Have you considered buying a home in the Old Line State? Maryland is a great state to call home and offers a large selection of mortgage options to choose from. Whether you’re a first time home buyer or current home owner, Maryland has a variety of mortgage programs designed to help you with your home purchase.
What are these mortgage programs and how do you qualify? We’ll walk you through everything you need to know.
The Best Lenders in Maryland with Mortgage Programs
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- Best for Self-Employed: CrossCountry Mortgage
- Best for VA Loans: Veterans United
- Best for Online Loans: Rocket Mortgage®
- Best for In-Person Experience: PNC
- Best for First Time Home Buyers: Flagstar
5 Best Mortgage Lenders in Maryland
Look for a lender who offers the incentives that are most important to you and be sure they offer a Maryland mortgage program if you’re interested in applying for one.
We’ve broken down 5 of the top lenders in the state into categories to help you find your perfect match:
- Self-employed Borrowers
1. Best for Self-Employed: CrossCountry Mortgage
CrossCountry Mortgage is a rising online lender that makes it easy for self-employed and contract workers to get approved for a mortgage. Its innovative bank statement qualifier loan program looks at just your bank statements (instead of W-2s and pay stubs) to determine your financial eligibility.
Home buyers can also apply for conventional or FHA home loans if they are self-employed. CrossCountry Mortgage has a flexible underwriting process and works closely with you throughout the loan application process.
Credit score requirement: 620
Loan types offered: Conventional, FHA and refinancing loans
- Current Service Members
2. Best for VA Loans: Veterans United
If you’re a current or former veteran (or immediate family member of someone who served), you might want to look into a VA loan. These loans are specifically intended for veterans and have low-interest rates and typically no down payment requirements. Veterans United also allows you to check your eligibility online and walks you through every step of the application process.
Credit score requirement: N/A
Loan types offered: VA loans
- Online Mortgages
3. Best for Online Loans: Rocket Mortgage®
Owned by giant Quicken Loans®, Rocket Mortgage® is a fast-growing online lender that offers a large selection of mortgage products. Rocket Mortgage® streamlines the home loan process and allows you to navigate it at your own speed. The application takes just minutes, after which you’ll see your approval status and choices of qualifying home loans. It also offers 24/7 customer service if you need help at any point during the process. To calculate your mortgage payment, including interest rate and loan amount, you can refer to their mortgage rate calculator.
Credit score requirement: 620
Loan types offered: Conventional, FHA, USDA and VA loans
4. Best for In-Person Experience: PNC
Would you prefer to apply in person with the help of an experienced loan officer? If so, PNC Bank is one of the leading mortgage lenders in Maryland. You can start your application online or in person. PNC also considers alternative credit history, which allows you to submit on-time rent or utility payments if you have poor credit. PNC also offers low down payment options.
Credit score requirement: 620
Loan types offered: Conventional, FHA, USDA and VA loans
- Specialized Loan Products
5. Best for First Time Home Buyers: Flagstar
You may be eligible for some first time home buyer discounts or mortgage products when you buy your first home. Flagstar is a leading lender in providing loan services to first time buyers, especially in Maryland. It’s well-known for its large selection of government-backed loans, including FHA loans, often called first time home buyers loans. Flagstar also offers a fully online application and small down payment loans — with as little as 3% down.
Credit score requirement: 620
Loan types offered: Conventional, FHA, USDA and VA loans
A List of Maryland Mortgage Programs
Maryland has a good selection of mortgage programs available for home buyers in the form of home loans, assistance programs and credit offerings. Before buying your home, you should review their full list of programs to see if one of them may help make your home purchase more affordable.
Let’s take a look at the key differences below.
Maryland Mortgage Program (MMP) Home Loan
This program offers a 30-year fixed-rate loan, which means the interest rate is the same for the 30-year duration of the loan. There are 3 types of home loans to choose from: 1st Time Advantage (ideal for first time home buyers), Flex (for current homeowners) and special home loan programs that are offered throughout different times of the year.
Maryland SmartBuy
This program allows you to purchase certain state-owned houses and even allows you to pay off your student loan debt with your MMP home loan.
Down Payment and Closing Cost Assistance
This program can be coupled with an MMP home loan or other nonstate-offered mortgages. It allows you to borrow up to $5,000 for down payment or closing costs in the form of another home loan or second mortgage. Down payment assistance in Maryland has 0% interest rate.
Maryland HomeCredit program
This credit program allows you to claim a federal tax credit of up to $2,000 on your home each year for the duration of your home loan. Your specific claim will vary based on your mortgage rate.
Partner Match Programs
There are many employers in Maryland who partner with the state to make it easier for you to buy a home. Depending on your employer and the program you’re applying for, you could receive down payment assistance matching up to $2,500.
Many of the above mortgage options and down payment assistance or tax credit programs can be used together to help you save even more on your home purchase.
What is a Mortgage Program?
There are different types of mortgages out there — some targeted to first time home buyers and others designed to help existing home owners buy a new home. No matter your home ownership status, you should always look into mortgage programs to see if you qualify for discounts or grants.
A mortgage program is typically a state-funded program that works with statewide, local and national lenders to help make competitive mortgage rates, financial assistance programs and even tax credit programs available to home buyers.
These mortgage programs often support low-income or first time home buyers, but usually have a variety of options available for most home buyers.
Who is Eligible for a Mortgage Program?
Eligibility requirements vary by state and program. Some financial assistance programs require income limits to demonstrate your financial need. Others might have credit score requirements or property value limits.
Many state mortgage programs are designed to help low-income buyers, buyers with poor credit or first time home buyers afford a home. There are typically a few programs that offer assistance to existing home owners or buyers who don’t qualify for income-based programs.
Maryland Mortgage Program Requirements
You’ll find different requirements for the many mortgage programs in Maryland, and they vary by income limit, credit score and location. However, there are some basic requirements you should meet before looking into these programs.
In general, you must be over 18 and a full-time Maryland resident to apply for one of the state’s mortgage programs. The home you purchase must also be your primary residence. You must also meet state income limits, which vary by location and the number of residents in your household. These limits range from $92,500–$154,400.
You can view the full list of income limits by household and area.
You may have 20% of your home value on hand or in liquid assets (cash or an asset that can be easily converted to cash). In that case, you might not be eligible for one of the programs since they’re designed to offer financial assistance. Your lender can verify your eligibility before you apply.
Last, you’ll need to partner with one of the 80 approved lenders to apply for your home loan and make sure you take a home buyer education course. This education course is required for all Maryland mortgage programs and can help you prepare for the financial responsibility of home ownership.
Buy Your Maryland Home with Confidence
Before rushing into buying a home in Maryland, it’s important to take a look at all of the mortgage programs in the state to see if you qualify for any discounts. From there, find a lender that participates in a Maryland mortgage program. Be sure to determine which incentives are important to you before you decide on a lender so you feel confident about your commitment.
Frequently Asked Questions
How do I get pre-approved?
First, you need to fill out an application and submit it to the lender of your choice. For the application you need 2 previous years of tax returns including your W-2’s, your pay stub for past month, 2 months worth of bank statements and the lender will run your credit report. Once the application is submitted and processed it takes anywhere from 2-7 days to be approved or denied. Check out our top lenders and lock in your rate today!
How much interest will I pay?
Interest that you’ll pay is based on the interest rate that you received at the time of loan origination, how much you borrowed and the term of the loan. If you borrow $208,800 at 3.62% then over the course of a 30-year loan you will pay $133,793.14 in interest, assuming you make the monthly payment of $951.65. For a purchase mortgage rate get a quote here. If you are looking to refinance you can get started quickly here.
How much should I save for a down payment?
Most lenders will recommend that you save at least 20% of the cost of the home for a down payment. It is wise to save at least 20% because the more you put down, the lower your monthly payment will be and ultimately you will save on interest costs as well. In the event that you are unable to save 20% there are several home buyer programs and assistance, especially for first time buyers. Check out the lenders that specialize in making the home buying experience a breeze.