
  2. Search out the Maryland FHA loan limits in your area.
  3. Now you are ready to get your first time home buyer advice direct from a loan officer. Take all the information you have and consider getting a credit report. Then request a rate quote.

Maryland 2025 FHA Home loan limit broken down by Maryland Counties and Cities.

List of Services

LTV’s of up to 96.5% for FHA loans. FHA 580 FICO - Credit score below 600 requires Automatic Underwriting System (AUS) approval. Fixed rate loans only. W2 transcript option not permitted.