• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar

Annapolis Mortgage

SPEAK WITH A MORTGAGE EXPERT: (877) 421-0437

  • Home
  • Government Programs
    • FHA Loans
    • VA Loans
  • Conventional Programs
  • Buy a Home
  • Refinance
  • Contact

Tyler Plack

Important Tips: Dos & Don’ts for the First Time Home Buyers in Maryland

September 26, 2018 By Tyler Plack 2 Comments

Your home is one of your most prized possessions. For the first time home buyers in Maryland, this article can prove to be very informative and useful. If you are one of the first time buyers, then there are certain important aspects which you need to take care of. The fact of the matter is that your home is the most precious asset of yours. You must have dreamt of having a dream home for a long time and did all you could do to get hold of the required fund. Now that you are ready to get one, you need to be sure that you have taken the right decision and have made every single penny of your worth.

What do the First Time Home Buyers need to know?

As someone who is looking to buy a home for the first time in Maryland Region, there are certain important aspects which you need to take into consideration. Here are a couple of useful tips which you might find to be useful.

  • Buyer’s Agent: Most of the times, people are reluctant to opt for a buyer’s agent. One of the reasons is their lack of understanding of how an agent operates in the entire process. An agent plays a significant role in the whole episode. He has the experience and is aware of the ins and outs of the entire fraternity. It is an agent who would help you to narrow your search down based on your budget, locality, and other preferences. Once you deploy an agent, he would be obliged to represent you legally.

One of the most important reasons as to why you should opt for an agent is because he would make this entire process hassle-free for you. It would be his responsibility to negotiate the contracts and facilitate the entire process of home buying for you. When it comes to buying a new home, it involves lots of steps and processes like arranging for a packer and mover, fixing an attorney, arranging for the inspectors and others. It is your agent, who would take care of the entire arrangement for you. An agent is indispensable for to this entire process.

  • Mortgage Professional: When it comes to acquiring a new home, it can be a daunting and stressful endeavor. However, things can turn out to be a bit easy for you if you have an experienced and competent mortgage broker by your side. The main responsibility of the broker would be to assist you with different types of financial matters, especially the one pertaining to loans. He would educate and guide you about the different kinds of loans to can have access to. These are very vital and pertinent information to have when you are planning to buy a new home. Once you are armed with all the required information, the thing would turn out to be far easier for you. 

Ideally, it is your agent who should arrange for a reputed and experienced mortgage broker for you. One of the primary duties of the broker is to investigate your financial background and ensure that you are looking for a new property within a price range that would suit you. There is another important reason as to why a mortgage broker is important. You can acquire a pre-approval letter from him. This letter would help you to avoid disqualifications at the last minute.

  • Find your Dream Home: it sounds easy to go out and find your dream home. However, there are a couple of blunders which you are likely to commit to being a first-time buyer. With the image of your dream home in your mind, you would think of finding the “perfect home”. However, as a first-timer, you must understand that finding a “perfect home” can be very difficult. This is particularly true if you have a budget constraint.

There isn’t any checklist available which would help you in finding your dream home. It’s all about your imagination and vision. Besides, you should also have the ability to improvise and make use of the property to good effect.

  • Go for a Contract: This is another reason as to why it is absolutely essential to have a buyer’s agent, especially if you are one of the first time home buyers in Maryland. The agent can run a thorough search of the market, particularly in the region where your home is located at. This means that they would carry out extensive research on the existing market price of the home in that area.  

With this information under your belt, you can easily decide on the amount you wish to offer for the property. While buying a home, it is very important to have good negotiating skills. In case of certain new buyers, they expect to get a discount of a certain percentage out of the quoted price, which is not always realistic. If the price of the property is reasonable in terms of the existing market price, in that case, there are virtually no chances of negotiation.

  • Hiring an Inspector: When it comes to buying a new home, a full and thorough inspection needs to be carried out. Inspection at times can be quite expensive; however, it is worthwhile spending that amount of money.  A property can look to be very attractive and appealing at the first go; however, there can be numerous underlying issues which might cause you serious concerns in the days to come. In order to avoid such unnecessary stress, it is absolutely imperative that you carried out a proper inspection before finalizing the deal.

If any serious issues surface during the inspection, then the agent of the buyer can push the seller to fix them before closing the deal. If the issues are complex and too much time to consume to be fixed quickly, in that case, you should consider yourself to be lucky. Being a new buyer, it can be difficult for you to get hold of an experienced and reputed inspector. Your agent would help you find one.

Arranging Finance for the First Time Home Buyers In Maryland

While purchasing a new home, there can be numerous obstacles one may have to encounter, especially the new buyers. If you are applying for a mortgage in Maryland, then there are certain factors which you need to be aware of. Basically, there are four of them.

  • Collateral: In case of purchasing a home for the first time, there isn’t too much collateral to be worried about. Typically, the price of the home would be on par with the market value; therefore, there is very little collateral one needs to deal with. It is the lender who has an increased risk in the entire transaction.
  • Capacity: This basically signifies the ability of the buyer to repay the mortgage. Determining the debt-income ratio is the first step in this process. All the monthly debts will be taken into consideration and they will be divided by the monthly income of the borrower in order to determine the debt to income ratio. The job history of the borrower is also looked at while determining the capacity. It is seen whether the buyer is a frequent hoper from one job to another or not. If he is, in that case, he could be a high-risk candidate.
  • Capital: The liquid asset of the borrower is also taken into consideration. Various factors like stocks, I.R.A, bonds, savings and checking account balances are being looked into while determining the capital. The sum total of these accounts is known as reserves. In case of standard mortgage lending, six months reserve has become a standard.
  • Character: Prior mortgage history plays a major role in determining your chances of obtaining one. Since you are a first-time buyer, you are a spot of bother as there are no background data to check with. In that case, it is your rental history that would be taken into account. It is your credit history that would be extensively scrutinized in order to determine your character.

What to Look for?

If you are buying for the first time, in that case, it can be a bit tricky for you to figure out the ideal home for you in Maryland, as there are so many different options available. However, if you have a clear picture in your mind as to how your dream home should look like and what the ideal location should be, in that case, things can be a bit easier for you.

  • Location: This is the most important aspect which you need to take into consideration while looking for a new home. What sort of location are you looking for? Do you prefer a buzzing and happening neighborhood or would you like it to be quiet and peaceful? It all depends on your taste and preferences. Besides, you should also take into consideration whether you have easy and quick access to all the basic services.
  • Size: In terms of the size of the property, it is all about your budget and taste. If you are looking for a relatively bigger house, then you should have enough budgets to fit into it. On the other hand, if you feel that an average sized house would suffice in that case you need to make sure that it is big enough to accommodate you and your family.
  • Price: You need to be very careful while finalizing the deal. Make sure that you aren’t paying more than what it deserves.  Therefore, it is very important to have a clear idea and understanding of the existing market price in that locality. Your agent can play an important role in this regard to help you find the best rate.
  • Condition: Even if a house meets the aforementioned criterion, it is not enough to put money on it. You would be investing a huge amount of money and in some cases; it could be your life time-saving. Therefore make sure that the property is in perfect shape in terms of its conditions and you would have to invest virtually nothing on the renovation. The best way to assess the condition of the house is by engaging a civil engineer, who would instantly spot any defects if there are any. 
  • Legalities: This is another significant aspect which needs to be taken care of. When it comes to purchasing a new house, there are various legal formalities and obligations that need to be met. Therefore, it is very important to make sure that you have an attorney who specializes in real estate dealings and would facilitate the process of the transaction for you.

5 Important Tips for First Time Home Buyers In Maryland

If you are searching for a new house in Maryland and this is your first time, then here are a couple of useful tips for you, which you might find handy.

  • Think about the Future: If you are looking for a new home which would match your taste and preferences, in that case, it is absolutely essential for you to take into consideration your future.  Remember, it is not only a financial investment, but at the same time a commitment of time as well. Ideally, you would want to spend the rest of your life in your house for years to come.

At present, you might have a small family, which can encourage you to go to a cottage or something small and cute. However, in the future, if you have kids, in that case, it is not going to suffice. You must have enough provision to accommodate additional members of your family you are most likely to join in.

Your present lifestyle and how it might change in the days to come is an important consideration that needs to be made while purchasing a new house. Always remember that it is a long-term investment, therefore you need to be very careful and the same time wise while selecting one.

  • Realtor: Selecting a good and an experienced realtor is perhaps the most crucial step in the entire process.  A reputed and experienced real estate agent can make things fairly easy for you. These agents are the professionals who know what exactly you are looking for in terms of location, design, and budget.

The real estate agents are particularly important in the case of first-time purchasers. Some of them offer special packages for the first timers by offering special discounts on down payments, special mortgage programs, and tax credits. Some of them even offer cash back rebate to the buyers.

  • The Mortgage Type: What kind of price range you can afford depends on various factors like your debt to income ratio, your credit score. You need to know your budget from the perspective of the lender so that you are not wasting your time on properties which do not fit the lender’s criteria as well as your budget. This is where a seasoned realtor comes into the picture. He can assist you with the process of mortgage pre-qualification, which would make you ready to place your offer on the property and at the same time would enable you to get hold of a loan and close the deal successfully.

There are certain real estate markets where an offer would not even be considered by the seller if the buyer doesn’t have a pre-qualified certificate which is to be provided by a lender. A realtor, who is usually affiliated with different lenders, can help you acquire a pre-qualifier. Moreover, you will be also in a position to negotiate in the selling price of the property.

  • Other Expenses: There are other expenses which need to be taken into consideration along with the monthly payment for your home. As a first time buyer, you might not have thought through it. While preparing the budget, it is important to prepare a list of all the different types of expenses which you might have to incur in the form of repairing and maintenance.

For instance, you might have to make sure that your yard is maintained as per the standards set by the homeowners association. This would mean that you will have to invest a considerable amount of money on lawn maintenance. Besides, there are other recurring expenses like the gas bill, electricity bill and others should also be taken into consideration.

  • Resale Value: While purchasing a new house it is always very important to consider the resale value of the property. There are numerous factors that determine your property’s resale value, like the location, age of the building, its current price and etc.

This is where an experienced realtor comes into the picture. He would be well versed with the area’s resale value and would suggest you the best deal. It is very important that you considered this particular aspect carefully, as it would ensure that you have a fair amount of value to back you up.

Mistakes you must avoid

As a new buyer, you are likely to make some mistakes while deciding on your new home in Maryland. The fact that it is your first time as a buyer, you could allow your impulse to get the better of your senses. You must be very careful while making your choices. There are a couple of common mistakes which you are likely to make as a new buyer. Here are some of them which you avoid.

  • Impulsive Buying: While buying a new house, there are chances that your excitement and greed overpower you. This is what triggers impulsive buying, which can be quite fatal in certain cases. You must make sure that you didn’t take a decision by having a look at one property. You can get attracted by setting your eyes on it, but you never know, there could be far better options that are waiting for you!

Do not ever get tempted by the pictures. This is one big mistake widespread with the new buyers. Before deciding, make sure that you had a physically been to the property and carried out a thorough investigation. There is no problem in going with the property you have set eyes on; however, it is important to ensure that you have made the right choice. This can only be done by following certain steps which have already been mentioned.

  • Being too choosy: You must realize that there is no end to it!!! The more you look, the more you would get confused as there are so many options available to you. Like impulsive buying, being too choosy is equally harmful as you might end up taking a wrong decision. In order to pick the right house, you must have a clear picture in your mind as to what exactly you are looking for. 
  • Exceeding your Budget: This is another common mistake made by the new buyers. You get so mesmerized by a property that you might not hesitate to go beyond your budget. You might be able to arrange for the required funds and eventually acquire the property; however, it is important for you to remember that the extra burden of loan which you had to arrange for in order to get hold of the required funds can bring down severe financial crisis on you in the days to come. Therefore, it is essential that you stuck to your budget, a slight deviation is always welcome; however, it shouldn’t be alarming.

As a new buyer in Maryland, you need to be very cautious and cannot afford to make any mistakes. Thankfully, there are resources available to you which would help to facilitate the entire process, starting from a search of a new home to finalizing the deal. All you need to do is to follow the set path and use your common sense to make the right decision.

Being a first-time buyer, you are likely to face many challenges, but there is nothing to worry about, as you have some of the best service providers to assist you in every possible manner. So, if you are one of the first time home buyers in Maryland, all you need to do is to allow the experts to take charges and as far as you are concerned, you just need to arrange for funds and take the final call.

First-Time Home Buyer Programs in Maryland

September 21, 2018 By Tyler Plack Leave a Comment

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.

Get pre-approved today to enjoy its benefits. 

 

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.

 

Maryland SmartBuy

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 HomeCredit

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.

 

Conclusion

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.

FHA Streamline Refinance In Maryland

September 14, 2018 By Tyler Plack 1 Comment

Maryland FHA Streamline Refinance

With the significant fall in interest rates in the recent times, borrowers in Maryland are anxiously searching for effective ways to lower their old interest rates. FHA Streamline Refinance is an effective and fast way to deal with the problem and take care of all your FHA backed loans. It gives you the opportunity to lower your interest rate, monthly payments, and gain freedom from a lot of paperwork. But before we discuss its advantages, let’s discuss what FHA streamline refinance actually is.

What is FHA Streamline Refinance?

FHA Streamline refinances allow Maryland homeowners to refinance their home loans according to the current interest rates. If the rate of interest in the market is lower than it was when you acquired the loan, you can refinance the loan to take advantage of current market conditions. It is an easy and effective way to reduce your interest rate and lower your monthly payments if you have an existing FHA home loan.

Best of all, you do not need to submit a new credit report, complete verification of your employment, or an appraisal, which saves you a lot of valuable time and money.

Why should you refinance through FHA streamline refinance in Maryland?

Refinancing can provide significant savings. Here is a checklist that would make refinancing a smart option for you:

  • If your current loan has a high-interest rate.
  • If your current loan offers adjustable rates.
  • If your credit score has recently improved
  • If you have a balloon payment coming due soon.
  • If you are planning to stay in the same house for the coming years.
  • If you have accumulated some equity
  • If you have a HELOC (Home Equity Line of Credit)
  • If you have a second mortgage to pay

If you are having any of the mentioned issues, you could benefit from refinancing your current home loan. Not only will you be able to enjoy the attractive FHA streamline refinance rates but also help you manage your long-term finances more efficiently.

The FHA streamline refinance is a reduced documentation loan, meaning it is much easier to obtain than your initial FHA loan.

What are the advantages of FHA streamline refinance in Maryland?

There are many FHA streamline refinance pros and cons to be discussed. Apart from refinancing your loan rates to meet the more attractive current market standards, FHA streamline refinance offers numerous other advantages.

  • FHA streamline refinances program permits you to refinance up to 96.5 percent of your property’s total value. If you are someone who still owes the significant portion of your existing mortgage, this is the most effective and proficient solution for you.
  • Having bankruptcy in your financial history might be the sole reason for rejection by other financial institutions. But FHA refinance program allows you get help despite your financial history. As long as your record is clean and without any bankruptcies for the past two to three years, you can get refinanced.
  • Individuals who outright own their home are allowed to borrow up to 85 percent of the property’s total value without any hassles.
  • The FHA streamline refinance lenders are quite lenient and keep the credit and income requirement rates to the minimum. You can even get an FHA refinance at the low credit score of 650.
  • Foreclosure in your financial history is no issue either. As long as the foreclosure happened at least three years prior, you can get your home loan refinanced, easily and effortlessly.
  • Apart from the possibility of “no-cost” refinancing, streamline refinance in FHA do not require any additional loan balance to cover the loan costs.

With the exponentially low market rates and such attractive advantages, more and more homeowners are getting their loans financed in Maryland. So, what are you waiting for? Apply for getting your home loan refinanced today!

How can you qualify for an FHA streamline refinance?

To qualify for your FHA streamline refinance, here are some necessary requirements that you will need to fulfill.

  • To avail the benefits of the FHA refinance program in Maryland, you must currently have an FHA loan.
  • Your mortgage needs to be insured to get qualified for refinancing.
  • The particular home on which you have taken the loan or are planning to get refinanced needs to be your primary home. A second house or holiday home will not qualify.
  • You need to have a clean mortgage repayment history. Your mortgage payment must be current to meet the requirements of the FHA streamline refinance program.
  • The new loan you aspire to take should lower your interest payments and monthly principles compared to the old one. It needs to be a conversion from an adjustable rate to a fixed rate.
  • The current home loan you already have needs to be at least seven months old. There should be a time period of six months after your first payment due date to move forward for an FHA streamline refinance program.
  • And lastly, you must not have refinanced for the past six months to get qualified for an FHA streamline refinance in Maryland.

 

What can you do if you don’t qualify for the refinance program?

It is not uncommon for people to be deemed ineligible for a variety of reasons. One of them is moving into a new property and assuming the loan from a previous owner. To deal with such problems, FHA offers a modified and updated version of the refinance program called the Credit qualifying streamline refinance. You will need to provide documentation of your income, credit report, and debt-to-income ration calculated on the FHA streamline refinance calculator. The paperwork is more time-consuming when compared to the streamline refinance program, but it is still quite an impressive alternative to a standard refinance scheme. If your home loan is continuously elevating your monthly payments, credit qualifying streamline refinance is the perfect solution for you.

With the historic low-interest rates and a plethora of benefits, you cannot miss this opportunity to get FHA streamline refinance in Maryland.

Get pre-approved today to enjoy the boons of getting refinanced!

Annapolis mortgage group offers FHA Streamline Refinance in Maryland and ready to help you get pre-qualified for the program. Just fill out the free online application, and one of our mortgage professionals will contact you as soon as possible to discuss your options.

VA Loan Requirements in Maryland

September 7, 2018 By Tyler Plack Leave a Comment

Home to the plethora of major military installations, Maryland is a popular choice for veterans to settle in. The peaceful and tranquil coast offers the perfect location to purchase your new home. If you are or have been in the armed services, you can take advantage of the VA home loans for up to 100% financing of your home. For a military veteran, qualifying for a VA loan benefit is simple, easy, and extremely convenient. But before we move forward to the VA loan requirements, let’s discuss what a VA loan is.

What is a VA loan?

A VA loan is a mortgage loan created especially for veterans by the United States Department of Veteran Affairs. The loan allows all different kinds of veterans, service members, and the eligible surviving spouses to purchase a home. You can get a VA loan to buy, build, repair, or even retain a house. It offers 100% financing on the total value of your home irrespective of you being a first-time homebuyer or a seasoned homeowner. VA loan requirements in Maryland are quite lenient and accommodating. They offer a plethora of benefits including low-interest mortgage rate, lack of down payment (optional), lack of insurance premium, low credit limit, and more.

Know more about VA loan benefits and your eligibility now!

What are the benefits of getting a VA loan?

VA loans offer several benefits for military veterans to enjoy while purchasing their dream home.

  • One can get away without a down payment if the lender doesn’t require so. If the purchase price of your house is more than the established property value, you might need to put down a down payment but otherwise, you are good to go.
  • The closing costs are extremely limited. You can even get your seller to pay for it and save some additional expenses.
  • You do not need to pay any private mortgage insurance premium that most home loans mandate. It lowers your monthly installment as well as saves a lot of money in the long run.  
  • VA offers expert assistance to help borrowers avoid defaults and maintain regular payments.
  • You might not be charged with any prepayment penalties; it depends from lender to lender.
  • Some counties in Maryland even offer some additional benefits including property tax reductions to make VA loans more attractive and advantageous.
  • The VA loans allow lenders to determine their own criteria which results in enhanced leniency and forbearance. This also allows veterans with low credit scores to find a lender who is open to negotiation.
  • As VA loans are specifically created for struggling veterans. They allow veterans to qualify for a low-interest VA mortgage which can be quite beneficial in the long run.
  • VA loans are not limited to first-time home buyers and allow you to reutilize the benefits according to your convenience. You can even assign your home loan to another qualifying person if you want to.

So, what are you waiting for? Get pre-approved to apply for own VA loan today!

What are the VA loan requirements in Maryland?

Now that we have discussed the several benefits of getting a VA loan in Maryland, let’s confer on the loan requirements that you need to qualify in order to get one.

Here are the necessary VA loan eligibility requirements to get approved for your VA home loan in Maryland.

  • Active time served– VA loan requirements need you to serve at least 90 days or more of active duty during wartime to qualify for the loan. If you have not served any active time in warfare, do not worry, you can still get approved. You will need to have served 181 days or more of active duty during peacetime to qualify. If your time served in active service is any less, you will not be eligible for the benefits of the VA home loans.
  • Honorable discharge– You need to have been discharged under circumstances that are honorable and at par with the ethics that our veterans go by. Dishonorably discharged veterans will not qualify for VA home loans in Maryland.
  • Spousal requirements– If you are the surviving spouse of a deceased veteran, you can get qualified. The veteran has to have died during his term of service or because of some service-related injury for his/her spouse to qualify. Moreover, the spouse needs to stay unmarried at the time of attaining the loan. A remarried relative will not be eligible for VA loans.
  • Required credit score– VA loan requirements are quite lenient and allow lenders to set up their own criteria. This is enormously convenient for if you do not meet the credit standards of one lender, you can always go to another who offers the loan at a lower credit score. The general credit score that most lenders can do is 550 so if you are anywhere near, you will easily qualify.
  • Payment history– Your payment history plays a crucial role in getting your qualified or disqualified for the loan. The VA approval process takes a look at your credit history of the past 12 months to determine whether you are eligible or not. You need to have a clean payment history, without any late payments or defaults to get approval. If there are any discrepancies, you will be deemed unreliable and incapable to make repayments. Although, VA loans do allow veterans with past bankruptcy (1 to 2 year waiting period depending on type) and foreclosure if their financial statement is clean for the last 2 years.

Think you meet all the basic requirements mentioned above? Get approved and start your application process today!

Conclusion

Specifically for veterans, VA home loans are an excellent option for members of the armed forces looking to purchase their own house. With such a large and extensive variety of benefits, these government-backed loans are your best bet for getting your dream house. The lenient loan requirements and the convenient application process makes it much extremely easy to get a home loan in Maryland.

Are you ready to take the first step? Connect with a VA home loan specialist and determine your eligibility now!

Loans for Investment Properties

August 26, 2018 By Tyler Plack Leave a Comment

Ultimate Guide to FHA Loans in Maryland

August 26, 2018 By Tyler Plack 1 Comment

FHA loans are some of the easiest mortgages to be approved for. FHA loans are guaranteed by the Federal Housing Administration, and they are designed for homeowners who may have damaged credit, are unable to make a large down payment, or are first-time homebuyers.

Best Candidates for FHA Loans

  • Borrowers with damaged credit
  • Borrowers unable to make a large down payment
  • Borrowers who receive their down payment as a gift
  • First-time homebuyers

Advantages of FHA Loans

  • Low down payment requirements
    The required down payment on FHA loans ranges from 3.5% to 10% of the purchase price of the home, depending on your credit score.
  • Down payment funds can be received as a gift
    Many programs do not allow down payments to be received as gifts. With FHA loans, down payments can always be received as gifts.
  • Low interest rates
    The market for FHA loans is very competitive, so interest rates tend to be very low on FHA loans.
  • Bankruptcy & foreclosure forgiveness
    Recent bankruptcies and foreclosures are not dealbreakers. It is possible to become approved even if there was a recent bankruptcy or foreclosure if you can re-establish credit.
  • Sellers can credit closing costs
    The seller can credit the closing costs for your loan by up to 6%.

Downsides of FHA Loans

  • Mortgage insurance
    Mortgage insurance, also known as PMI or MIP for FHA loans, is required throughout the life of the loan. On conventional loan programs, mortgage insurance is required when the down payment is less than 20%.
  • Not all properties qualify
    FHA loans cannot be made on all properties. For instance, FHA loans cannot be acquired on properties that pose safety issues that would require a renovation.
  • Lending limits
    Lending limits as of 2018 for one-unit dwellings is $679,650. In low-cost areas, the limit for one-unit dwellings is $294,515.

How to Qualify for an FHA Loan

If you are looking for an FHA loan, you need to meet the following requirements in order to qualify.

  1. Credit requirements
    For an FHA loan, you need to meet a minimum credit score of 500 (or 580 to take advantage of a 3.5% down payment).
  2. Down payment requirements
    You need to meet a minimum down payment of 3.5% if you have a 580+ credit score. If you have a 500+ credit score, the down payment requirement is just 10%. 
  3. Debt to income ratio requirements
    Your debt to income ratio cannot exceed 43%. Debt to income is calculated as the sum of all debts divided by your gross income. For example, if you have an auto loan ($250 monthly payment), an installment loan ($200 monthly payment), and are looking for a mortgage ($2,000 monthly payment), your total monthly debt is $2,450. If you have a monthly income of $6,000, then your debt to income is $2,450 divided by $6,000 or 40.8%.

FHA Loan Summary

Down Payment Advantage
Credit Score: 580+
Minimum Down Payment: 3.5%
Debt to Income Ratio: 43% or less
Mortgage Insurance: Required

Standard
Credit Score: 500+
Minimum Down Payment: 10%
Debt to Income Ratio: 43% or less
Mortgage Insurance: Required

  • « Previous Page
  • Page 1
  • Page 2

Primary Sidebar

Recent Posts

  • Digitizing the Lending Process for Home Buying
  • Incentives for Home Buyers in Maryland
  • Important Facts and Details About Best Maryland Mortgage
  • What Credit Score Should You Have to Buy a New Home in Maryland – A Complete Guide
  • Mortgage Pre-Approval Calculator – A Complete Guide

Recent Comments

  • Digitizing the Lending Process for Home Buying - Annapolis Mortgage on Important Tips: Dos & Don’ts for the First Time Home Buyers in Maryland
  • Incentives for Home Buyers in Maryland - Annapolis Mortgage on Important Tips: Dos & Don’ts for the First Time Home Buyers in Maryland
  • Best Maryland Mortgage Facts - Annapolis Mortgage on FHA Streamline Refinance In Maryland
  • Mortgage Pre-Approval Calculator – A Complete Guide on Maryland FHA Loan Requirements, 2018 Limits, and Guidelines
  • First Time Home Buyers in Maryland Do's and Don'ts - Annapolis Mortgage on Maryland FHA Loan Requirements, 2018 Limits, and Guidelines

Categories

  • Conventional Programs
  • Getting Ready to Buy a Home
  • Government Loan Programs

Are you looking for more information?

Learn more & speak with an advisor

(877) 421-0437

Copyright © 2022 Annapolis Mortgage Group Log in