Purchasing your first home is daunting, intimidating, and one of the most important decisions you will make in your life. It is a considerable investment, and you need to have an in-depth knowledge of different types of loans and assistance available. Maryland offers a plethora of options for the first-time home buyers to choose from. Here are all the Maryland first-time home buyer programs that you can take advantage to buy your first home.
Maryland Mortgage Program
The Maryland Department of Housing and Community Development offers a more accessible and genial mortgage program for all the first-time home buyers. The program offers a 30-year fixed rate home loan to buyers who have not owned any residential property for the past three years. The program is created explicitly for struggling buyers and offer numerous down payments and closing cost assistance to make the entire process accessible and more reachable. It even includes non-repayable grants which are great news for all the amateur home buyers out there. Some buyers can also avail rate discounts and tax credits, but it depends on the lender.
The Maryland mortgage loan requirements are quite lenient. Your income needs to be under the required guidelines, which is often different for different locations and house sizes. The property needs to be your primary residence, and all your liquid assets need not exceed the limit of 20% of your home’s purchase price. While the program is mostly for first-time home buyers, a repeat buyer may be eligible If the property is located in an economically distressed target area and he meets certain income limits.
Maryland Mortgage Premier
One of the first individual programs under the Maryland Mortgage Program, Maryland Mortgage Premier, is best known for low mortgage rates and significant assistance with down payment and the closing cost. It offers a 30-year fixed rate mortgage with competitive interest rates to all the first-time home buyers in Maryland. Moreover, the buyers can avail a no-interest deferred loan up to $5000 for down payment and closing cost assistance.
One of the best things about Maryland mortgage premier is that you do not have to repay the loan until and unless you make the final mortgage, sell your home, or refinance. Although the income and asset limits are quite strict, it is perfect for homebuyers who cannot afford a reasonable down payment because of limited income and saving.
Maryland Homefront Mortgage
Similar to the federal VA loans, Maryland Homefront mortgage is specifically availed to servicemen and military veterans. It offers a significant low-interest rate discount of 0.25% for a 30-year, fixed rate Maryland mortgage program. Only current and former military members, spouses, and other beneficiaries are eligible to take this loan. It includes all the servicemen in the reserves and national guards as well as any who have been honorably discharged. Although you need to have liquid assets lower than 20% if the purchase price and the income in accordance with the limit, the loan requirements are quite lenient and flexible.
You’ve Earned It Mortgage
For all the first-time home buyers out there, yes, it is the name of a mortgage. Great for homeowners still struggling g to pay their outstanding student loan, You’ve Earned It mortgage offers substantial low mortgage rates and down payment assistance. The loan offers an interest rate discount of 0.2% along with a $5000 down payment assistance for your Maryland first-time home buyer programs. You can even combine its benefits with the Maryland mortgage tax credit program to save some more money. It can help your avail tax savings up to $2,000 annually.
To qualify for You’ve Earned It mortgage, you need to have student debt of at least $25,000. Other requirements include the loan to be strictly in the borrower’s name, and the home to be in one of the sustainable communities. If you do not know what sustainable communities are, they are regions where the government, communities, and businesses coordinate investment for overall sustainable growth. You will have to choose your home from this sustainable community to be approved.
Maryland Preferred Rate Mortgage
Maryland Preferred rate mortgage offers one of the lowest possible interest rates for homebuyers who are looking for an affordable home loan. It is specially created for applicants who lack the savings that one needs for high-interest loans but can afford the day-to-day costs of owning a home. The program allows you to combine it with the Maryland Home Credit tax break and save you some money. Unfortunately, you cannot combine it with any down payment or closing cost assistance. The loan requirements are similar to all the other home loans under the Maryland first-time home buyer programs.
For people who are unable to buy their dream house because of outstanding student loans, Maryland Smart Buy is the right choice. The program allows applicants with more than $1000 of student loans to purchase rehabilitated home under the state of Maryland. Although the program requires you to repay all the outstanding student loan by closing, you also get to avail 15% of the home’s purchase price for the student loan repayment purposes. Maryland SmartBuy also offers low-interest rates and can easily be combined with other upfront financial support programs under Maryland Mortgage programs. Know more to get approved today!
4% Grant Assist
The 4% Grant assist allows you to receive 4% of the mortgage amount to put in as the down payment or even use it for the closing cost. Home buyers who are getting the advantage any of the programs mentioned above are eligible to enjoy this grant. Not only does this grant assist homeowners in saving money upfront but also helps them contribute to their savings amount for the future. As this fund qualifies as a grant, you do not have to repay the amount. But availing this program will constrict you from utilizing payment assistance grants from any other programmes.
Maryland offers HomeCredit program to make homeownership ever more accessible and affordable. This program allows borrowers to receive an annual federal tax reduction or tax credit which is equivalent to 25% of your mortgage interest and up to $2,000 a year. Homeowners can claim this credit every year and save tens of thousands of dollars of their loan amount. You do need to pay a standard fee to the state and the lender, but the benefits are more than worth it.
Before you start your home buying process, make sure you analyze and understand all your options before choosing the one that best suits your needs. Hire an expert and get professional help. Know more to get intricate information on Maryland first-time home buyer programs.