MarylandLending.com

Maryland First Time Home Buyer Loans


Maryland First Time Home Buyer Programs

2017 Maryland First Time Home Buyer Programs & Loans

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 by promoting banks to lend and having the government insure the loan. Most FHA loans only require a 3.5% down payment on purchases and allow for up to 85% cash out on refinances. There is usually a insurance premium attached to the loan. Income, credit and asset requirements are set by general guidelines and also by the actual lending institution. You can learn more at FHA’s/HUD’s Q&A on FHA mortgages on their website.

Understanding a Maryland first time home buyer programs.

First Time Home Buyer Programs - Maryland
The most common Maryland program for first time buyers is the MMP (Maryland Mortgage Program).

MMP Maryland Mortgage Program:
This program is provided through the State of Maryland and can only be done by an approved program lender. This program is available to all regions within Maryland. It is available to first time home buyers with Maryland which included those who have not owned ia home within the previous 3 years or are relocating to the state.

This program is a second mortgage attached to the property. The loan amount is up-to $5,000 and the money can be used for down payment and/or closing cost. The second mortgage does not have an interest charge but remains attached to the home until paid back.

Triggers to pay back this loan would include, sale of the house, refinance of the property, change of owner on title of the property, if the borrower no longer uses the property as a primary residence.

Prior to writing any offer on a property a MMP borrower must attend and complete a MMP first time buyer course. This course will have to be done by an approved program educator.

Get mortgage rate quotes for Maryland mortgage programs

Community Development Block Grant Home Buying Program:
The CDBG is available in several specific locations within Maryland. It is a first time home buyer grants in Md and it is made available to families with income at or below 80% of area median income ($44,750 individual, $63,900 family of four). The amount of the Maryland grant is $5,000 and can be used as down payment and/or closing cost assistance.

There is a course requirement. Depending on the jurisdiction, a course may or may not be required prior to entering into a contract to purchase a new home. This course will have to be done by an approved program educator.

House Keys 4 Employees Home Buying Program:
House Keys 4 Employees, is a employer partnership deigned to assist the borrower(s) with home buying assistance up to $2,500 max (match).
This program availability varies depending on location and employer. In order to determine if you can utilize this program you should contact your employer's Human Resources Department to determine if assistance is available.

CPIP Community Partner Incentive home buying program:

DHCD (Department of Housing and Community Development) will match contributions dollar-for-dollar, up to $2,500, toward down payment and closing costs from participating Community Partners. 

BDIP Builder Developer Incentive home buying program:
BDIP is a 0% percent deferred payment loan through DHCD's Down Payment Assistance (DPA) Program. The builder must be a participating partner in the program in order for them to assist with down payment/closing cost help. You should contact your home builder to see if they are signed-up to participate with this program.

BRAC Base Realignment and Closure home buying program:

The State of Maryland's created the BRAC Match Program to assist people relocating to Maryland as a result of the 2005 Base Realignment and Closure (BRAC).

The BRAC Match Program allows eligible home buyers who are using a Maryland Mortgage Program loan to purchase a home to receive an additional $2,500 for down payment and/or closing cost assistance. You must be eligible to utilize this program under.

PG County Pathway To Purchase:
This program is only available in Prince George's County Maryland.

The PTP is a first time home buyer grant program for Prince George's County Md. It is up-to $10,000 and is attached as a lien to the tile of the home for the minimum required residency time of 10 years. There is income and baseline credit limits and the borrower must be approved by a lender for a first mortgage.


100% financing programs within Maryland:

Although many of the first time buyer programs above may allow for a home buyer to purchase a home with minimum or no money out of pocket there are several Federal programs that will finance 100% or more of the home's purchase price.

USDA 100% Maryland home buying program:
Federal program

There are many non-metro areas throughout Maryland that are within the USDA 100% financing loan program allowable locations. A USDA loan can only be used for the primary residence and it must be owner occupied.

Although this program is run by the USDA and banks follow the lending guidelines set forth by USDA, banks and lenders may add additional underwriting guidelines.  There are income, credit and reserve requirements. The USDA requires that a household income may not exceed 115% of the area's median income. Property eligibility is determined by the USDA and most eligible property are located outside major metro areas.

VA 100% Maryland home buying program:
Federal program


There are many non-metro areas throughout Maryland that are within the USDA 100% financing loan program allowable locations. A USDA loan can only be used for the primary residence and it must be owner occupied.

Although this program is run by the USDA and banks follow the lending guidelines set forth by USDA, banks and lenders may add additional underwriting guidelines.  There are income, credit and reserve requirements. The USDA requires that a household income may not exceed 115% of the area's median income. Property eligibility is determined by the USDA and most eligible property are located outside major metro areas.

Common documents needed when utilizing a home loan program.

Original pay stubs for the previous month - but you should save at least the last 3 months.
Copies of your W2 for the last 2 years - be sure you have them for all borrowers on the loan.
For refinances - Copy of homeowners insurance - if you use a specific agent you should have their contact information available for the lender.
Copies of asset information - such as proof of money for closing costs  (if needed), 3 months worth of statements from your savings & checking accounts and investment records for mutual funds, stocks, bonds or other liquid investments.
Share by: